Do I need to pay tax on income from bank deposit in Thailand. What is the tax on income from the deposit
July 4, 2021
In the article “What is the interest on a bank deposit in Thailand” I already wrote that “in Thailand the interest on a bank deposit is very low – as in Europe, in the region of 1% (0.5-2)”. At the moment, it is problematic to find a deposit of more than 1.5% per annum, so if your goal is to receive any significant money from a bank deposit in Thailand, then you need to invest large amounts. But there are restrictions for bank deposits, for example (depending on the terms of the deposit), 1.5% can be charged only for amounts up to 500,000 baht, and 0.5% is charged on anything over. Or 1.5% is charged for an amount of up to 100,000 baht, and for everything above, no interest is charged at all.
For me, a deposit in a Thai bank is primarily a way to save money, since the Thai baht is a stable currency even against the dollar.
Nevertheless, some interest is charged. I will show you as an example of one of my card accounts used for day-to-day transactions. The balance of this account is charged with a ridiculous 0.1% per annum, but for our purposes this example will do.
Do I need to pay tax on income from bank deposit in Thailand
Yes need. Moreover, this tax is written off automatically immediately when the interest on the deposit is credited.
Take a look at the following screenshot:
In it, the line “Interest Deposit” is the accrued interest on the deposit. And the line “Tax Deduction” is the deducted tax on earnings from the bank deposit.
What is the tax on income from a deposit in Thailand
Although the amounts are small, with the help of them we will be able to find out how much interest is tax on income from a bank deposit:
14,28÷95,2×100 = 15%
Bank deposit tax in Thailand is 15 extortionate percent.
Whether it is necessary to pay tax on a bank deposit to Thais and what is its size in this case, it does not matter to us at all.
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