eToro & Capital Gains Tax in Thailand

[ShwetaMenon04]

Hi everyone,

 

I'm interested in trading on eToro and I live in Thailand. I wanted to understand a bit more regarding the capital gains tax upon withdrawal for a foreigner working & paying income tax in Thailand. Can anyone please shed more light on this area? I want to know if I should be declaring these gains or if it is automatically taxed at the end of the year.

 

(For context, I'm investing in the US Stock Market so it is subject to capital gains tax)

 

Thank you!

[Neeranam]

29 minutes ago, ShwetaMenon04 said:

Hi everyone,

 

I'm interested in trading on eToro and I live in Thailand. I wanted to understand a bit more regarding the capital gains tax upon withdrawal for a foreigner working & paying income tax in Thailand. Can anyone please shed more light on this area? I want to know if I should be declaring these gains or if it is automatically taxed at the end of the year.

 

(For context, I'm investing in the US Stock Market so it is subject to capital gains tax)

 

Thank you!

Are you working and paying tax here already? If not, I guess you would pay in the US, if you are from there.

[ShwetaMenon04]

3 minutes ago, Neeranam said:

Are you working and paying tax here already? If not, I guess you would pay in the US, if you are from there.

Yes I am working and paying tax in Thailand and I am not from the US. 

[SCOTT FITZGERSLD]

Anyone who stay in thailand for more than 180 days in a year, regardless of the visa or no visa , is

considered a thai tax resident .

than you must pay taxes on any income generated in thailand, but NOT on income generated outside

of thailand. so if your eTORO account is not in thailand, you do not have to pay taxes in thailand on

your profits from this account, and also you DO NOT have to report on your account or activity there.

however, if you bring those profits to thailand IN THE SAME YEAR  you earned them, than you will have to pay

taxes on those profits in thailand.

for example, if you earned 10000 USD on an investment which you bought on october 2020 and sold in november 2020, and you sent those 10000 USD to thailand in december 2020, than you will have to report and pay tax on this gain.

but if you just waited few days and sent the money to thailand on january 2021, than you will not have to pay tax

on this gain, because you earned it last year.

this of course opens the gate to many interpretations and arguments.

and finally, i advice to you NOT to trade on eTORO. much better and safer platform is AMERITRADE. they

just opened recently the door also for residents of thailand.

[ShwetaMenon04]

7 hours ago, SCOTT FITZGERSLD said:

Anyone who stay in thailand for more than 180 days in a year, regardless of the visa or no visa , is

considered a thai tax resident .

than you must pay taxes on any income generated in thailand, but NOT on income generated outside

of thailand. so if your eTORO account is not in thailand, you do not have to pay taxes in thailand on

your profits from this account, and also you DO NOT have to report on your account or activity there.

however, if you bring those profits to thailand IN THE SAME YEAR  you earned them, than you will have to pay

taxes on those profits in thailand.

for example, if you earned 10000 USD on an investment which you bought on october 2020 and sold in november 2020, and you sent those 10000 USD to thailand in december 2020, than you will have to report and pay tax on this gain.

but if you just waited few days and sent the money to thailand on january 2021, than you will not have to pay tax

on this gain, because you earned it last year.

this of course opens the gate to many interpretations and arguments.

and finally, i advice to you NOT to trade on eTORO. much better and safer platform is AMERITRADE. they

just opened recently the door also for residents of thailand.

Hi Scott

 

Thanks so much for the detailed reply.

 

When you say "opens the gate to many interpretations and arguments?" - can you clarify more on this please? I just want to ensure there's not going to be any sort of tax evasion issues.

[userabcd]

8 hours ago, SCOTT FITZGERSLD said:

Anyone who stay in thailand for more than 180 days in a year, regardless of the visa or no visa , is

considered a thai tax resident .

than you must pay taxes on any income generated in thailand, but NOT on income generated outside

of thailand. so if your eTORO account is not in thailand, you do not have to pay taxes in thailand on

your profits from this account, and also you DO NOT have to report on your account or activity there.

however, if you bring those profits to thailand IN THE SAME YEAR  you earned them, than you will have to pay

taxes on those profits in thailand.

for example, if you earned 10000 USD on an investment which you bought on october 2020 and sold in november 2020, and you sent those 10000 USD to thailand in december 2020, than you will have to report and pay tax on this gain.

but if you just waited few days and sent the money to thailand on january 2021, than you will not have to pay tax

on this gain, because you earned it last year.

this of course opens the gate to many interpretations and arguments.

and finally, i advice to you NOT to trade on eTORO. much better and safer platform is AMERITRADE. they

just opened recently the door also for residents of thailand.

See this quoted many times that bringing money into Thailand the year after it was earned and no taxes need to be paid.

 

Except for it being quoted in some of the accounting firms handbooks is there anywhere in the actual revenue code which explicitly confirms this statement.

 

Was reviewing Sherrings personal tax guide on their website and there is no mention of this no tax paid if earnings, income, interest, cap gains are brought into Thailand in the year after they are earned.

Edited January 6, 2021 by userabcd

[ShwetaMenon04]

55 minutes ago, userabcd said:

See this quoted many times that bringing money into Thailand the year after it was earned and no taxes need to be paid.

 

Except for it being quoted in some of the accounting firms handbooks is there anywhere in the actual revenue code which explicitly confirms this statement.

 

Was reviewing Sherrings personal tax guide on their website and there is no mention of this no tax paid if earnings, income, interest, cap gains are brought into Thailand in the year after they are earned.

I see, anyway of finding out where this statement can be specified clearly?

