[Q] Mutual funds, index, shares investing and SSO

[prettyawsm]

Hi everyone and sorry in advance if noob questions. This is probably also best for those who actually live and work here legally for some time.

 

I've been living and working here for some time already i also got my bachelors here as well. Thai life of a young foreigner been great and all but it's time to think about the future i guess as i'm growing older. Been looking at trading/investing and other stuff recently and can't wrap my head around it all. I looked at kbank and scb bank apps and both offer investing/index/mutual funds and so on and once you proceed it would tell that its only for Thai nationals. However i have an idea to visit the bank and see if it will lead me to anywhere. I've also read about taxation here and so for local laws foreigners are suppose to pay 3/7 taxes of received dividends. This is a half of what i may actually earn lets say??

 

I also have a feeling that it is not really a good idea to work internationally. For example with JPP Morgan?

 

- Anyone of you having a good time with anything said above?

 

As i worked for some years there's quiet a sum on my SSO. Anyone can actually tell what benefits it can bring? I'd rather take that money out and keep elsewhere. Does it also go towards pension?

 

 

Sorry for the long post and thanks for kind answers in advance, cheers

 

[ChouDoufu]

the major banks have a limited selection of mutual funds available.  many have high front/back end fees, along with high expenses.  foreigners no problem, just visit the local bank to set up the investing account.

 

most mutuals pay no dividends directly to you.  any dividends paid to the fund should be reflected in the increased (well, hopefully) share price.

 

dividends, if you receive any, are taxed at 10%, deducted before payment.  you can apply for a refund when you file taxes, if you bother to file taxes.

 

capital gains are not taxed in thailand.  (wonder who writes these laws?)  you may be required to pay tax in your home country on this income.  the us foreign income exclusion does not apply to passive income.

 

bangkok bank can set you up with a trading account (foreigners okay!) through their bualuang trading company.  (remember to include trading account on your annual FBAR)  you can only buy thai stocks.  limited number of companies available, and prices easily moved by big poohbahs.

 

you'll do much better keeping your money in a non-thai brokerage.

[Oxx]

OP, are you an American? If so, you will be taxed on your worldwide income, but can relatively easily open a brokerage account in the US which will give access to a wide range of funds.

 

If not, then by investing outside Thailand you can avoid all income taxes, but will find it difficult to invest in a wide range of mutual funds.  You would, however have access to a wide range of ETFs (index funds), and to UK investment trusts.

 

Thai mutual funds are very expensive, often with front/back end charges as well as steep annual charges.  They are generally not attractive, though they are convenient.  However, if you think you might move to another country in the future, you have to think about selling all your investments, getting the money out of Thailand, and starting investing all over again.

 

Whilst individual banks-related asset management companies offer a small range of (mostly) their own funds which you can buy through their bank branches, you get a much wider range of available funds if you open a brokerage account.  There's a list of brokers at https://www.set.or.th/set/memberlist.do?language=en&country=US  The ones I'd suggest you look at first are Maybank, Globlex, KGI, Phillip, Zmico.  With these accounts you can also buy individual stocks.  At least one of these allows you to buy overseas stocks too.  Not sure, however, how easy it is for Americans to open such accounts given the onerous American reporting requirements.

[prettyawsm]

On 7/12/2020 at 5:50 PM, ChouDoufu said:

the major banks have a limited selection of mutual funds available.  many have high front/back end fees, along with high expenses.  foreigners no problem, just visit the local bank to set up the investing account.

 

most mutuals pay no dividends directly to you.  any dividends paid to the fund should be reflected in the increased (well, hopefully) share price.

 

dividends, if you receive any, are taxed at 10%, deducted before payment.  you can apply for a refund when you file taxes, if you bother to file taxes.

 

capital gains are not taxed in thailand.  (wonder who writes these laws?)  you may be required to pay tax in your home country on this income.  the us foreign income exclusion does not apply to passive income.

 

bangkok bank can set you up with a trading account (foreigners okay!) through their bualuang trading company.  (remember to include trading account on your annual FBAR)  you can only buy thai stocks.  limited number of companies available, and prices easily moved by big poohbahs.

 

you'll do much better keeping your money in a non-thai brokerage.

Oh okay. Do i then just stick around the SET and play around there?

[prettyawsm]

11 hours ago, Oxx said:

OP, are you an American? If so, you will be taxed on your worldwide income, but can relatively easily open a brokerage account in the US which will give access to a wide range of funds.

 

If not, then by investing outside Thailand you can avoid all income taxes, but will find it difficult to invest in a wide range of mutual funds.  You would, however have access to a wide range of ETFs (index funds), and to UK investment trusts.

 

Thai mutual funds are very expensive, often with front/back end charges as well as steep annual charges.  They are generally not attractive, though they are convenient.  However, if you think you might move to another country in the future, you have to think about selling all your investments, getting the money out of Thailand, and starting investing all over again.

 

Whilst individual banks-related asset management companies offer a small range of (mostly) their own funds which you can buy through their bank branches, you get a much wider range of available funds if you open a brokerage account.  There's a list of brokers at https://www.set.or.th/set/memberlist.do?language=en&country=US  The ones I'd suggest you look at first are Maybank, Globlex, KGI, Phillip, Zmico.  With these accounts you can also buy individual stocks.  At least one of these allows you to buy overseas stocks too.  Not sure, however, how easy it is for Americans to open such accounts given the onerous American reporting requirements.

No im not an American tho. Basically i'd only care if there are any taxes to be paid here in Thailand. Maybank seems to be a good go. Where do you invest, if i may ask?

[Oxx]

In Thailand I use KGI, but that's not a recommendation.  KGI was the only broker that was willing to take me as a client because I didn't have a work permit.  Even then, I believe I was only accepted because an existing client put in a word for me.

 

I have an account with Interactive Investor in the UK to hold funds, but I keep the balance below the UK Inheritance Tax threshold.  Nowadays, however, it's pretty much impossible to open a UK brokerage account if you're not UK resident.

 

My main account is in the US, with Interactive Brokers.  I use it to buy investment trusts and ETFs listed on the London Stock Exchange.  There can be death tax issues if you hold US assets/currency there.

 

I've previously used both Internaxx (Luxembourg) and Saxo (Singapore) for the same purpose.  Internaxx is the most expensive, but is, in my opinion, the best service and has the best website.  Unfortunately, I had to leave them because they demanded impossible proof of my wealth, so I was no longer able to add to the account.  (Who keeps 30 year old pay slips and tax returns?)