Stock market trades in Thailand to be taxed

[snoop1130]

 

The Thai cabinet decided today (Tuesday) to revoke a law, which has been in force for more than three decades, exempting stock market share trades from financial transaction tax.

 

Finance Minister Arkhom Termpittayapaisith said that the abrogation of the law means that all trading of stocks on the stock market, whether at a profit or loss, will be subject to a financial transaction tax of 0.1%.

 

He said that the government is expected to gain at least 15 billion baht a year from the tax, adding that the Council of State will have to draft a law to impose the tax. Share traders will be given a 3-month grace period before the law comesinto force, following its publication in the Royal Gazette.

 

Full Story: https://www.thaipbsworld.com/stock-market-trades-in-thailand-to-be-taxed/

 

-- © Copyright Thai PBS 2022-11-29

 

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[stoner]

bernie !!

[pegman]

4 hours ago, stoner said:

bernie !!

The Bern says " Not enough".

[Classic Ray]

Since the trading is really legalised gambling, this is really a gambling tax, can’t argue with that. 
 

it’s become very popular in this era of low interest rates discouraging saving as investment, and opening up of trading to the public.

[redwood1]

So do you get a .01 refund on losing trades?

[Srikcir]

If paying a government tax for a personal stock loss - wrong. Ever hear of stock volatility? The tax is in effect double jeopardy for the investor. But might boost less volatile bond sales.

 

If a new government tranaction tax is against the stock broker, brokers can adjust their charges to traders who place orders to buy/sell stocks, irrespective whether the trader gains or loses on subsequent trade. 

[HuskerDo2]

Is this just for trading on the Thai stock market? Where do they find these people making these types of decisions? No wonder they can't move up in the world as a country.

[ThaiNotes]

10 hours ago, snoop1130 said:

all trading of stocks on the stock market, whether at a profit or loss, will be subject to a financial transaction tax of 0.1%.

What does that actually mean? Each trade has two sides.  Will the buyer and seller both pay 0.1%? Will each pay 0.05%? Or will one side pay 0.1% and the other nothing?

 

(With the London Stock Exchange it's only the seller that pays 0.5% tax on each trade.  0.5% makes Thailand's 0.1% seem reasonable.)

 

Anyway, clear as mud.

[2009]

1 hour ago, Classic Ray said:

Since the trading is really legalised gambling, this is really a gambling tax, can’t argue with that. 
 

it’s become very popular in this era of low interest rates discouraging saving as investment, and opening up of trading to the public.

How is buying and selling assets gambling?

 

Is buying and selling houses gambling too in yours mind?

[Gknrd]

So for a 100,000 dollar trade 1000 dollars goes to the government when buying the stock. And whether a loss or gain you will be taxed when you sell!  So basically bend over when you buy and bend over when you sell.   

Preparation H sales among stock traders will go threw the roof.  

 

[HaoleBoy]

Should be taxed only for short-term trades (364 days or less) and nothing for long-term sale of stocks.  The day traders are the ones not paying any tax here.

[nigelforbes]

4 minutes ago, HaoleBoy said:

Should be taxed only for short-term trades (364 days or less) and nothing for long-term sale of stocks.  The day traders are the ones not paying any tax here.

I agree completely

[nigelforbes]

14 minutes ago, Gknrd said:

So for a 100,000 dollar trade 1000 dollars goes to the government when buying the stock. And whether a loss or gain you will be taxed when you sell!  So basically bend over when you buy and bend over when you sell.   

Preparation H sales among stock traders will go threw the roof.  

 

0.1% of 100,000 is not 1,000, it is 100.

[khunjeff]

I have no strong opinion about the tax itself, but am confused about the fact that the Cabinet has revoked a law, and the Council of State will draft a new one. Do the elected representatives in the Parliament have no role in deciding what the law will be? 

[Gknrd]

21 minutes ago, nigelforbes said:

0.1% of 100,000 is not 1,000, it is 100.

Exactly right. I was coming in to correct that and you beat me to it...

.1% is .001.  

Thanks

[stoner]

8 hours ago, pegman said:

The Bern says " Not enough".

could you imagine (hypothetically) the things that could be done if you taxed wall st like that. 

 

na stop thinking stupid stoner. 

[Gknrd]

I see a few new Benz in the driveways..  

 

[Purdey]

More interesting is that there was no warning. Just an announcement. This should hurt the current government in an election as they will be blamed by the rich, the middle class and the retired.

The SET is run like a casino for the small investor but some use it as another way to save and get income from dividends, which is always better than bank savings. They won't be hurt much but will see the government as taking their pension. 

[hotchilli]

3 hours ago, ThaiNotes said:

What does that actually mean? Each trade has two sides.  Will the buyer and seller both pay 0.1%? Will each pay 0.05%? Or will one side pay 0.1% and the other nothing?

 

(With the London Stock Exchange it's only the seller that pays 0.5% tax on each trade.  0.5% makes Thailand's 0.1% seem reasonable.)

 

Anyway, clear as mud.

Not bothered I won't partake in Thai stocks.

[Longwood50]

Does anyone know when they will start imposing a tax on the number of breaths of air someone takes during a day? 

Perhaps we can have a "dump" tax for each time a person sits on the toilet as well, 

 

 

[Dustdevil]

5 hours ago, Classic Ray said:

Since the trading is really legalised gambling, this is really a gambling tax, can’t argue with that. 
 

it’s become very popular in this era of low interest rates discouraging saving as investment, and opening up of trading to the public.

