I would like to open an investment account with Interactive Brokers in Hong Kong to invest in US stock market and forex based on some recommendations on this forum, but I've found conflicting information about the US/HK/Thai tax that may arise.

Some background: I am a Thai citizen, living in Thailand. As indicated on their website, the fund and securities will be with IB's US entity.

I hope that many people on here with accounts for trading US equity from IB or others would be able to help discuss their tax position. I realize that there will be US withholding tax on dividends ( 30% ) that is not refundable. What about capital gain tax / income tax?

Thank you in advance for anyone who can help provide any information.

I would like to open an investment account with Interactive Brokers in Hong Kong to invest in US stock market and forex based on some recommendations on this forum, but I've found conflicting information about the US/HK/Thai tax that may arise.

Some background: I am a Thai citizen, living in Thailand. As indicated on their website, the fund and securities will be with IB's US entity.

I hope that many people on here with accounts for trading US equity from IB or others would be able to help discuss their tax position. I realize that there will be US withholding tax on dividends ( 30% ) that is not refundable. What about capital gain tax / income tax?

Thank you in advance for anyone who can help provide any information.

as a thai citizen you are not taxable for investment gains or obliged to pay income tax in the US if you want to pay those taxes you should do it in Thailand.

Under the US-Thai Tax Treaty, the withholding rate on dividends paid by a US company to a Thai citizen resident in Thailand is normally reduced to 15 per cent. See Article X.

You should be able to apply the US withholding tax as a credit against any Thai tax imposed on these dividends. See Article XXV.

http://www.irs.gov/pub/irs-trty/thailand.pdf

Edited February 28, 200917 yr by taxout

Thank you, both of you. It is good to know about the tax treaty.