Last week I posted a detailed new article called Trade Thai Shares Not American Penny Stocks. If you are currently trading on U.S. markets, or plan to in the future, you should read it.
A kind member of the Thai Shares community pointed out that I omitted to mention anything about taxation. So, to make amends, I have published this short follow up.
If you are a foreigner trading on the Stock Exchange of Thailand the Thai government does not levy any taxes on your capital gains. That’s right, if you buy and sell Thai shares and make a profit, you are exempt from paying any tax in Thailand. Any dividends you receive are taxed at 10%, but this is a withholding tax that, as a foreigner, you are eligible to claim back.
You can also claim back the 10% withholding tax deducted from the interest that your Thai broker pays you on the balance of your trading account. Yes, you read correctly, my Thai broker pays me 1.5% p.a. interest on any balance of funds in my trading account. It’s impossible to find a deal like that now days in the U.S.
Your comments or feedback on this article are welcomed. If you want to discuss and learn more about trading Thai shares please visit our forums. If you have a specific question you can post it as a new topic.