Philippine stock

[rob_45ca]

I am just setting up my account with one of the online brokers there, so I will have to let you know how thing go.

[Rick B]

Rob

Good luck with this, it won\'t be easy, in a rising market seems like printing money but if it were easy we would all be doing it, always seemed like a shot in the dark to me, but i know nothing. Worked in HK in the 90\'s and there was a crisis at the hang Seng levels around 17,000, now they are at 24-25thsd, i know they are tied to the US$ there where there has been a decline in rate balance, but anyway seems, well to be honest seems way out of my depth to predict, good luck

[Manila Cockney]

As somebody who has brokerage accounts in 3 different countries, I often get asked why I dont have an account here. Being a UK citizen, non resident of UK and resident of Philippines, it does not make sense for me to have an account here as I would have to pay tax on the gains. In the other countries I have brokerage accounts US, UK and Hong Kong I do not. If I wanted to invest in Philippines stock market better for me to do it through a Hong Kong mutual fund or ADR as it would be free of tax.   

[fred]

Manila cockney.
Why do you not have to pay tax on your gains  from the UK stock market?
I thought that all income earned in the UK was taxable to a Brit even if he is a non resident? Tax on Bank interest and pensions for example.
I would be interested in reading your answer as I have a dabble on the London AIM market from time to time..
Having said that I doubt I ever earn enough from it to be tax liable..Not recently anyway!

As somebody who has brokerage accounts in 3 different countries, I often get asked why I dont have an account here. Being a UK citizen, non resident of UK and resident of Philippines, it does not make sense for me to have an account here as I would have to pay tax on the gains. In the other countries I have brokerage accounts US, UK and Hong Kong I do not. If I wanted to invest in Philippines stock market better for me to do it through a Hong Kong mutual fund or ADR as it would be free of tax.   

Fred,

I think you misunderstood, MC said:

resident of Philippines, it does not make sense for me to have an account here as I would have to pay tax on the gains. In the other countries I have brokerage accounts US, UK and Hong Kong I do not.

So I think he was referring to tax on an account here not UK.

[fred]

Yes  you are right.. My apologies.

[steveinvisayas]

This is not clear. Manila Cockney, are you saying that you do not pay (capital gains) taxes in your brokerage accounts in UK, US and HK? I\'m wondering how you are able to do this? More information needed to understand your situation.


..resident of UK and resident of Philippines, it does not make sense for me to have an account here as I would have to pay tax on the gains. In the other countries I have brokerage accounts US, UK and Hong Kong I do not. .   


In my situation as an American citizen soon to be resident of the Philipppines, I expect to be paying taxes on income/gains in my US brokerage account every year. So I must be missing something here concerning paying taxes. Fortunately  I do have some losses (on paper) to partly balance the gains.

If I wanted to invest in Philippines stock market better for me to do it through a Hong Kong mutual fund or ADR as it would be free of tax.

Local Philippine taxes yes. Not including taxes in HK, UK and US which would be due on any capital gains. Yes?

I\'m going to avoid the Philippine stock market more for risk aversion reasons. Besides not having enough capital to invest in RP, I\'m just going to leave the majority in US bank and brokerage accounts for the foreseeable future. I feel I have enough risk just moving to Bukidnon in 1 month! Investments in RP will be practical things like a house and car, living expenses for the next couple years. Then I\'ll know how much capital I have available to work with and maybe diversify.

Manila Cockney you sound like you have a lot of experience investing in markets. I would be interested in hearing any reply you might have.   Thanks,   Steve

56 days to Cebu

[Manila Cockney]

What I am saying as a UK citizen resident in Philippines and not ordinarily resident in UK I do not pay capital gains tax in US, UK, or Hong Kong.  If I had a brokerage account in Philippines I would have to pay CGT. This link from Her Majesties Revenue explains the situation regarding CGT for non residents.

http://www.hmrc.gov.uk/cnr/faqs_capgains.htm

As I have been a non resident since before 1998 I do not have to pay CGT unless I became a resident of UK again. You need to go through the Q&A and see how you personally fit in. Previously I was also able to claim back tax credits on dividend income but the labour party decided to change that. I found a way round it by buying Exchange Traded Funds (ETF\'s) on the London stock exchange that are registered in Ireland. The dividends are then paid without a withholding tax and being a non resident I am not liable to any additional tax on the income.


