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Governments around the world, with help from banks, are

imposing more and more laws and regulations on money

flows between accounts and countries, with heavy punishments

for what they define as "money laundry", which defer from country to country

(for example, in thailand tax evasion is not considered a reason for

money laundry, but in the U.S. and EU , laundrying money from tax evasion can lead

to money laundry persecution with up to 10 years jail punishment !!).

 

So it is very important to check one's legal position when

comes to money transfers or even stock trading.

That is why i would like to ask here about the thai law regarding capital gains

from other countries.

 

The thai law states that capital gains, for thai tax resident (anyone who

stayed in thailand for more than 6 months in a year, regardless the visa),

WON'T BE TAXED if the profit was not transfer to thailand in that same year in was gained.

I tried to understand what it means, even with the help of tax expert, but not sure.

For example, let's say i purchased 100K worth of security in one year. than the

investment gained 200% in few months , and now it is worth 300K.

So if transfered into thailand, in that same year, 150K, will there be capital

gain tax on that amount? and what about the other 50K amount

which i did not transfer into thailand in that same year?

will they become tax free (in thailand) and they can be sent to thailand, tax free, 

in the next year / years?

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23 minutes ago, SCOTT FITZGERSLD said:

For example, let's say i purchased 100K worth of security in one year. than the

investment gained 200% in few months , and now it is worth 300K.

So if transfered into thailand, in that same year, 150K, will there be capital

gain tax on that amount? and what about the other 50K amount

which i did not transfer into thailand in that same year?

 

I you transfer 150K into Thailand this sum consists of the 100K you invested and 50K profit. According to the law you have to pay tax over the 50K.  If you made (earned) the 100K you invested in that same year also you will have to pay tax over 150K.

 

If you transfer money into Thailand it is better to only transfer money that was made in previous years.

 

 

 

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8 minutes ago, dimitriv said:

 

I you transfer 150K into Thailand this sum consists of the 100K you invested and 50K profit. According to the law you have to pay tax over the 50K.  If you made (earned) the 100K you invested in that same year also you will have to pay tax over 150K.

 

If you transfer money into Thailand it is better to only transfer money that was made in previous years.

 

 

 

really? that is interesting...but how will they know when i made it? will

they demand to show them all the bank records?

AND what if i open a trading account in a thai bank, will the same

ONE YEAR = TAX apply?

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Before the end of the  Thai Tax year (calendar) , place the money with your currency service, or in an isolated account, and get them to send to Thailand  it at the start of the next year?

I think if in Thailand the 50k would be taxed as income if you were here more than 180days. (I've only glanced at that subject though).

 

 

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how about buying foreign investment / securities via thai banks?

 

i saw that SCB offer offshore investment account, with quite

god fees, and access to stock markets in many countries.

does anyone know if those foreign trading accounts are allowed also for

foreigners on retirement extention? and if other thai banks offer them?

http://www.scbs.com/en/product/product-offshore/

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1 hour ago, SCOTT FITZGERSLD said:

really? that is interesting...but how will they know when i made it? will

they demand to show them all the bank records?

AND what if i open a trading account in a thai bank, will the same

ONE YEAR = TAX apply?

 

The problem with Thailand is that until very recently, or maybe even now, they do not exchange bank info with other countries. So as a foreigner living in your own country you could hide money in Thailand. I think the law is still based on that. They don't know what happens abroad. I think this is changing slowly. When opening a bank account they asked if I am a US citizen. It seems that they started to exchange information. At least with the US.

 

If you have some savings, enough to live for a year this system is very nice. The money you make this year you keep outside Thailand. And transfer next year if you need it for living expenses. You pay no tax this way.

 

This system is like heaven. It allows you to pay no tax. It is already nice that it works this way. I would not try to push the limits more. 

 

If you have a trading account in Thailand it is not foreign income.

 

I am not a specialist in tax matters. In my own country profits you make with investments can be taxed in different ways. If you are passive it can be income from investment, if you are trading all day and it is like a job they can tax it as salary (much higher). I don't know what they do with this in Thailand.

 

 

 

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There is no capital gains tax in Thailand, gains from the sale of immovable property are taxed at the standard rates of income tax.

 

Any income, not just capital gains, that is transferred by tax residents into Thailand during the year it was earned potentially is liable to tax. In practise the tax authorities are not set up to capture that income, nor do they appear to be interested in it. Part of the problem is trying to separate income earned in any particular year, from existing savings, did the funds come from the top of the stack or the bottom of the stack, most would argue from the bottom.

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18 minutes ago, saengd said:

Part of the problem is trying to separate income earned in any particular year, from existing savings

THAT is indeed the problem, how do they decide / search if it was earned the same year it was sent?

from what i read, a tax resident in thailand must pay taxes on income earned ALL OVER THE WORLD, besides capital gains .

so the question is, what is defined as capital gains? say i hold a stock for two years, than sell at

a profit and transfer to thailand the same year i sold - will it be considered taxable income?

AND how will they decide if it was earned the same year?

ohhh, thailand, so easy, and yet so blurry.

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4 minutes ago, SCOTT FITZGERSLD said:

THAT is indeed the problem, how do they decide / search if it was earned the same year it was sent?

from what i read, a tax resident in thailand must pay taxes on income earned ALL OVER THE WORLD, besides capital gains .

so the question is, what is defined as capital gains? say i hold a stock for two years, than sell at

a profit and transfer to thailand the same year i sold - will it be considered taxable income?

