Capital gains tax

[dj230]

What's the tax you pay on long and short term capital gains on US equities in Thailand? 

Edited July 3, 2022 by dj230

[gamb00ler]

Since you specifically asked about both long and short term tax rates, I'll assume you're a US citizen and are inquiring about US taxation.

 

If my assumption is correct your tax rates on capital gains are not different because you live in Thailand.

 

https://www.irs.gov/taxtopics/tc409

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

 

Edited July 3, 2022 by gamb00ler

[dj230]

9 hours ago, gamb00ler said:

Since you specifically asked about both long and short term tax rates, I'll assume you're a US citizen and are inquiring about US taxation.

 

If my assumption is correct your tax rates on capital gains are not different because you live in Thailand.

 

https://www.irs.gov/taxtopics/tc409

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

 

If you get a business visa and open an account in Thailand, wouldn't you be paying taxes in Thailand? 

 

My accountant says if I stay overseas for a certain period, I'd technically have to pay taxes overseas but said other than that they aren't aware of taxes in Thailand as they only do Canadian taxes.

 

Really curious as Canadian taxes are fairly high, around 50% of capital gains are taxable at 50% and short term gain are 100% are taxable at around 50%.

 

 

[gamb00ler]

You should research the rules that CRA uses to determine your tax residence.

 

You can start here: 

https://serbinski.com/working-in-usa/canadian-residence-definition#:~:text=For Canadian income tax purposes,is a question of fact.

 

[timendres]

For a US citizen, you pay your normal taxes on capital gains in the US.

 

If the money earned is not transferred into Thailand during the year that it is earned, but in a later year, it is considered "savings" and it not taxed when transferred to Thailand. However, if the money earned is transferred into Thailand during the same year that it is earned, then it is considered income and taxed accordingly. In other words, the money you transfer to Thailand should always come from prior years' earnings to avoid income tax.

 

Also, if you do actually have to pay income tax in Thailand on that money, then in theory, you can deduct this tax paid from the taxes owed to the US government. But I believe this only applies if you can pass the "foreign residence" test. For example, since my income in Thailand is taxed by the Thai government, I do not need to pay income tax on that income to the US government.