Securities firm wary of impact on individual investors from capital gains tax
The new capital gains tax regulations in Thailand must be detailed and concise enough so that they do not discourage individual Thai investors from investing in the stock market, the head of a securities firm said on Thursday.
The remarks by Kampol Jantavibool, the CEO of KKP Dime Securities Company, came as the company launched a new service that allows users to trade shares on Thailand's stock exchanges through its Dime! application.
Individuals can now begin trading Thai shares with a minimum of 50 baht, he said.
The debate on Thailand's capital gains tax policy revived after the newly appointed government considered enforcing the tax on those who earn income from sources outside the country through their work, business and asset investment.
As Thailand's only international stock trading app, Kampol acknowledged that the law would have a direct impact on his business, pointing out that 70% of its users trade on Wall Street.
He personally believed that investing abroad is a viable option for saving.
He explained that taxation would be a major concern for minor investors, which could prompt them to postpone trading in the foreign stock market. The change would eliminate the possibility of earning higher returns.
Collecting taxes on foreign investments would significantly raise investment costs while also having a psychological impact on investors' investments, he noted.
However, he said that he was not opposed in principle to the government levying capital gains tax, but the law should be fair to all parties and take into account individual investors who do not have a large amount of money to trade.
According to Dimes!, the stock market is becoming more popular among the younger generation as a means of accumulating and saving wealth. This would ensure their financial security after they retire.
Meanwhile, the more the number of people who invest in the stock market, particularly the Thai market, the more opportunities for businesses to grow.
"More clarity would be appreciated. I'd like clearer principles for tax collection, such as how much and when to collect. Tax should be collected in a fair manner. There should be no duplication. It must be reasonable, taking into account the differences between the various types of investors. Overgeneralisation would obstruct opportunities for small investors," he said.
He noted that regardless of the outcome of the law, Dime! would use its expertise to explore other strategies to generate investment opportunities for its clients.
Dime!'s investment value has gradually grown to more than 5 billion baht since providing trading on Wall Street in 2022, and it is expected to reach 10 billion baht by the end of next year.
Kampol attributed its success to its core principle of making investing in stocks simple, easy, and accessible to all.
He said that this year his team had decided to expand its services to include the Thai stock market, making Dime! the first and only application in Thailand that allowed users to trade in both the domestic and international markets.
The new services included new features and functions to educate and empower investors, he said.
KKP Dime is a business division of Kiatnakin Phatra Financial Group. Its goals are to make financial products and investment accessible to all, regardless of knowledge, experience, wealth, or income.