Trump chickens out again.

[thecynic]

Hey guys,

I am looking to invest in LTFs for tax saving purposes, but I am unable to find the answer to one of my questions.

I do understand that I have to hold them for at least five years or I will have to pay back the tax exemption claimed and some fine on top of that. But my question is whether I can hold the LTFs even if I have to leave Thailand? For instance, if I lose my job in Thailand or move for other reasons, do I have to liquidate all my holdings, in the process having to pay the fine and the tax?

Thanks in advance for any replies.

Cheers!

[Ludacris]

As far as I know, there's nothing that says you have to redeem your LTF funds if you leave Thailand. Thinking about it further, you don't have to invest every year and the tax benefits are only available in the year you invest, so that makes sense. But it would probably still be a good idea to ask when you open an account as all the fund advisors I've talked to have excellent English and know the rules inside and out.

Note that the the five years could be as short as 4 since money invested in December already counts as being invested for 1 year.

If you're just starting out in the LTF world, Morningstar Thailand has a great website that describes all the funds as well as shows the performance of each one.

Click on funds, then you can select LTF from the AIMC Category.

http://tools.morningstarthailand.com/th/fundquickrank/default.aspx?Site=th&LanguageId=en-TH

Let us know if you have any other questions.

[fletchsmile]

No problem if you leave the country, lose your job, or move for other reasons. I ve done all of those and just kept on holding.

Keep a Thai bank account open tho where you can always redeem/ sell when the time comes.

Cheers

Fletch

Sent from my GT-I9152 using Thaivisa Connect Thailand mobile app

[thecynic]

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As far as I know, there's nothing that says you have to redeem your LTF funds if you leave Thailand. Thinking about it further, you don't have to invest every year and the tax benefits are only available in the year you invest, so that makes sense. But it would probably still be a good idea to ask when you open an account as all the fund advisors I've talked to have excellent English and know the rules inside and out.

Note that the the five years could be as short as 4 since money invested in December already counts as being invested for 1 year.

If you're just starting out in the LTF world, Morningstar Thailand has a great website that describes all the funds as well as shows the performance of each one.

Click on funds, then you can select LTF from the AIMC Category.

http://tools.morningstarthailand.com/th/fundquickrank/default.aspx?Site=th&LanguageId=en-TH

Let us know if you have any other questions.

Thanks very much. I will ask the fund advisor(s). Just wanted to do my homework before I contact them. They tend to say anything and everything to get the account, so just wanted to be prepared.

This link is very useful. thanks much!

[thecynic]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

No problem if you leave the country, lose your job, or move for other reasons. I ve done all of those and just kept on holding.
Keep a Thai bank account open tho where you can always redeem/ sell when the time comes.

Cheers
Fletch

Sent from my GT-I9152 using Thaivisa Connect Thailand mobile app

Thanks Fletch.

[Tj555]

LTFs, or any other non-US-based mutual fund, are not recommended for "US Persons," which has a broader definition than citizen. If you're not one of those, go right ahead and invest. Don't need to divest if you leave the country, as others have said.

If you are a "US Person," look up "PFIC" and "Form 8621".

The IRS demands not only extensive, technical reporting, they tax gains from them at the highest possible income tax rates, not long term capital gains.

(US Persons are taxed for all assets, in or out of the US)

[Ludacris]

Omg, after looking at the instructions for the Form 8621 I'm going to be glad every morning when I wake up that I'm not an American.

At the bottom of the instructions for that form the gov't itself estimates it will take an average person over 46 hours to do the record keeping, learn about the form, and prepare it. That's a normal work week and a days' worth of work at 8 hours a day!

I can't believe your gov't not only taxes you on your worldwide salary and capital gains, but they also expect you to spend over a week of your working life per year just filling out a form for being a shareholder in a foreign company! And that's on top of all the time you have to spend filling out all the other forms, and the headaches you have trying to find financial institutions abroad that will even deal with you because of all the ridiculous rules and extra paperwork.

Absolutely unbelievable!

No wonder some American's give up their citizenship when they move abroad!

[thecynic]

Yeah..thankfully I am not one of those "US Persons"

[Ludacris]

That's good to hear.

I still can't believe that any gov't in the world would come up with a form that they admit would take over 46 hours to fill out!

For a country that's supposed to be one of the most business-friendly in the world, they sure come down hard on their own citizens in ways that most other countries in the world don't - specifically inheritance taxes, taxes on non-residents, and paperwork.

This article just came out a couple hours ago:

http://finance.yahoo.com/news/expats-ditching-u-s--passports-151127757.html

[Shane77]

Hi there. I know it's been a while since this topic has raised, but I have a similar question regarding LTF.

I worked in Thailand in 2013 and 2014. I bought LTF for the year 2013 and quit my job in March 2014, then left Thailand the following month. Of course my work visa/permit got voided at that time.

My questions are:

Q1. Am I still able to buy LTF this year in 2014? I already have an LTF account at Bangkok Bank and I would like to add some more to the same account.

Q2. If I can still buy LTF this year, is it still tax-exempt for its capital gain?

Q3. If I can still buy LTF this year, am I still able to claim the purchased LTF amount for tax deduction for this year's tax return?

I'm visiting Thailand this November and would like to buy more LTF if at least answers of Q1 & Q2 are yes (I don't really care about Q3 since I didn't earn much in 2014). I could ask at my bank branch when I visit, but I want to know in advance as I need to prepare some money from now.