Thai Bank Interest

[Thormaturge]

^
What I suspect may be going on is what I regularly see with the tax system.

Over the past eight years I have obtained in excess of ThB 100,million in tax treaty refunds for people who have left Thailand. Just recently a representative from the Revenue Department audit section proudly announced that foreigners are not entitled to claim refunds after they have left the country, that some of my documentation was not in accordance with "the law", and I had to personally refund the money. The local Revenue Department staff I work with were bluntly informed they would go to prison if I didn't. No copy of "the law" could be provided and anyway apparently I should know "the law" if I am processing these claims.

The tax treaties are, themselves, international law so I wasn't having this crap and my office manager waded through decades of Thai laws looking for any reference to the specific documentation we use. It took weeks but she found it and I invited the auditors for a further meeting to discuss their ThB 100,million. They were wrong. What we had been confronted with was blatant prejudice and my staff described the audit manager as having a "broken face" when we parted company. My dealings with the Thai Revenue Department are always cordial and professional, but when someone tries this garbage it isn't politeness that they remember me for. The Revenue Department don't fire people like this, they just break the unit up and transfer people to offices where it is difficult to recruit.

I want to see the rules governing these bank accounts because I suspect foreigners may well be entitled to interest, but that local prejudices prevent them receiving it.

[serrollt]

What kind of bullsh!t policy is that? Another example of dysfunctional Thailand.



Somebody would have gone home from work at the bank that day with twice the number of anuses they started the day with. I would have not taken that response lightly.

His facecolour went from shitstain brown to chalkwhite after my response, still didn't get the interest though.

[Texpat]

Extortion (also called shakedown, and exaction) is a criminal offense of obtaining money, property, or services from a person, entity, or institution, through coercion.

my staff described the audit manager as having a "broken face"

Imagine how broken he'd be if you told him and his colleagues that what he was doing was criminal and he might do a stretch in the klink if he isn't careful. But it just as likely might be intentionally vague language such that anybody can interpret it in any number of ways -- which merely emboldens the corrupt.

[Thormaturge]

he might do a stretch in the klink if he isn't careful.

A transfer to somewhere like Hat Yai is more likely.

No need for an expensive trial. This audit team cannot do their job in Bangkok now, the local Director was very blunt about that.

[Thormaturge]

I seem to be getting some sense on the bank deposit issue.

For traditional bank deposit accounts the banks should be requesting copies of visas and work permits from foreigners who open the accounts. There is no formal requirement that a foreigner holds a particular type of visa or even a work permit in order to open a savings account because such accounts will always remain in credit. If a savings account balance reduces to nil then the account should be closed.

Where the balance on a savings account is no more than ThB 1,million it is covered by the Deposit insurance scheme which is ultimately funded by the Thai taxpayer, and this is the reason why interest is only paid on such accounts to natural Thais or foreigners with work permits. Essentially therefore if the account is covered by the Thai Deposit Insurance scheme you will need to have a work permit in order to obtain interest since otherwise you are not contributing to the scheme protecting the account.

Theoretically Serrollt should have received interest on his deposit up until the point he ceased working here.

The answer to the OP's question therefore seems to be that you will not receive interest unless the deposit is unprotected. In Thailand I wouldn't risk it.

[serrollt]

I wasn't working, I was a tourist.

So, the bank was right in claiming they made a mistake with the interest. Nonetheless, pretty annoying when they deduct it years later.

[MrBlobby]

I have sent two emails to my bank and had two acknowledgement emails in return.

However nothing as yet in answer to my question regards interest on my account.

The point raised by Thorm regarding the deposit protection scheme not applying on deposits above a million has suddenly become quite worrisome and I shall have to make further arrangements I fear.

[Delayed]

Mr B. What sort of Real estate investment did you make, where and how much did you invest? Not being nosey but just wondering maybe a route I need to follow.

[MrBlobby]

Mr B. What sort of Real estate investment did you make, where and how much did you invest? Not being nosey but just wondering maybe a route I need to follow.

Didn't really pursue as a Real Estate Investment as such; was making a fair few holiday visits and using hotels and decided that I could see myself spending lots of time in LOS in the future so decided to get some places in the quieter part of Patts.

One to live in, the rest to rent out for income.

Havn't felt ready to make the break yet so rent them out, and use when I holiday if available.

The whole Real Estate sector IMHO is a nest of worms and riddled with horror stories.

And of course Farangs cannot own the land upon which a property is built.

And you have to be careful where you buy because of the vast oversupply , and also if you could sell if you had to.

Things worked out for me, but I wouldn't be interested in buying more in LOS.

[Delayed]

Cheers Blobby. Ya it seems a gamble, more so than a few years ago with the new "government" making changes then reversing changes in a few weeks as they see unexpected consequences of their actions. Also the precarious state of the economy at present, I wonder if that could have a negative effect on farang "ownership" of property, like codes etc.

Not sure what part of the world to set shop up in, but honestly like many areas of Thailand.