I can't completely agree. Serious day traders, including individuals on their home computer, get up early every day (depending on where they live and which markets they trade in) and read the financial news in-depth for three hours before starting their trading day. I already pay a 15% federal gains tax on realized profit I redeem over a certain reasonable amount. Therefore I would be extremely unhappy with a 0.1% tax just for trading, even at a trade loss! That's outrageous. 

Edited November 30, 2022 by Dustdevil

[Dustdevil]

3 hours ago, HaoleBoy said:

Should be taxed only for short-term trades (364 days or less) and nothing for long-term sale of stocks.  The day traders are the ones not paying any tax here.

They are, at least Americans are, when they redeem a profit over a certain amount. Capital gains tax, it's called. It's up to 15%, but that's on a fairly large amount for those of us who aren't millionaires. Smaller profits are taxed modestly or not at all. I owned shares in a US-based Thailand fund once, but I wouldn't invest in anything within Thailand.

Edited November 30, 2022 by Dustdevil

[placnx]

3 hours ago, Gknrd said:

So for a 100,000 dollar trade 1000 dollars goes to the government when buying the stock. And whether a loss or gain you will be taxed when you sell!  So basically bend over when you buy and bend over when you sell.   

Preparation H sales among stock traders will go threw the roof.  

 

No, the tax would be $100. It's not much. How much is the broker commission?

[Gknrd]

9 minutes ago, placnx said:

No, the tax would be $100. It's not much. How much is the broker commission?

Yes, that is right.  But, 100 bucks is 100 bucks and I am also curious about the commissions here in Thailand.

I have a couple of pink stocks, Stocks I bought out of the US, and I cannot remember the commission fees.  When my dividends come in they are taxed at 10 percent, and a commission fee is also applied, each time the dividend is paid.  

Personally I am getting out of one. But, another in Mexico is a real winner for me. So, I put up with the fees..  

I personally look at the fees, this is just a blatant rip off IMHO.  So personally I would never purchase stocks here.

Edited November 30, 2022 by Gknrd

[mahjongguy]

So much outrage here about collecting a 0.1% transaction fee. If I have to pay $100 fee the next time I buy or sell a block worth $100,000 I'll try to remember to be sad about it.

 

Here is what should be making people mad: for selling SET-listed equities there is no special tax rate for long term capital gains. In fact, there is no income tax at all on the sale of SET-listed stocks (only on dividends received during possession). What better evidence is needed to show that Thai laws are written by and for the rich?

[nigelforbes]

3 hours ago, Gknrd said:

I see a few new Benz in the driveways..  

 

I see a few new bank owned Benz in the driveway.....is perhaps more accurate.

[nigelforbes]

1 hour ago, Gknrd said:

Yes, that is right.  But, 100 bucks is 100 bucks and I am also curious about the commissions here in Thailand.

I have a couple of pink stocks, Stocks I bought out of the US, and I cannot remember the commission fees.  When my dividends come in they are taxed at 10 percent, and a commission fee is also applied, each time the dividend is paid.  

Personally I am getting out of one. But, another in Mexico is a real winner for me. So, I put up with the fees..  

I personally look at the fees, this is just a blatant rip off IMHO.  So personally I would never purchase stocks here.

I pay on average 0.70% of the sum invested in fund commission and 0.35% per year for platform fees, no charge to buy and sell....UK. Interactive brokers in Luxemburg would give you a better deal, perhaps look into them.  Also, tax on dividends is mostly reclaimable, up to a limit, if not resident for tax purpose, without limit.

[ThaiNotes]

2 hours ago, hotchilli said:

Not bothered I won't partake in Thai stocks.

Thank you for your really helpful and informative reply.  However, in future, if you've got nothing to add, please stop wasting electrons - their supply, after all, is finite, unlike the supply of human stupidity.

[ThaiNotes]

1 minute ago, nigelforbes said:

I pay on average 0.70% of the sum invested in fund commission and 0.35% per year for platform fees, no charge to buy and sell....UK. Interactive brokers in Luxemburg would give you a better deal, perhaps look into them.  Also, tax on dividends is mostly reclaimable, up to a limit, if not resident for tax purpose, without limit.

Paying 0.35% for platform fees in the UK is a mug's game.  Interactive Investor charges a flat GBP 200/year for a general trading account.

If you're Thailand resident, IBKR will open your account in the US, not Luxembourg.  If you're not American, buying mutual funds on IBKR is a non-starter.  Very limited range available, and requiring a lot of additional paperwork.

Tax on dividends is generally not reclaimable - it's implemented as a withholding tax.  You won't get back the 30% (or 15%, depending on tax agreements) withheld by Uncle Sam.

[nigelforbes]

34 minutes ago, ThaiNotes said:

Paying 0.35% for platform fees in the UK is a mug's game.  Interactive Investor charges a flat GBP 200/year for a general trading account.

If you're Thailand resident, IBKR will open your account in the US, not Luxembourg.  If you're not American, buying mutual funds on IBKR is a non-starter.  Very limited range available, and requiring a lot of additional paperwork.

Tax on dividends is generally not reclaimable - it's implemented as a withholding tax.  You won't get back the 30% (or 15%, depending on tax agreements) withheld by Uncle Sam.

I pay marginally over 200 Pounds per year plus the site is feature rich, I'd happily pay more, all things considered.

 

I file UK taxes, not US.