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[TPDH]

Hi

 

As a Thai resident, what US taxes does nonresident aliens (non citizens) have pay in the US when trading US stocks and US ETFs? And what tax related filings do we need to do in the US? 

 

From reading some of the sources here below it seems like the only tax we need to pay is the withholding tax on dividends of 15% (if broker follows the tax treaty) but that’s typically handled by the broker and not very relevant for most traders. Capital gains and interest is not taxed. Estate tax is not relevant unless after death. It also seems like we do not have to do any tax filings in the US. Is this all correct? If so, then US taxes is not really an issue or a factor for Thai residents trading US stocks and ETFs. 

 

https://www.bogleheads.org/wiki/Nonresident_alien_taxation

https://www.forbes.com/sites/greatspeculations/2018/08/22/how-to-save-u-s-taxes-for-nonresident-aliens/?sh=5e2af31d695d

 

Edited December 6, 2020 by TPDH

[Barnabe]

Ignore this, didn't read the question properly

Edited December 6, 2020 by Barnabe

[Thailand J]

You only need to file a tax form if the withholding is not correct.  If your broker withheld too much or not withheld enough, you will need to apply for a tax number to file form 1040NR to get a refund or pay the difference.

Estate tax exemption for non-resident non-citizen is only $60000. Anything above that is subjected to up to 40% tax.

1 hour ago, TPDH said:

Estate tax is not relevant unless after death. It also seems like we do not have to do any tax filings in the US. Is this all correct? If so, then US taxes is not really an issue or a factor for Thai residents trading US stocks and ETFs. 

 

[TPDH]

12 minutes ago, Thailand J said:

You only need to file a tax form if the withholding is not correct.  If your broker withheld too much or not withheld enough, you will need to apply for a tax number to file form 1040NR to get a refund or pay the difference.

Estate tax exemption for non-resident non-citizen is only $60000. Anything above that is subjected to up to 40% tax.

 

Ok but everything else is correct right? I’m planning on starting to trade US stocks and ETFs but was worried about tax implications or the need to make filings or other complications but that doesn’t seem to be the case. 
 

Taxes like the estate tax upon my death is not a major factor for me. 

[Thailand J]

40% estate tax is high but my investments in US index funds are up more than 40% since January 2019...in just 2 years.

[JimGant]

On 12/6/2020 at 8:34 PM, TPDH said:

I’m planning on starting to trade US stocks and ETFs but was worried about tax implications or the need to make filings or other complications but that doesn’t seem to be the case. 

You're good to go. The US likes foreign investors and likes to keep things simple, like withholding at source. Just make sure your W-8BEN is on file with your broker to get the treaty 15%; otherwise, you'll be subject to the standard 30% withholding at source.