As for the US by declaring with the IRS that I am not a citizen or resident of US I am also exempt from capital gains. There is though a withhold tax of 30% on dividends but because of a double tax treaty between Philippines and the US this is reduced to 25%.

Hong Kong has no tax on capital gains and dividend income.

For Steveinvisayas Uncle Sam is not so kind to you as US citizens are taxed on worldwide income irrespective of their residency. Unlike a UK citizen who once non residency is established is not taxed on worldwide income.

For UK citizens with cash to invest in bank deposits it makes sense for tax purposes to have it an account at one of the banks in Channel Islands or Isle of Man. While its possible to have a bank in the UK pay you gross its saves the form filling etc. Also these banks are easier to deal with while outside the UK as they specialise in servicing expatriates.

[steveinvisayas]

Ah thanks Manila Cockney, I should have realized the tax policies are different for the UK vs the US, of course. Yes we US expats get no tax break living overseas unlike you folks, sadly. Perhaps I was hoping I had overlooked a loophole!  Your clarification appreciated.

Steve

.............................. Yes we US expats get no tax break living overseas unlike you folks, sadly. ............................
Steve

You need to do some digging in the IRS code Steve......
US used to exempt up to first $85,000 of overseas earned income (this varied from year to year it was around $80-85,000 as I recall, when I was working in Bahamas \'81 & Bermuda \'85-86)

Wasn\'t seeing any capital gains at the time so don\'t know how/where that applies when filing when living outside US

[falcon]

I am just setting up my account with one of the online brokers there, so I will have to let you know how thing go.

So which broker did you use and how is it going?  I\'ve never met anyone game enough to try PSE online.  I see BPI offers online brokerage but no idea how good it is.

[rob_45ca]

Hard to say how it is going yet. It ended up taking a long time to just set up the account. I just liked JFC and after seeing him on TV I wanted to try a small investment in it. I will post more as time goes on.

Rob

[clee353]

I\'ve actually opened an account with Citisec Online and have had a great experience so far. Their daily market comments are much better than what you would get reading the Inquirer, and they have a constant stream of equity reports.

Many of their analysts are CFAs (Chartered Financial Analysts) - the gold standard for investment analysis worldwide. Which, while not vouching for the money-making ability of each analyst [you do have to do your homework as well], should say something for the thoroughness of the analysis.

Also, through a fortuitous coincidence, I was able to have lunch with the Founder/Chairman Edward Lee, who explained his dream of bringing brokerage services to the masses. They have a pretty good, free, monthly community service where they explain the basics of equity investments. Hear they are thinking of bringing these outreach programs to the Visayas.

Carolyn353

[clee353]

Oh, one more thing: not to sound like a shill for Citisec online (disclosure: i have no connection with them aside from being a client) - because I\'m not, but it is comforting for me to see the principals of the company declare themselves: https://www.citiseconline.com/Final2/B_home_new/HOME_InvestorRelations.asp

I posted another reply to a different thread on The Legacy Group. Not too comforting to note \'no one\' is \'in charge\': http://www.legacy.com.ph/thelegacy.html

Carolyn353

[samatm]

.............................. Yes we US expats get no tax break living overseas unlike you folks, sadly. ............................
Steve

You need to do some digging in the IRS code Steve......
US used to exempt up to first $85,000 of overseas earned income (this varied from year to year it was around $80-85,000 as I recall, when I was working in Bahamas \'81 & Bermuda \'85-86)

Wasn\'t seeing any capital gains at the time so don\'t know how/where that applies when filing when living outside US

Yes, but you must pass the physical presenence test of being outside the US for not less than 335 days in a calendar year in order to claim that exemption.