Off Shore Income Tax Rate

[thairat]

I'm looking for some help on taxes payable from income derived from off shore investments.

Presently residing in Thailand on retirement visa.

capital gains made on US stock market with an account in the US but I'm NOT a US citizen.

presently paying US income tax

must change brokerage account to international account since I'm not US citizen, not living in the US.

Thailand have tax agreement with US

most of my capital gains stay in my US brokerage account.

If I claim my residence in Thailand and pay Thai taxes, will I be taxed on my total annual capital gains or just the money brought into Thailand as income?

Where is an appropriate Thai tax table?

many thanks

[thairat]

Not many takers here,

The following take from "Taxation of expatriate employees

in Thailand" a Grant Thornton document dated 2008

http://www.gthk.com.hk/cmstree.GetCmsAsset...=232&tempId=

"Charge to tax

Thailand Tax is imposed on assessable income. A resident of

Thailand is taxed on income earned in Thailand and on

income earned offshore which is brought into Thailand in the

year the income is earned. Non-residents are subject to

income tax on all income earned in Thailand."

lack or response implies no one knows or they feel I'm suggesting something illegal.

Maybe this situation doesnt apply....

[MrHammer]

No one is going to know if you make money offshore or not. Is that answer enough?

[thairat]

No one is going to know if you make money offshore or not. Is that answer enough?

If there is a tax agreement between US and Thailand the broker may inform the Thai tax dept.

Presently my account is an American brokerage account and they apprise the IRS of all capital gains or losses without my intervention.

I dont expect to get away without paying, I just want to know what rate they will charge, and what are the limits.

[MrHammer]

No one is going to know if you make money offshore or not. Is that answer enough?

If there is a tax agreement between US and Thailand the broker may inform the Thai tax dept.

Presently my account is an American brokerage account and they apprise the IRS of all capital gains or losses without my intervention.

I dont expect to get away without paying, I just want to know what rate they will charge, and what are the limits.

Change your brokerage to one in a tax haven, problem solved. I don't know about the US tax laws, maybe try contacting a lawyer in Thailand?

[thairat]

No one is going to know if you make money offshore or not. Is that answer enough?

If there is a tax agreement between US and Thailand the broker may inform the Thai tax dept.

Presently my account is an American brokerage account and they apprise the IRS of all capital gains or losses without my intervention.

I dont expect to get away without paying, I just want to know what rate they will charge, and what are the limits.

Change your brokerage to one in a tax haven, problem solved. I don't know about the US tax laws, maybe try contacting a lawyer in Thailand?

Any suggestions for tax haven? I'm sure the internet is full of information on this subject but prefer someone with firsthand knowledge and objectivity.

[MrHammer]

No one is going to know if you make money offshore or not. Is that answer enough?

If there is a tax agreement between US and Thailand the broker may inform the Thai tax dept.

Presently my account is an American brokerage account and they apprise the IRS of all capital gains or losses without my intervention.

I dont expect to get away without paying, I just want to know what rate they will charge, and what are the limits.

Change your brokerage to one in a tax haven, problem solved. I don't know about the US tax laws, maybe try contacting a lawyer in Thailand?

Any suggestions for tax haven? I'm sure the internet is full of information on this subject but prefer someone with firsthand knowledge and objectivity.

Cyprus. Seychelles. Many more. Any decent lawyer specializing in this should be able to set you up. it will cost you though. Company in the Seychelles and bank account in Cyprus seems to be a tried and tested method.

[thairat]

Thanks for the suggestion.

Found this site http://www.seychelles-corporations-ibc-inc...ompanies.co.uk/

They will setup company and banking in several countries including Seychelles with banking in Cypress....recommended on the site.

Setup cost about $1300 USD

US Obama adm trying to crack down on tax havens, need to do further research on risks and alternatives.....Singapore or Ireland perhaps.

[honu]

I was just going to post asking about taxes for an American living abroad (not exactly your situation, of course).

The part about the original post that seems strange is that you're not an American and you're not living in America but you are already paying US taxes. Do you have a business there?

For a US citizen the obligation to pay taxes sticks with you regardless of where you live or make money, but my understanding is that they exempt the first $86,000 earned abroad from taxes, which is a good start. Since I'm now working in Thailand I wish I were making that much to have a tax problem. As it relates to my situation (again, just my understanding, not like I know about taxes) the tax agreement between the US and Thailand is just a redundant arrangement that assures that US citizens won't pay double taxes (which only amounts to a tax credit for Thai taxes paid, which wouldn't change things that much compared to that exemption).

It's kind of obvious but there is lots of basic information at IRS.gov that might help, although it's never completely clear and in any situation that's not straightforward it gets much worse.

[hawthorne]

It has been awhile since I dabbled in taxes use to be an accountant. The laws seem to change yearly. Unless the laws have changed in the US you can not buy stocks, mutual funds etc without a SS number or tax ID. You of course do not need citizenship but you do need green card residency of some sort.

There are two types of capital gains those held less than a year and those held mroe than a year. Long term and short term capital gains. My guess is you are in mutual funds which pay out both once a year near December. It use to be schedule D on the 1040 form. The form for listing stock and other brokerage type exhanges for loss and profit. Again the tax rates are ever changing. BUT the short term gains are taxed at you highest tax rate and the long term gains are taxes at 15%.

Good news about living overseas and working is you pay the tax rate of thatcountry within the tax reciprocity agreement unless you live in a high tax country like Europe you are doing better.

Or even better is you qualify for the residence of whatever country or you stay out of the US for atleast 330 days a year you qualfiy for the $86k tax exemption as mentioned earlier. In mid year 2006 the laws on that changed as well. You use to subtract the $86k from your income and the first dollar above is like only making 1 dollar of income and you start in the lowest tax bracket. SInce 2006 the first dollar you make over $86k is taxed at whatever rate your category falls. You will have to refer to the tax table for you filing method single, married filing jointly, married filing separate. Rates are different. SO no you do not save as much as before. The IRS is gunning for you and it is dam_n hard to get away with now.

Oh and since you are responsible to file US taxes you fall under all the IRS rules and regulations....meaning that you have to report every bank any where in the world that holds $10k or more. You have to report all stock accounts you have. Like it says they are doing everythign they can to find you...If they do life wil be hel_l for you.

The other item I like is not paying any social security and medicare taxes any longer. That max is raised yearly now. I think you are required to continue to pay social security on the first 102,000 you earn now. It has been going up about 4000 a year. So that is about $6500 you can save yearly by not being on a US payroll.

Oh by the way. the IRS is offereing large rewards to those that rat people out for tax evasion for offshore investing. What ever you do never tell a sole. You keep it to yourself and only yourself. No need to go bragging to anyone as you are setting yourself up a huge headache and possible prison sentence.

I have someone do my taxes. It cost less than $200 a year and I have no more headaches. I suggest to you to do the same. They stay up on all the good info.

For instance depending on where you live you can deduct a certain amount of your housing expenses while living overseas based on the cost of living for that area.

Good luck and the tax rules are exhausting and ever changing. Hire a professional