Witholding Tax on Dividends

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Fletchsmile
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Witholding Tax on Dividends Oct 3, 2019 15:34:22 GMT 7

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Post by Fletchsmile on Oct 3, 2019 15:34:22 GMT 7

Importance announcement on the way these re handled.

By default 10% WHT will now be deducted. In the past you could elect 0% and then pay at marginal rate of tax - which was useful for low income/ non-taxpayers.

Now the 10% is default you would have to claim back WHT on submitting your income tax (PND90) form each year

Announcement for dividend withholding tax to comply with the Revenue Code Amendment Act (No. 52) B.E. 2562 (Retail Investors)
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9 August 2019
Kindly be informed that the Revenue Code Amendment Act (No. 52) B.E. 2562 mandates that all mutual funds must deduct 10% withholding tax from dividends distributed to individual unitholders.

Therefore, your prior selection regarding withholding tax preference will be updated to reflect the amended law and 10% withholding tax will be imposed on all your mutual funds’ dividend payments starting 20 August 2019.

Please note that for the unitholders subjected to lower tax bracket can reclaim the withheld amount by submitting the P.N.D. 90 form to the Internal Revenue Service department.

For further information please contact 02-777-777 press 0, then 6 from 8.30 – 17.00 during business days or visit www.scbam.com.

List of mutual funds that must be deducted withholding tax from dividends distributed
The Revenue Code Amendment Act (No. 52) B.E. 2562

www.scbam.com/en/annouce/announce-09082019/
Announced on 9 August 2019
SCB Asset Management Company Limited

Fletchsmile, 13th of the Istari wizards - Wandered Middle Earth for centuries and chose Thailand.
Later discovered BigMango forum Thailand: bigmango.boards.net/ and www.bigmango.club
"Do not meddle in the affairs of wizards, for they are subtle and quick to anger" (LOTR)

rgs2001uk Moderators Posts: 15,339 Likes: 11,271	Witholding Tax on Dividends Oct 3, 2019 20:40:26 GMT 7 Quote Select Post Deselect Post Link to Post Back to Top Post by rgs2001uk on Oct 3, 2019 20:40:26 GMT 7 Dont need the hassle thank you, will invest elsewhere, i will take a hit on the exchange rate for better performance and choice elsewhere.
	worthless scum

Fletchsmile
Wizard

Posts: 4,368

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Witholding Tax on Dividends Oct 4, 2019 14:50:29 GMT 7

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Post by Fletchsmile on Oct 4, 2019 14:50:29 GMT 7

Oct 3, 2019 20:40:26 GMT 7 rgs2001uk said:

Dont need the hassle thank you, will invest elsewhere, i will take a hit on the exchange rate for better performance and choice elsewhere.

For me I think some Thai equities are important.

We've seen in the last 5 years how a nice looking 7% p.a. return on a GBP portfolio gets wiped out by a 30% appreciation in THB vs GBP. Result: someone's net worth is going down if they're living off their portfolio

7% is my hurdle rate I set overall for portfolios in aggregate. I hope for more but don't bank on it. So the risk is if I hit that in GBP terms it may not be funding life in Thailand.

Froma tax point of view:

10% WHT on dividends is minimal. The UK and many developed markets are actually more, and the dividend credits in those DM can't always be reclaimied.

Thailand still remains favourable as the WHT can be reclaimed if no other income tax + no capital gains tax either.

Plus of course we can just select non-dividend paying units and hence Thai funds become effectively income and capital gains tax free.

rgs2001uk
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Witholding Tax on Dividends Oct 4, 2019 20:22:25 GMT 7 Fletchsmile likes this

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Post by rgs2001uk on Oct 4, 2019 20:22:25 GMT 7

^^^^^ Fletch, I agree with everything you say, my problem is my aversion to paperwork and bureaucracy.

Thailand moves forward and will eventually be caught up is such crap as CRS and TIN, etc etc.

One day the penny will drop and the Thai taxman will catch on, I am thinking of the FIFO types, coming to Thailand for its (at the moment) lackadaisical attitude towards tax on overseas earnings. Dont think Bluey the truck driver working in the outback of Wogga Wogga will be coming here if he is going to be taxed.

Despite the nonsense and horror stories I read elsewhere, I dont know of anyone who has ever been taxed on overseas remittances into Thailand, should they ever wake up and put the onus on us to prove it wasnt earned in the last tax year, I would expect an exodus, out learnered German friend included, LOL

.

Whatever happened to their capital gains tax and inheritance tax law updates?

worthless scum

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Post by Fletchsmile on Oct 3, 2019 15:34:22 GMT 7

Post by rgs2001uk on Oct 3, 2019 20:40:26 GMT 7

Post by Fletchsmile on Oct 4, 2019 14:50:29 GMT 7

Post by rgs2001uk on Oct 4, 2019 20:22:25 GMT 7

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