Good video. Last part was exciting (US stocks through Sgp account). After current budget, looks like LTCG will reach 30% in future. Might need some smart tax planning for future.
This is such an amazing gem, cannot thank you less!!!!! You should make a follow up about how folks owning American company RSUs (typically FAANG) can reduce tax burden using Singapore based capital gain realisation or in US (selected states like Florida). Are there any restrictions around it etc. This was super duper comprehensive.
Thanks. We stumbled and learned most of this stuff so important to share it with others who have or going through a career that cuts across borders. As for your point. Sure, will try to make a video around that in future. But the fundamental thing in that situation is where a person's tax residency is and not just where the funds / investments are parked. For example, if a person is a tax resident in India then putting money in Singapore, Dubai (... or Florida) will not make a difference.
@@TheFIREdCouple right. Agreed on tax residency point. I meant relocation to these places temporarily for realising cap gains. Most big firms have options to move to such places temporarily.
Oh ok. Yes I think if a person relocates to a place like Singapore, Dubai then there is a possibility to minimise the capital gains. However worth checking with a tax consultant how much that would be.
This video is Gem ! Covered great info about variety of taxes across the globe. Looking forward for more videos from you on this topic ! Can you recommend resources to learn further about these taxes?
Glad it was helpful! Unfortunately the knowledge about global taxes is scattered all over in different places. Nomad Capitalist does have some interesting articles to go through - nomadcapitalist.com/articles/
Great video sir. Please suggest us your go to resources you use to gather taxation info. Like reddits/websites/blogs/forums/groups etc.? Also, do you work with any particular tax agency or CA to guide you? Is it possible to share those contacts?
Thanks for appreciation. We've gather knowledge by going through various sources including reddit, blogs, forums etc. But the most reliable is what most folks typically ignore: the GOI income tax portal (www.incometax.gov.in/iec/foportal/). It maybe has a boring look&feel but has wealth of information ... and you get the information from the source. Suggest to spend time going through the details on the site (www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1#taxslabs). It gives a good insight on who is taxable, what is taxable, deductions, NRI status, tax slabs and more.
7:00 In India vestige dosent mean hitting bank account, it just mean they are available to exercise. When one Exercises, then the tax implication comes, when one exists another tax event (LTCG/STCG) .
Sorry my bad with the language. I meant shares being available when I said hitting the account. Agree that is when the income tax implication comes. The LTCG/STCG being when they are actually sold. Thanks.
Great video..Learnt a lot of new things…Could you share some ideas on how to manage currency risk when one is earning in one currency (eg. THB) and is likely to spend in another currency( USD). How should one invest the savings for short term (2-3 years)and long term ( 10 years)?
Glad you found the video useful. Currency diversification is one of the good ways to hedge not just the currency risk but also investment diversification, as different currencies have different sort of available investments (e.g. S&P500, Nasdaq in USD, Mutual funds in INR, maybe real estate rentals in THB etc). Do watch the video on Bucket Strategy (ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-IduWlfYQkZg.htmlsi=bCh5bNjZFlDIWeUY). Will give some good insights into short-term, medium-term and long-term investment profiles
(a) If one transfers their equity shares from India to Dubai / Singapore, is there capital gains levied in India since we are moving these assets abroad ? (b) Or, in such transfers Indian govt allows transfers upto a specified limit each year, say 2-2.5 crores per annum . Request you to clarify
Best to check with a tax consultant / CA. As far as I know, it wouldn't be a straightforward transfer of your equity shares from India to Dubai / Singapore. Most likely, for all practical purposes, these equities / funds would be of Indian companies, invested in INR and traded with Indian bank or local custodian accounts. So the transfer would essentially require liquidating at least some of those investments and reinvesting in AED, USD, SGD in either international funds / equities or related Indian indices (e.g. SGX Nifty). When you will do this, it would automatically incur a capital gains tax.
Very informative video. Thanks! Question: I live in Netherlands. Should i be declaring my indian equity assets in Netherlands? If yes, will they be double taxed? Because i remember reading that countries have treaties to avoid double taxation.
Yes you should declare all your assets. Netherlands has a double taxation treaty so you will not be double taxes. Not declaring can put you in trouble as Netherlands and India have CRS (Common Reporting Standard) and exchange tax related information
Great Video - For a fired couple with majority of wealth is in India - would it make sense to look for another country's tax residency? do you have any calculation? Thank you in advance
If the assets are in India then residency in another country will not help from a taxes perspective but from other aspects like quality of life, expenses etc. Though it does open up the option of transferring parts of those assets in tax friendly countries.
Hi. Thank you for sharing. Very helpful. I am exploring the Thailand Destination Visa for Digital Nomads. If in the next FY, if I am outside India for 182 days, will I be considered an NRI for taxation purposes? Also, do you offer consultancy services ? Thank you sir.