 

However, in your opinion, do you still need to pay capital gains tax on etoro profits made in Thailand?

[userabcd]

I would say no as long as you do not bring the gains into Thailand in the same year they were derived based on what most of the accounting firms state.

 

See this 2020 up-date of deloitte Thailand highlights 2020 in the section on personal taxation (www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-thailandhighlights-2020.pdf)

 

You would also need to consider the tax rules of your home country and the jurisdiction where the dividends, cap gains are being derived.

[ShwetaMenon04]

1 hour ago, userabcd said:

I would say no as long as you do not bring the gains into Thailand in the same year they were derived based on what most of the accounting firms state.

 

See this 2020 up-date of deloitte Thailand highlights 2020 in the section on personal taxation (www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-thailandhighlights-2020.pdf)

 

You would also need to consider the tax rules of your home country and the jurisdiction where the dividends, cap gains are being derived.

 

I see, I'll have a look at that link. Thanks so much for sharing. 

 

By any chance, do you or have you used eToro?

[ShwetaMenon04]

12 hours ago, ShwetaMenon04 said:

Hi Scott

 

Thanks so much for the detailed reply.

 

When you say "opens the gate to many interpretations and arguments?" - can you clarify more on this please? I just want to ensure there's not going to be any sort of tax evasion issues.

 

19 hours ago, SCOTT FITZGERSLD said:

Anyone who stay in thailand for more than 180 days in a year, regardless of the visa or no visa , is

considered a thai tax resident .

than you must pay taxes on any income generated in thailand, but NOT on income generated outside

of thailand. so if your eTORO account is not in thailand, you do not have to pay taxes in thailand on

your profits from this account, and also you DO NOT have to report on your account or activity there.

however, if you bring those profits to thailand IN THE SAME YEAR  you earned them, than you will have to pay

taxes on those profits in thailand.

for example, if you earned 10000 USD on an investment which you bought on october 2020 and sold in november 2020, and you sent those 10000 USD to thailand in december 2020, than you will have to report and pay tax on this gain.

but if you just waited few days and sent the money to thailand on january 2021, than you will not have to pay tax

on this gain, because you earned it last year.

this of course opens the gate to many interpretations and arguments.

and finally, i advice to you NOT to trade on eTORO. much better and safer platform is AMERITRADE. they

just opened recently the door also for residents of thailand.

 

Hi Scott,

 

Another question relating to your answer. What if you made the profits from your investment on eToro while in Thailand and would like to have it transferred to your Thai bank account? Is it necessary to still pay & declare capital gain tax?

[SCOTT FITZGERSLD]

2 hours ago, ShwetaMenon04 said:

 

 

Hi Scott,

 

Another question relating to your answer. What if you made the profits from your investment on eToro while in Thailand and would like to have it transferred to your Thai bank account? Is it necessary to still pay & declare capital gain tax?

you can find the answer to your question in my original reply.

anyway i am not a tax expert, for more details you better contact a thai law office, they

might reply few emails for free.

[userabcd]

11 hours ago, ShwetaMenon04 said:

 

 

Hi Scott,

 

Another question relating to your answer. What if you made the profits from your investment on eToro while in Thailand and would like to have it transferred to your Thai bank account? Is it necessary to still pay & declare capital gain tax?

Of course you would need to pay tax if it was not taxed elsewhere and it was deposited in Thailand in the same year it was derived and of you were tax resident in Thailand (180 days or more)

 

Take a look a sherrings website on personal taxes.

Residence and source rules

Income sourced from abroad

Assessable taxable income

Tax compliance for residents

Long stay tourists income

Capital gains personal income tax.

 

If applicable may also need to refer to DTA with your home country to apply for tax relief from Thai taxes for certain categories of income, div and cap gains.

 

 

Edited January 7, 2021 by userabcd

[userabcd]

19 hours ago, ShwetaMenon04 said:

 

I see, I'll have a look at that link. Thanks so much for sharing. 

 

By any chance, do you or have you used eToro?

Sorry, no. Never heard of etoro before it was mentioned here.

[oceanbreeze851]

I live in the USA now but will be in Thailand shortly.I do invest in the USA market and anything I take out of my account is subject to capital gains except my Roth IRA. But my question to you is if you Had $100,000 in stocks and you made $10,000 as far as Thailand is concerned the $10,000 you take out is principle and the it is replace by the $10,000 profit. You are only required to pay tax once. 

[ballpoint]

I suggest anyone interested in the local tax laws download this guide from PWC.  It includes the following:

 

thai-tax2019-20-booklet-en-1.pdf (pwc.com)

[topt]

12 hours ago, userabcd said:

Of course you would need to pay tax if it was not taxed elsewhere and it was deposited in Thailand in the same year it was derived and of you were tax resident in Thailand (180 days or more)

What you mean like all those people who remit their pension payment every month...............

I know what you say is the theory but it is, currently anyway, nowhere near the reality.

[userabcd]

12 hours ago, topt said:

What you mean like all those people who remit their pension payment every month...............

I know what you say is the theory but it is, currently anyway, nowhere near the reality.

Suggest you first check the DTA between Thailand and your Home country if there is mention on how the pension or govt money paid is taxed.

Edited January 8, 2021 by userabcd

[topt]

5 hours ago, userabcd said:

Suggest you first check the DTA between Thailand and your Home country if there is mention on how the pension or govt money paid is taxed.

I am very well aware of the details thanks hence my observation. It has been discussed many times in the past  

[Neeranam]

What if I withdraw from etoro to my UK credit card. Then use said card here?