somtum
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Post by somtum on Sept 7, 2018 19:55:37 GMT 7
I am having some investments and some cash left abroad and am thinking what to do with it.
Does someone know:
1) What taxes I have to pay in Thailand for any income I make abroad (e.g., capital gain when selling stocks)?
2) What country abroad does not impose taxes on foreigners investing there? For example, countries like Netherlands or Germany impose taxes on money made there even if you’re abroad. E.g., a foreigner living abroad but having a stock account in the Netherlands where he makes money by trading stocks would have to pay taxes on that capital gains there.
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Post by rgs2001uk on Sept 7, 2018 20:50:56 GMT 7
1, none.
2, I am a Brit, I live in Thailand, I invest in the UK and pay no taxes on any money made.
You may have difficulty opening a UK based stockbroker account.
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AyG
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Post by AyG on Sept 8, 2018 8:55:45 GMT 7
Theoretically income earned abroad and brought into Thailand in the same year is taxable here. However, in practice the tax man here isn't interested.
Countries which don't tax non-residents income or capital gains include Luxembourg and Singapore. Fairly straightforward to open an account there, provided you meet the broker's criteria.
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somtum
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Post by somtum on Sept 8, 2018 11:11:33 GMT 7
2, I am a Brit, I live in Thailand, I invest in the UK and pay no taxes on any money made. I’m EU citizen. Not sure if (a) that would make it easier to open an account in the UK and (b) how Brexit would come into play in all that (I’m a bit reluctant to move any money to the UK given the current uncertainty). |
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somtum
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Post by somtum on Sept 8, 2018 11:15:59 GMT 7
Theoretically income earned abroad and brought into Thailand in the same year is taxable here. However, in practice the tax man here isn't interested. I wasn’t going to bring it into Thailand. I was thinking about leaving my Euro at home and trade there. Are you sure any money made from that doesn’t have to be added to my Thai Income Tax declaration? Because my broker at home asked me for my Thai tax ID. Countries which don't tax non-residents income or capital gains include Luxembourg and Singapore. Fairly straightforward to open an account there, provided you meet the broker's criteria. I’ve heard Singapore got quite difficult since it requires a minimum capital invested. Also not sure about losing on money transfer. Luxembourg might be better since it’s also Euro. Any recommendation for an online broker there? |
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AyG
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Post by AyG on Sept 8, 2018 12:04:04 GMT 7
Internaxx.
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AyG
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Post by AyG on Sept 8, 2018 12:11:19 GMT 7
Singapore isn't difficult. Minimum to open an account with Saxo is SGD 3,000 (roughly 72,000 baht in real money). Not sure why you think you'd lose money on transfer.
Singapore is more convenient if you think you'll need to speak to your broker since it's a similar time zone.
If you have enough invested, service from Saxo is excellent. Internaxx is less personal.
Saxo (for me) works out more expensive than Internaxx.
Saxo's web application is much more complex than Internaxx's and is quite difficult to get to grips with.
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AyG
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Post by AyG on Sept 8, 2018 12:13:30 GMT 7
Luxembourg might be better since it’s also Euro. Makes no difference. You have multiple subaccounts - one in each currency you invest in. Custody fees are deducted from you main account (in my case, that's GBP) at the prevailing FX rate. |
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Post by Fletchsmile on Sept 13, 2018 13:33:03 GMT 7
As a Brit now resident in Thailand:
a) Thailand is generally a good location for investments held in Thailand. Most unit trusts/mutual funds/ SET listed shares have no capital gains. Unit trusts/ mutual funds you can easily eliminate income tax too by selecting non dividend paying funds (accumulation units)
b) For investments held overseas and money brought into Thailand, as AyG mentions Thai tax authorities are not really interested in it in practice for individuals, as the amounts involved aren't worth bothering with, particularly as there are often Double Tax Agreements (DTA) which would reduce tax anyway. There is no capital gains tax or inheritance tax on overseas investments. technically income could be taxed if you bring it in the year in which earned, but rarely bothered with in practice. That is easily avoided by bringing it the following tax year.
i.e any dividend income received in 2018, just bring it in on 2 January 2019. Worth segregating your bank accounts just in case so you can demonstrate clearly it is 2018 income not 2019 if ever asked.
c) For investments I hold in the UK, they are usually in UK tax free investments such as ISAs and SIPPs. I pay no UK tax on them. No Thai tax easier by just waiting to start of next tax year to transfer in. When transferring money in, I always state on the transfer form something like: "transfer from capital for living expenses in Thailand", to make it clear it's not income this year
d)Singapore is a great location for me as a Brit non-resident in Singapore, and is my 3rd location - used for offshore investments - in addition to my UK and Thailand holdings. As a non-resident for Singapore, I find it generally a low tax environment. I pay no CGT. The only income tax I suffer is withholding tax on dividends where applicable. If you choose something like Singapore REITs on SGX there is no capital gains tax and income is generally tax free for individuals holding
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