The new visa scheme is very interesting for digital workers. Just be mindful that itself maximum 180 days stay allowed in year. Yes. You can reach out on thefiredcouple@gmail.com
Great video! Lived in Thailand for a couple years now as a nomad and currently on a SMART Visa. I like the vids you put out. I'm fairly young and have recently decided to start working towards FIRE. I have a significant amount in Indian MFs and some in US ETFs through INDMoney. Is it safe to assume I'll be taxed capital gains on both regardless of my NRI status? Another question - can non residents of SG/UAE open accounts there and invest in US stocks? What was the process and docs required for you to invest in US Stocks with a SG account? Also - can it just be done online? Have you tried investing through the Charles Schwab website while domiciled in India? Heard you can invest directly in US market. Also - would love to know what country you've invested the most in and the reasoning behind it. Thank you!
Oh nice that you've been living in Thailand on a SMART visa! Answers to your questions 1. Typically as an NRI, you should only be taxed on locally earned income in India. So the US ETFs and stocks shouldn't be taxed (assuming they are directly listed in the US and in USD and not INR). Worth checking with a CA anyways 2. Yes you should be able to open a bank account in Singapore (also in UAE I think) but as far as I know, you have to visit in person to open an account. Some info - osome.com/sg/guides/foreigner-open-bank-account-in-singapore/ 3. Never tried Charles Schwab. Our go-to platforms so far have been Saxo and IBKR. 4. Our investments are spread across INR, USD, SGD and EUR with a dominant share in ETFs / Mutual Funds both in INR and USD.
Hei, you have very good videos on FIRE, can you help me with a question please, when retiring did you move your corpus outside of Netherlands to India or Thailand? How did that work? I am concerned with wealth tax and exit tax some countries in Europe levy.. Regards sujith
Hi Sujith, thanks for the appreciation. We have distributed our investments in different countries for the purpose of diversification in currencies and markets. Specific to your question: 1. We will have to pay LTCG on India investments whenever we withdraw from that corpus in future 2. Once a person leaves Netherlands, they only charge 'Wealth Tax' on any local real estate investments. Other forms of investments - savings, funds, shares etc - are tax exempt. Each European country has their own laws so you will have to check individually.
We typically don’t recommend investment products/ schemes on our channel. Best to reach out to an expert who can advise products based on your specific situation
For an NRI based out of Singapore or Dubai, will he have to pay capital gain tax from sale of Indian Stock or ETF if he had bought those stocks while he was in India?
Any investment done in India - be it as an NRI or while as a resident - is subject to capital gains tax. However, worth double checking this with your CA also.
Difficult to say, as a lot more context is needed: 1. Have these RSUs already vested? If before the vesting date, they would most likely remain locked with the company you are working for. 2. Are these RSUs of an international company or an Indian company? If an Indian company listed in India and in INR, not sure if they can be transferred to Singapore or other places 3. Are you an NRI or a tax resident in India? If an Indian tax resident, then doesn't matter where the RSUs are - India or overseas. They would still be subject to LTCG as far as we know. In any case, please check with a tax consultant or a CA. They would be able to guide you better.
@@lemonginger001 Well.. as an Indian resident, don't think forming a company or transferring the RSUs to an overseas account. Worth checking with a tax expert in any case.
Hello sir!!! Can please share your opinion on how to maximise wealth for 30+ My case im in 37 NRI living / Working in Dubai with 2 kids studying in Dubai l… spending most of salry in living expenses and With the healp of RU-vid videos from several other good humans like you, I started thinking about wealth creation and Future planning… Last 2 years i taken huge loan 100K $ which is huge for me and invested in Equities in 80% in US stocks (Tesla, Nvidia ) 20% in Indian Direct stock.. Could you please enlighten some financial ideas on how to change my present allocations and should i close my loan before 40 and proceed with excess i get or let my stocks selection grows 🎉 Thank you!!! I will be greatful if u take my case.. and give some Ideas.
Firstly, don't invest money on loans but on savings. If there is a market crash, not only do you lose your investments but also have to repay the loans!
As far as I understand, that 120 days replaces the 60days test and also have a 15lacs income threshold . Below is an extract from the Income Tax site. Non-Resident Individual is an individual who is not a resident of India for tax purposes. In order to determine whether an Individual is a Non-Resident or not, his residential status is required to be determined u/s 6 of the Income Tax Act, 1961 as given below: An individual will be treated as a Resident in India in any previous year if he / she satisfies any of the following conditions: 1. If he / she is in India for a period of 182 days, or more during the previous year or 2. If he / she is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year. An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year. However, in respect of an Indian citizen and a person of Indian origin who visits India during the year, the period of 60 days as mentioned in (2) above shall be substituted with 182 days. The similar concession is provided to the Indian citizen who leaves India in any previous year as a crew member or for the purpose of employment outside India. The Finance Act, 2020, w.e.f. Assessment Year 2021-22 has amended the above exception to provide that the period of 60 days as mentioned in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose Total Income, other than Income from Foreign Sources, exceeds ₹ 15 lakh during the previous year. The Finance Act, 2020 has also introduced new Section 6(1A) which is applicable from Assessment Year 2021-22. It provides than an Indian citizen earning Total Income in excess of ₹ 15 lakh (other than income from foreign sources) shall be deemed to be Resident in India if he / she is not liable to pay tax in any country.
