Most of my savings are in US/international index funds and I don’t plan to change that, but I’m curious about those here who have chosen to invest in Taiwanese stocks. Why did you decide to do so? What are you invested in? Has it worked out well for you?
TSMC has worked out well since Covid became an issue
I would like to setup a brokerage account. My understsanding is capital gains are not taxed if under 6.7M AMT? Is that the case for foreign cap gains like HK stocks or fund investments in HK or Cayman?
I would recommend IBKR. Easy to open an account online from Taiwan and access to world-wide markets.
Yes, to my understanding, capital gains and dividends of overseas equity are tax free until 6.7M (I think they actually increased to 7.1M), but need to be reported if they exceed 1M. I think you can deduct losses and expenses, too. And yes, this should apply to all foreign traded stocks, funds, … - they count as “overseas income” in the view of the tax authorities.
Do note that things could be different if the capital gains or dividends result from a company where you’re a controlling or significant owner.
and this is annual right? So its better to have short term cap gains under 7.1M yearly vs holding long term? Whats the reporting procedure like for 1M?
You’re free to realize profits and immediately rebuy (to harvest profits or losses) as far as I know.
Just enter it in your yearly tax return (online or offline).
Some people will even suggest to not report anything, but that would not be legal - YMMV.
Is it possible for Taiwan citizen to open brokerage account in Hong Kong? As far as I know they dont have AMT on stock sales
Hong Kong might not have, but if you’re a tax resident in Taiwan, you’ll still fall under the Taiwan AMT regarding your world-wide income.
Of course, having a brokerage in Hong Kong will make it much easier to hide those profits from the tax authorities in Taiwan - but it won’t make it legal.
Youre right. Any recommendation on cheap brokers to trade HK and US stocks?
Personally, I would recommend IBKR (Interactive Brokers) - easy to open an account online from Taiwan and fees are reasonable.
How about broker recommendation for Taiwan stocks? Taiwan stocks are tax free and not subject to AMT right?