A2Z Bank Public Co, Ltd. Grants a credit to Mr.Bean for the purpose of purchasing a plot of land together with a new house constructed thereon in the amount of Baht 1,500,000. Mr. Bean agrees to pay the principal together with interest thereof at the rate of 18% per annum within 1 year. In order to satisfy A2Z Bank, Mr.Bean has to register the mortgage of both land and house with the registrar in the full amount of dept. Mr.Bean receives the money in full from A2Z Bank upon signing the loan agreement, the same date of mortgage registration with the Land Office.
What is legal status of the interest paid by Mr.Bean under the Thai Revenue Code?