Looking at all aspects of "collecting foreign investment taxes" with tips from experts. With 3 months left, what should we do?

tax It is a sensitive matter because it is about money. Recently, the Revenue Department issued an announcement to collect Foreign Asset Investment Tax Which of course includes stocks, starting January 1, 2567, resulting in small shareholders Highnetworth people and Ultra High Networth Foreign investors are startled. A broker providing direct investment services in foreign stocks said that customers periodically inquire about such cases.

มีPerspectives from capital markets and tax expertsTo the said issue at bank finance Both sides will be presented. Along with advice on how to adjust.

• Positive side This is considered a positive effect on investment products in the country. Whether it is a FIF fund issued by an asset management company As for securities companies Will receive positive results from DR and DRx, which are investments in foreign securities. Including investing in the Thai stock market
• Negative side It will affect all investors who invest money abroad. The small ones will be more affected than the large ones who have more investment opportunities. And there is no need to spend money. or transfer money back into the country

look inbusiness corner โดยAsia Plus Securities Company (Securities Company) Analyze the issue of taxation of investments in foreign stocks. It will be taken into account when calculating income taxes starting on January 1, 2567.

Asia Plus Securities It is estimated that investors will see some foreign stocks take profits during the remainder of the year before the tax comes into effect.

Because in addition to not paying taxes Also gain from additional exchange rates. After the baht is in the depreciation zone of 35.67 baht per dollar (depreciated 3.1% from the beginning of 2566), some of this money may come in to enhance liquidity in the Thai stock market in the next period.

while expectedMutual funds investing in foreign securities (FIF) will receive more attention, with information as of the end of August 2566. It was found that there are 1,040 FIF funds in Thailand, accounting for 36% from a total of 2,903 funds, and having a total asset value of 9.63 billion baht, accounting for 19% of the total asset value of all funds of 5.08 trillion baht.

Therefore, the issue of taxation of foreign stocks This should encourage various asset management companies (asset management companies) to issue more FIF funds (because they have the right not to include profits in the calculation with income tax like foreign stocks). This can support increased demand for buying foreign stocks.

In addition, foreign securities warrants DR (Depositary Receipt) and DRx (Fractional Depositary Receipt) are likely to receive increased interest. Because it is a type of security that can move and be traded like foreign stocks. without having to open a foreign stock portfolio And profits do not have to be taken into account with income taxes like foreign stocks. Currently, there are 19 DR and DRx on the Thai stock market.

Therefore, Asia Plus Securities views that the issue of taxation of foreign stocks should be an encouragement for investors to return their interest and give more weight to domestic investment products, whether FIF, DR, and DRx funds, as well as stocks. It's Thailand. It might get more attention. Especially during the period where there is continued economic stimulus from the new government for the rest of the year.

• So how should you manage your overseas portfolio or assets?

Tax expert from Ernst & Young Company (EY) by Kasem Kiattisereekul recommends that there are 2 options to choose from.

First way is the gradual sale of assets or sell investments abroad during the remaining 3 months of this year before the announcement comes into effect (1 Jan. 2567)

Second way That is, you don't have to bring money back into the country. to travel or continue to explore the world of investing abroad

• Investors' voices and perspectives

Dr. Niwet Meewachirawarakorn Investors who currently invest in foreign stocks Live with it and have the opinion that The levy will affect all investors who invest their money abroad.

However, the issue that needs to be followed up is what the tax collection criteria will be. And will the information to be used for consideration be sufficient or not? If the tax is calculated from profits, it is still acceptable. But is there accurate information about how much of this money is part of costs and how much is profit?

Dr. Niwet also noted another important issue. data availability Sometimes only part of the funds may be returned. How is this calculated? Or if it is an investment in multiple stocks, there are both profits and losses. If you bring back only the money that was sold at a loss, how can you prove it?

In addition, large investors who invest abroad, Dr. Niwet pointed out that most of them have diversified their investments in various assets, so there is no need to bring money back to the country. Because there are many sources of money.

side Trawut Luangsomboon Investors in foreign stocks and the founder of Jitta (Jitta), a global stock analysis technology provider from "Jitta", proposes that the government revise the collection of foreign income taxes to be clear and fair to investors both inside and outside the country.

In addition, "Jitta" would like to speak up on behalf of investors. Let the government carefully review the guidelines for collecting income tax from abroad. and create fairness for investors to provide good investment opportunities both in Thailand and abroad.

I want to see clarity in the guidelines. Views that the government can exempt Capital Gain Tax from investing in foreign stocks in the same way as investing in Thai stocks. To create true equality Ready to represent investors and discuss solutions with the Revenue Department.

Trawut said that overall, the guidelines used by the Revenue Department To collect additional income tax in this foreign country. Because I think Persons who can invest abroad Likely to be a person with a high net worth.

But in reality Over the years Foreign investment technology has developed greatly. As a result, many small investors are now investing abroad. Because they saw an opportunity to create returns. And there is better risk diversification than investing only in the country.

By now General retail investors can now start investing abroad. With only hundreds or thousands of baht

“If the Revenue Department charges taxes on investments in foreign stocks The group of people that are likely to be most affected are small investors more than large investors. with more investment opportunities and there is no need to spend money or transfer money back into the country.”

There is another angle to the weapon. has reflected that is The tax treatment guidelines for investing in stocks still need to be very clear. This is because investing in foreign stocks is different from having other income such as from work or owning real estate for rent. Because stocks are risky assets There is a chance of loss or profit. Including having a greater number of trading transactions This makes tax calculations highly complex. Create confusion in treating investors

Therefore, if you have to pay taxes on investing in foreign stocks. This part should be carefully considered. In order to be fair to all investors who will have to pay taxes.

Give an example For example, in the case where we invest abroad The first year there was a profit and money was brought in. Tax already paid Another year, use the money to invest further. But came back to a heavy loss. But I can't ask for tax on profits. This will make it worse in the long run. Investors will suffer bigger and bigger losses. Until no one wants to invest abroad again.

Or in the case of investing money in two investment portfolios, one in China and one in America. If the port in America is profitable But ports in China are losing money. then bring the money back When calculating taxes only on portfolio profits It may not be fair to investors.

ใน The issue of equality in investment taxation That is because investing in the Thai stock market is currently exempt from capital gain tax. Therefore, I personally think that Investing in foreign stocks should be exempted as well. Which will be consistent with what the Revenue Department has recently issued to clarify that Want to create fairness in tax collection between people who have income from income sources inside and outside the country. So, what kind of taxes are collected within the country? It should be used as a guideline for collecting foreign income taxes in the same way.

In addition, there are demands from securities companies. that provides direct overseas stock trading services saying that this business is just starting, don't start using birth control yet. along with 2 questions to the Revenue Department First point Is tax collection necessary?

Second point If you think it's necessary It should not start on January 1, 2567, but should give the business sector and investors time to adjust, such as starting in 2568.

This Revenue Department Announcement is issued to persons residing in Thailand under Section 41, paragraph three, of the Revenue Code who have assessable income due to work duties or activities performed abroad. or because assets are located abroad according to Section 41, Paragraph 2 of the Revenue Code in that tax year. and has brought that assessable income into Thailand in any tax year It is a duty to include these assessable incomes in calculating taxes according to Section 48 of the Revenue Code. In the tax year in which the assessable income was brought in Domestic starting January 1, 2567

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