Investing in USA stocks while working in Thailand

[DjChris28]

Hello,

 

So I just saw this on Bank of Thailand website:

https://www.bot.or.th/English/PressandSpeeches/Press/2019/Pages/n6662.aspx

 

2. Investment in foreign securities

         • Retail investors will be allowed to invest up to USD 200,000 per year in foreign securities, without having to invest via a Thai intermediary institution. Previously, they would need to meet a specified criteria in terms of asset ownership in order to invest directly. 

 

Does this mean now that I can directly send money using SWIFT from an SCB bank account for example to some broker like Interactive Brokers without any hassle?

 

I've been rather annoyed that i'm being offered a job in Thailand with a good pay per month, but I have no way to invest well with it. SET offers a bad return on investment. House price about 3-5% per year increase. If I send money back home to my country in Australia, then out to a USA broker from my Australia bank account, Australia will make me a tax resident most likely and then I have to pay high taxes anyway instead of Thailand's lower tax rate.

[William Osborne]

Why would Australia make you a tax resident for sending money there if you are living/working in Thailand  ?

 

You should be able to send money to your broker via any bank and will have to fill out WBEN (via your broker) if you want to trade US stocks determining where you are a tax resident...

 

[DjChris28]

4 hours ago, William Osborne said:

Why would Australia make you a tax resident for sending money there if you are living/working in Thailand  ?

 

You should be able to send money to your broker via any bank and will have to fill out WBEN (via your broker) if you want to trade US stocks determining where you are a tax resident...

 

 

Sorry, I don't think I explained this well.

 

So, this is the scenario:

a) Start working in Thailand for thai employer.

b) Setup Interactive Brokers account or any US broker that accept SWIFT as funding for account.

c) Go to Siam Commerical Bank and give them SWIFT details to send money to my Broker account.

d) Siam Commercial Bank will then say, "Sorry, you can only send money back to your own bank account in your country, not an overseas stock broker".

e) I then add my bank details for my bank back home in Australia.

 

f) After working a year or so in Thailand, I decide to send my savings back home.

g) I then forward the money I sent back to my home back account onwards to fund my US broker account.

h) I buy USA shares

i) I then recieve a phone call or email from the tax department here in Australia who say "We have detected a large money transfer into your Australian bank account, you are receiving income and now you are an Australian resident for tax purposes". Little do they understand that the company is not paying into my Australian bank account and I'm just trying to buy USA shares, that is all and need to transfer money through my australian bank account as that's the only place I can send it to from thailand.

j) Australia also tax me at tax time and I get a higher tax rate.

[TallGuyJohninBKK]

What about sending your funds out of Thailand with a non-bank transfer service like DeeMoney? In the U.S., their list of recipient financial institutions includes Charles Schwab and a couple other U.S brokerage houses, though I'm not sure if IB is on their list.

 

[DjChris28]

9 minutes ago, TallGuyJohninBKK said:

What about sending your funds out of Thailand with a non-bank transfer service like DeeMoney? In the U.S., their list of recipient financial institutions includes Charles Schwab and a couple other U.S brokerage houses, though I'm not sure if IB is on their list.

 

Thanks, that might be an option.

[William Osborne]

You probably need to get advice if your liable for tax in Oz or not whilst working overseas.....its pretty clear in europe, if your out of the country for xx days you are not a tax resident so can send money back home without being taxed regardless of amount..

 

[Thailand J]

You may not be able fund IBKR via Deemoney since UMB Bank is not on Deemoney's list.
You should be able to fund Schwab International account ($25,000 min to open, no monthly fee) since Bank of NY Mellon is on Deemoney's list.
Those are the bank accounts the brokerage accounts came with, respectively.
You can link Schwab and IBKR and move money online. To avoid long holding period, goto Schwab to push money into IBKR, instead of going to IBKR to pull money from Schwab.

 

[kwonitoy]

Why not open an offshore account to deposit your wages in?

I use HSBC offshore, money transfered from SCB. 

Then from HSBC to my IB account.

Or try Standard Bank in the Channel Isle, last time I looked an account could be opened for 5,000 USD, might have changed by now, but worth a look.

[Thomas J]

 

 

On 1/11/2020 at 10:55 PM, DjChris28 said:

Hello,

 

DJchris28,

 

You could either keep your money invested in a U.S. bank/brokerage account and transfer back to the USA.  You can also open an account with numerous brokerage houses like Schwab, in Hong Kong, or there are some others in both Hong Kong and Singapore.  Citibank also has a dual currency account.  U.S. dollars and Baht.  You can deposit your baht and have it invested in the funds they offer or convert the baht to USD. 

[yankee99]

In my experience if you have a work permit you can send money anywhere via swift from Thailand online. 

[Paiboon the Great]

“you are receiving income and now you are an Australian resident for tax purposes” - you’re answer doesn’t make any sense.

 

Firstly, receiving money to an Australian bank account does not make you a resident of Australia. 
 

Secondly, residency is determined on a facts and circumstances basis on the time spend in the country and secondary factors such as maintaining a home or having your family (wife kids etc) there.
 

Thirdly, if you are a resident of Australia, it will not be because of transferring money to an account, and if you are a resident, you are required to pay tax on your worldwide income. This will Include your Thailand salary income. 

 

I don’t think that you are a resident of Australia and the fact of transferring money to an Australian back account is not part of the requirements for residency. 

[bbabythai]

On 1/11/2020 at 10:55 PM, DjChris28 said:

will make me a tax resident most likely and then I have to pay high taxes

I think this assumption is incorrect and needs checking with an oz accountant. Once you are a non resident of oz for tax purposes I think that they will not change it in the circumstances you describe. You are clearly working and living in oz- end of story. 
 

actually you’re in a good situation for many reasons. High salary from one of the strongest currencies in SEAsia. Send to oz with good conversions. Then buy us shares using oz trading platform. If oz$ continues to tank your portfolio rises along with your share price.  When you sell your shares you don’t have to pay ato taxes bc your a non resident. The risk is that you buy and the oz$ goes up and shares crash. I’m waiting for this to be honest 

[MadMuhammad]

22 hours ago, Paiboon the Great said:

“you are receiving income and now you are an Australian resident for tax purposes” - you’re answer doesn’t make any sense.

 

Firstly, receiving money to an Australian bank account does not make you a resident of Australia. 
 

Secondly, residency is determined on a facts and circumstances basis on the time spend in the country and secondary factors such as maintaining a home or having your family (wife kids etc) there.
 

Thirdly, if you are a resident of Australia, it will not be because of transferring money to an account, and if you are a resident, you are required to pay tax on your worldwide income. This will Include your Thailand salary income. 

 

I don’t think that you are a resident of Australia and the fact of transferring money to an Australian back account is not part of the requirements for residency. 

Australia has a tax treaty in place with Thailand to avoid double taxation, wouldn’t  this come under that legislation?