Big news from the Thai capital market industry Latest Revenue Department Confirm that income tax will be collected. of natural persons with income from abroad Including income from investing in foreign stocks It will start on January 1, 2024. Who benefits from this matter? Who benefits? And what will happen to those who invest outside?
The reason for collecting this tax The Revenue Department reasons that Tax collection must be more fair. This tax will cover both
But from 1 January 2024 onwards, the Revenue Department said No matter what year you transfer back to Thailand. That income must also be taxed. It can be seen that this matter is a “big issue” in the Thai capital market industry. So what effects will there be? with people who buy foreign shares This is probably the first question that everyone wonders. The answer can be many different things, depending on
For example, if the person has a tax base of less than 10% and a small amount of money. That person will still not see the importance of taxes. And this matter probably had no effect on him.
But if investors with a high tax base And the size of the money invested will be a very big deal. Comparing the picture is
Of course, if people who don’t want to pay this tax will start to worry. But for those who still have confidence in foreign stocks that it will give better returns than Thai stocks may still invest in foreign stocks But at the same time, you may find alternative forms of investment that are less expensive than the original form.
So what are the investment styles? That may cost less than in the original form?
The first example is Foreign stock mutual funds The buyer does not have to pay income tax. But the buyer will have to pay a fund management fee instead. Give an example to show the picture.
If we buy individual stocks Then there is a tax base of 20%-30% from profits.
If we earn profits from foreign stocks 10%-20% per year, we will have tax expenses of 2%-6% per year. Investors will compare this tax expense. with foreign fund management fees This is generally around 1%-2% per year, which is less than buying individual stocks.
Therefore, what will happen in the Thai capital market circle is
New investments in Thailand that want to invest in foreign stocks It may flow more to mutual funds. compared to before Because when you look at it, it’s as if The Revenue Department is forcing Retail investors choose to pay taxes. or will pay a management fee to the mutual fund There is no longer any way to invest on your own. and don’t pay taxes And the companies that benefit in a som-dropping way are businesses related to mutual funds that invest abroad, such as mutual funds and securities companies, which may include DR and DRx, which are Thai securities that refer to foreign stocks.
Meanwhile Those who will benefit are likely to be securities companies. that provides individual foreign stock trading services Including private fund groups that take care of large clients. that customers are concerned about taxes While companies that provide both foreign stock trading and mutual funds as well You may encounter a situation of switching from individual outside stocks to mutual funds instead.
For people working abroad I can tell you that many people work abroad. If you get money from abroad, you don’t have to worry too much. Because of this rule, you can easily exempt yourself from taxes by simply returning to Thailand in the second half of the year.. Interpreting from what the Revenue Department said: If we have been in Thailand for more than 180 days and have income from abroad and brought back in that year Will have to pay taxes If you stay less than 180 days, you don’t have to pay taxes.
This matter will cause Thai people working abroad. If you want to bring money back to Thailand will choose to bring money back to the country at the end of the year Instead of returning to Thailand at the beginning of the year People who work abroad and have a lot of income will probably do this. in order to be exempt from taxes
For large investors who still want to buy individual stocks This matter can be tax alleviated by Establishment of a legal entity for foreign investment This is because legal entities are taxed at 20%, but individuals have a tax ladder of up to 35%.
For example, Mr. A has income including investment profits of 5,000,000 baht per year and must pay tax at 35%. But if Mr. A goes to register and establish ABC Company as a juristic person. will pay only 20% tax (when including dividend withholding tax will be calculated as only 28%, which is less than that anyway)
It can be seen that Thai law has There is a “tax gap” between legal entities and high-income individuals. Or, for example, a billionaire investor who wants to bring a large sum of money back to the country. You may go abroad for a total of half a year. Then bring back the billions that year. It can be exempt from taxes as well. In addition, collecting taxes from foreign investments It may be very difficult in practice, for example, if we transfer money to invest in many lump sums abroad. Each lump of profit and loss is different. How will taxes be calculated? Can losses offset profits? Can profits earned from exchange rates be considered money? What format will the report that is sent to the Revenue Department be in? Dividends from outside stocks that have already been withheld How will this tax be deducted? It can be seen that these details are not yet clear. It should make Thai investors who invest abroad There was quite a bit of confusion.
After reading up to here Many people probably understand foreign income taxes. Those who gain and lose benefits Including various cases that may occur initially.
which this matter It is a big matter for all parties. Whether it is an investor or people doing business abroad Must follow carefully Because after looking at it, there are still many angles that haven’t been covered. Instead, the Revenue Department will be able to collect more taxes. actual picture Those people may choose to delay bringing their money back. or find another loophole instead And finally, the Revenue Department has to work harder in checking confusing documents while collecting less tax for this part anyway..
Cr: https://www.longtunman.com/47011
Interested in working with us to prepare to become a professional financial advisor immediately?
:
Including our communication channels
