The Revenue Department will adjust its disclosure requirement by asking depositors who do not want their interest income information to be submitted to the department to declare their intention to banks.
The latest move is to ease public outcry and make it more convenient for depositors, most of whom earn interest of less than 20,000 baht a year.
After the department's notification is amended, depositors who do not declare their intention to bar banks from providing their interest income data to the Revenue Department are considered as providing consent for the information submission, said spokesman Pinsai Suraswadi.
The department's director-general issued a notification on April 4 demanding that all depositors offer permission for banks to report their interest income information. Those with an annual interest income of up to 20,000 baht were also required to consent in exchange for maintaining the 15% withholding tax income waiver.
Finance Minister Apisak Tantivorawong said recently that the Revenue Department's requirement for the interest income data of all depositors was aimed at closing a loophole used by some small banks to help customers avoid paying the 15% withholding tax on interest.
To comply with the Revenue Department's latest notification, banks must receive permission from all depositors by May to avoid breaking laws governing financial institutions.
Mr Pinsai said the amendment will help eliminate the burden of those with an annual interest income below 20,000 baht in providing consent.
The amendment is expected to be completed by next week, he said.
Some 99% of 85 million deposits accounts are already tax-exempt because they earn interest of less than 20,000 baht a year. Interest income information must be turned in by May 20 for the first half and Nov 20 for the second half.
Kobsak Duangdee, secretary-general of Thai Bankers' Association (TBA), said banks are concerned that details in the consent form will not be complete, as they are required to comply with the Revenue Department's demand within a short period of time.
Chuleeporn Nuamtanong, deputy secretary-general of the TBA, said after a meeting yesterday that the TBA and the Association of International Banks will meet with the Revenue Department again tomorrow to discuss practical guidelines.
Chantavarn Sucharitakul, assistant governor in the corporate strategy office of the central bank, said the Bank of Thailand is aware of the issue but financial institutions might need more time to comply with the Revenue Department's requirement and discuss the process, obstacles, impact and options.