I have a portfolio in my home country. Since I am not leaving TW anytime soon, I’m thinking of moving it here. My bank told me ill have to sell everything, pay 25% tax back home, then remit the money to TW and invest it through a bank here. That will make it not worthwhile.
is it possible to do this without selling my stocks and bonds?
If yes, how?
In the US there is a semi-automatic mechanism for stock transfers (ACATS) but I don’t think this works internationally. Why would you want to move your brokerage account? Do you get lower fees in Taiwan? If you want to proceed: You should talk to the local brokerage of your choice about how to move your portfolio here. If it can be done, they will quote you a fee (your old brokerage will also not do this for free).
It’s probably easier to just change your tax residence to Taiwan, though that might not resolve all of your issues.
convenience (easier to control when everything is one place) and lower taxation in Taiwan
Taxation is usually dependent on your country of residence, not the country of your brokerage.
I am a tax resident in Taiwan, if i keep an overseas brokerage account, my country of origin will withhold 25% capital gains tax.
since i am not interested in selling the stocks now, nor am i interested in being bothered to file tax returns when i do eventually sell, i am looking into consolidating everything in TW.
Are you sure they withhold a Capital Gains tax if you keep your account with them? Or just a withholding tax on dividends/interest? I have never heard of a broker withholding tax on capital gains … Because they can be offset by losses,etc… It is generally the responsibility of the owner of the account to figure out with their country of residence.
I would double check to verify.
However, some brokerages will not allow foreign residents to maintain an account … it depends on the brokerage though.
Be careful with the tax issue. The US will treat your unearned income the same way…even with Taiwan tax residency (assuming you are American).
Can you not just keep the brokerage account open in the US?
It should not affect any taxes unless you do trading on the account… which now I’m assuming you want to do. Should not affect tax at all if it is a tax deferred account like 401K and Roth IRA.
Sorry,I wasn’t clear, they withhold 25% on dividends, and will also withhold when I eventually sell stocks. I believe TW has lower tax rates for this, so I am trying to figure out if it’s worth it to move the portfolio here.
I can also file for returns in my home country (since I am longer tax resident) but it will be a hassle doing it remotely from here.
I have a financial planner to do all these things for me so I’m not certain, but I thought capital gains taxes reduce the longer you hold investments. Messing with it now may be more costly even if taxes are lower in Taiwan.
Not in my country, its fixed regardless of how long u hold, tax varies between bonds and stocks (bonds are taxed lower) but doesn’t matter how long u hold.
is your planner based in TW? What company does he work for?
Not in Taiwan. I only hold annuities and property here. My wife does hold stock in a few companies here though.