AND how will they decide if it was earned the same year?

ohhh, thailand, so easy, and yet so blurry.

 

You are really making it too complicated. Just keep the money abroad 😉   Or use an investment account or bank account abroad with a debit credit card. Use that to pay in the Big-C, in a restaurant. Your money goes directly from the foreign bank account to the supermarket or restaurant.  It will never be on your Thai bank account. There is no way they can track this.

 

 

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Just now, dimitriv said:

 

You are really making it too complicated. Just keep the money abroad 😉   Or use an investment account or bank account abroad with a debit credit card. Use that to pay in the Big-C, in a restaurant. Your money goes directly from the foreign bank account to the supermarket or restaurant.  It will never be on your Thai bank account. There is no way they can track this.

 

 

problem is, as you mentioned, that banks abroad report foreign accounts to the country where i am tax resident. Banks abroad demand to know where i am tax resident and than report my account to that country. Thailand does not report. not yet. that is why i prepfer to move to thailand, to register thailand as

my tax residency and than to feel more free about my bank accounts abroad.

it is not me who make things complicated, it is the global system who becomes more and more

like financial concentration camp.

even using your card to pay in another country might be considered, technically, money laundry.

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2 minutes ago, SCOTT FITZGERSLD said:

problem is, as you mentioned, that banks abroad report foreign accounts to the country where i am tax resident. Banks abroad demand to know where i am tax resident and than report my account to that country. Thailand does not report. not yet. that is why i prepfer to move to thailand, to register thailand as

my tax residency and than to feel more free about my bank accounts abroad.

it is not me who make things complicated, it is the global system who becomes more and more

like financial concentration camp.

even using your card to pay in another country might be considered, technically, money laundry.

 

Banks exchange the account balance you have at the end of the year. If they report this to Thailand this info will be useless for them with current laws. You are allowed to have money abroad. There is no wealth tax. The balance can grow each year. But for Thailand this is not important because this money is abroad and not taxed anyway. So they will only receive useless data.

 

I am planning to follow the rules. I have enough savings to survive for a year. So money I make I can keep abroad for at least a year. 

 

I don't know where you are from. But some banks in my home country told me that they will cancel my accounts when I officially move to a country outside the EU. They claim that administrative expenses (reporting the account balances to countries all over the world) are too high. Other banks had no problems with this.

 

 

 

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Seems hard to enforce the law on anything other than a property sale with funds repatriated immediately.  A brokerage account (especially with margin) would make it impossible to track.

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8 hours ago, SCOTT FITZGERSLD said:

THAT is indeed the problem, how do they decide / search if it was earned the same year it was sent?

from what i read, a tax resident in thailand must pay taxes on income earned ALL OVER THE WORLD, besides capital gains .

so the question is, what is defined as capital gains? say i hold a stock for two years, than sell at

a profit and transfer to thailand the same year i sold - will it be considered taxable income?

AND how will they decide if it was earned the same year?

ohhh, thailand, so easy, and yet so blurry.

There is no global income requirement along the same lines as the US system, the taxation implications only exist when the income is remitted.

 

Once again, there is no capital gains tax in Thailand.

 

If you make profit overseas on a stock you've held for two years and then you remit funds to Thailand, those are two separate actions that are not necessarily linked. It is most likely in that scenario that the funds you remitted were savings and it was pure coincidence that you sold stock at the same time as the remittance was received. The most important part of the picture is that the Thai tax authorities are not actively pursuing this type of tax income, nor are they geared up to do so. You really are over thinking the issue by trying to overlay the functioning of the US Revenue system, onto your circumstances in Thailand.

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On 10/18/2019 at 1:45 AM, saengd said:

There is no global income requirement along the same lines as the US system, the taxation implications only exist when the income is remitted.

 

Once again, there is no capital gains tax in Thailand.

YES THERE IS a global income tax requirement in thailand.

maybe you want to check for updates on line.

 

and yes there is capital gain tax in thailand. 

a thai tax resident will pay 37% on his profits from stock trading, but limits apply.

 

seems like you dont know what you are talking about.

thailand tax laws are ever changing, like in most other countries.

 

Thailand taxes worldwide income, just as the US does. But unlike the US, only residents are taxed on their worldwide income while non-residents are taxed only on the income earned in Thailand.

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6 hours ago, SCOTT FITZGERSLD said:

YES THERE IS a global income tax requirement in thailand.

maybe you want to check for updates on line.

 

and yes there is capital gain tax in thailand. 

a thai tax resident will pay 37% on his profits from stock trading, but limits apply.

 

seems like you dont know what you are talking about.

thailand tax laws are ever changing, like in most other countries.

 

Thailand taxes worldwide income, just as the US does. But unlike the US, only residents are taxed on their worldwide income while non-residents are taxed only on the income earned in Thailand.

Your questions have been well covered by other posters but as usual you are creating arguments where none need exist. 

You ask a question, wait for feedback and then proceed to give your view irrelevant of what you have been told even when, in the past, you have been proved wrong.

 

Nothing on Thai tax law has changed that much in the past year. If you really want a cut and dried solution I suggest you find another country other than Thailand to move to. I could imagine that the the lack of certainty prevalent in every facet of Thai bureaucracy will probably end up driving you insane........Beating A Dead Horse Pictures, Images & Photos | Photobucket 

Thailand has said it will adopt CRS at some point in the future so if your idea is to avoid that reporting that is another reason to look elsewhere.......

 

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