How a proposed tax on share trading will affect investors

[webfact]

 

By Thai PBS World’s Business Desk

 

The Finance Ministry is considering levying a financial transaction tax (FTT) on stock trading next year, but a decision will depend on economic conditions, Finance Minister Arkhom Termpittayapaisith revealed recently.

 

What is FTT?

 

The ministry is considering an FTT tax rate at 0.1 percent of transaction value on the seller, regardless of whether the transaction makes a profit or loss. Those who trade shares worth less than Bt1 million a month would be exempted, Arkhom said.

 

The Revenue Department has been assigned to study the pros and cons of the FTT, taking into account the government’s need for more revenue and its impact on investors.

 

Full story: https://www.thaipbsworld.com/how-a-proposed-tax-on-share-trading-will-affect-investors/

 

-- © Copyright Thai PBS 2021-12-27

 

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[bdenner]

Yep, that'll boost investor confidence!

[Tracyb]

They just keep sticking their thumbs in their eyes, don’t they!

[khunPer]

I'm happy to be so poor that I trade for less than one million baht SET stocks per month...????????

[tomazbodner]

1 hour ago, khunPer said:

I'm happy to be so poor that I trade for less than one million baht SET stocks per month...????????

Same here. But question - if you sell stock in Nasdaq, how are you taxed then? I've read about no tax if you don't transfer within the same calendar year, but if you do - how do you declare that, and what do you declare? Say you bought for the figure, 100 shares at 10$ 10 years ago. And they are 20$ a share now. So basically from 1000 to 2000$ over 10 years. What do you declare to Thai tax authorities?

[khunPer]

1 hour ago, tomazbodner said:

Same here. But question - if you sell stock in Nasdaq, how are you taxed then? I've read about no tax if you don't transfer within the same calendar year, but if you do - how do you declare that, and what do you declare? Say you bought for the figure, 100 shares at 10$ 10 years ago. And they are 20$ a share now. So basically from 1000 to 2000$ over 10 years. What do you declare to Thai tax authorities?

This tax is on SET (Stock Exchange of Thailand) selling-transactions, i.e. no tax when trading less than 1 million baht per month. It's easy to count in the data-systems and your passport number, when you reach 1 million baht for selling stocks in one month, you will probably be taxed on additional transactions together with the trading fees.

 

You are talking about capital gain, which is a different story. There is no tax on capital gains from SET-traded stocks, so that is also extremely easy to count.

 

If you are tax resident in Thailand, then all foreign income is income taxable in Thailand provided that you transfer the funds into Thailand during the same calendar year (same as tax year) as earned; however, some income might be covered by a DTA (Double Taxation Agreement) between two states.

 

If you for example pay withheld dividend tax on stocks traded on Nasdaq, the tax would likely be higher than the Thai dividend tax - i.e. 15 percent to 30 percent might be withheld in dividend tax by Nasdaq - so you will not be double taxed in Thailand, where the dividend tax is 10 percent. You might even be able to claim tax return from US, depending of the DTA, and that you transfer the dividends into Thailand within the same calendar year as it's earned, which in some cases might be worth doing to reduce taxation in one's home country.

 

If you pay capital gain tax in US you will not also pay capital gain tax in Thailand, provided you transfer the funds during the same calendar year as the capital gain is earned. If you transfer your capital gain during the following calendar year, or any later years, it's savings that are free from income taxation in Thailand...????