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Did you know that to deposit your money in the bank account, you have to pay a tax called ‘Deposit interest tax’ ? How much money do we have in the bank account which will reach the criteria and have to pay for this tax? ACU PAY will share some knowledge about this and non-taxable deposits. Follow us on the topic of deposit interest tax.
If you receive interest and returns on savings deposits from “All Accounts” combined within one calendar year (January 1 – December 31) with a total amount exceeding 20,000 baht, you will have to pay 15% of the interest payable that year immediately. For example;
Case 1: Having one deposit account
Mr. A has a deposit in one savings account and receives an interest rate of 20,000 baht this year. This amount has not exceeded the legal limit (20,000 baht). Therefore, Mr. A does not have to pay interest tax this year.
On the other hand, Mr. B has a deposit in one savings account and receives an interest rate of 20,050 baht. This interest amount is greater than the legal limit of 20,000 baht. Therefore, Mr. B has to pay interest tax on deposits this year.
Case 2: Having more than one deposit account
Mr. C has two savings accounts at the same bank, each of which receives an interest rate of 10,500 baht this year, with two interest accounts equal to 21,000 baht. This amount is more than the legal limit (20,000 baht). Therefore, Mr. C will have to pay interest tax on deposits this year.
At present, if the interest on our savings deposit exceeds 20,000 baht, the bank will immediately deduct 15% of the interest earned. However, anyone who notifies the Bank for not submitting information to the Revenue Department in 2562 B.E. That person will be taxed at 15% of the withholding tax from the first baht.
If we’re taxed withholding tax at 15% of the interest earned, we have the right to apply for an annual tax refund. If we have less than 15% of the tax base, we can get the refund, or if we have 15% or more of the tax base, it can be deducted and not be taxed.
For the option of people who prefer to deposit and want full interest without having to pay taxes, we recommend current deposits made by state-owned banks, such as GS banks, BAAC Bank, and tax-free fixed deposit accounts. The deposit period ranges from 24 to 36 months, and the total amount of deposits must not exceed 600,000 baht. Additional conditions will depend on each bank.
For example, you have to deposit 2,000 baht every month until the due date of the deposit period. You will receive interest according to the conditions. Interest on tax-free will be higher than ordinary fixed deposits and will not be taxed at 15%.
How’s that? There are also some headaches in accounting, but knowing the principles of deposit interest tax, refunds, and non-taxable deposits will give us a little more insight into tax.
