SET profits are not taxed by Thailand to any individual.
An open letter directed to the Nation and us regarding last week's article where we point out wrong advice given by the Phuket Gazette.
Last Sunday we pointed out in the Thailand press that an article in the latest Phuket Gazette wrongly so stated profits on SET shares are taxed in Thailand to foreigners.
The article is targeted at individual expat investors who live in Phuket and elsewhere in Thailand; it continued to conclude to avoid Thai shares.
Here is the exact paragraph that disturbed us (Phuket Gazette page 14):
"Or there are Thailand's bond and stock markets, where values may fluctuate wildly and where any profits are taxable".
Below is a copy of a letter forwarded to us via the Nation newspaper. Thaistocks.com reply is in between Mr. Haadt's comments, shown in italic font.
Dear Sir,
As a qualified accountant with over 20 years experience, I was shocked to see that on Sunday 23rd April 2000, an article on page B6 attributed to ThaiStocks.com gave incorrect tax advice to your readers. There are several issues here.
1. I am sure that Thaistocks is not a qualified tax advisor in Thailand and therefore it is probably illegal and certainly unprofessional for them to give tax advice.
(Thaistocks.com answers in italic font)
To make general comments on Thai taxes is fair, especially when a local publication directed at individual foreigners here makes a wrong and thereby unfair statement.
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2. ThaiStocks was criticizing the Phuket Gazette for giving bad advice and then gave bad advice themselves (again very unprofessional).
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Sorry, we stand to our view that has clarified this topic now. (please see below).
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3. The advice was wrong, leaving open both the Nation and ThaiStocks to legal action if an investor acts on the advice.
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(Please see below).
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4. I believe that if the Nation checks with a qualified tax advisor in Thailand it will find that;
a. All foreign investors are subject to taxes on capital gains in their own country on profits made on the Thai stock Exchange (about 40% of all investors on the exchange).
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Not true, many foreign to Thailand countries do not require taxes on profits made in a foreign land. But the point is I was clearly talking about taxes due in Thailand. The Phuket Gazette on page 14 was clearly suggesting to the unsuspecting expat and tourist reader that taxes are due in Thailand on SET profits. Did Mr. Haadt read the full Phuket Gazette article? You are extrapolating to the whole world what I said about taxes payable in Thailand. Why?
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b. All Thai juridistic persons(e.g. companies, partnerships etc.) are subject to tax on the capital gains from the Thai Stock Exchange at rates of 30% (not tax free as indicated in the article).
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We are not talking about companies. Both my comments and the ones from the Gazette are clearly targeted to individuals. Why assume this different? If we meant to say companies we and the Gazette author would have said so. Why not then review foundations or trust etc...do they pay taxes?
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c. Thai individual residents are exempt from tax on the Thai Stock Exchange.
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You are at best, only half right! Thai individuals and foreign individuals are exempt of any Thai taxation on capital gains made on the SET stock market. . What taxes if any they then pay in their own home country, far away, is obviously beyond the scope of the Gazette's article or thaistocks.com comments on this.
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With this in mind, I strongly suggest that the Nation ;
a. Print a retraction of the Thai Stocks information (obviously an error)
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Nope, I stand to my statements and think it is the Phuket Gazette that should make a correction. Why not ask them for a retraction? We e-mailed them many days before the Nation article and they chose not to answer.
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b. The Nation carefully screen ThaiStocks future copy to make sure it does keep its content to the facts and not fiction. ThaiStocks should act in a professional manner.
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In fact this is our recommendation for the Phuket Gazette. Articles which at best confuse people is not professional. We now clarify the issue and so provided helpful understanding, while only giving general tax advice which was only prompted by a wrong statement.
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c. Request that a qualified tax advisor provide a true report on the tax situation.
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And that professionals like me point out when clearly mis-advise is given.
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d. Readers be advised to consult their own tax advisor on the issues relative to their own tax situation (in each country)
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True, on specific tax advice in their own home country this is a good recommendation. But in the meantime rest assured that in Thailand stock profits are not taxed, neither to Thai citizens or foreigners, regardless of whether living here or residing abroad.
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Jason Haadt
Accountant
Denmark
Best Regards,
Paul A. Renaud.
Best personal regards to all our subscribers,
Paul A. Renaud
