Investing In The Philippines Stock Market

[intrepid]

It has average 14% taxshe has averaged 9.5% tax

 

Is this percent Tax or interest?  I suspect you ment intrest?

[Thomas]

 

Dividends:  10 %  

 

Dividends are paid so taxed in that year.

 

I thought income earned outside the US that was taxed was exempt until a certain amount was earned. 

 

Does the Philippines have a 10% capitol gains tax?  That is a bargain 

I suppouse they are low, because the rich Filipinos earn MUCH (mainly?) by their shares  :mocking:

 

(Philippine INCOME tax on the other hand is HIGH, 30 % margin tax (plus the social fees) as soon as earning more than around only 20 000p per month. Sweden is known for having high taxes, but it's WORSE in Phils, because in the Swedish tax are several insurances INCLUDED. E g Health care is almost FREE, and SSS don't have a very low max payout as in Phils, I believe no extra SSS in Phils if pay fee for more than 15 000p, but they want to get the fees at the higher amounts anyway   :)

[Gerald Glatt]

Paul, is there a brokerage that you or your bank use.  I went online and saw only two.  There are also classes that they offer, like, the market for dummies like me. I will be setting up a bank account in a few weeks and think I would amuse myself with the 5000 peso minimum. Who knows might pick a big winner and buy a flat screen.  The research involved should keep me busy until we start the house. 

[frosty (chris)]

You can buy shares that are fully franked i.e. the tax is already paid for you before you are paid the dividend, don't know if this works in P.I. but certainly does in most western share markets.

[OnMyWay]

I was looking into some long term savings / investment products for my kids.  I talked with the rep at BPI about their investment / insurance products, and it seems there might be some promise there.

 

In simple terms, you invest in some "mutual" funds run by BPI.  You can choose up to 3 from a list of about 10.  There are equity, bond or balanced choices.  Most of them have only existed since 2012ish.  Then on top of that there is a life insurance blanket.  It seems fairly complicated but it might be similar to an annuity.  The rep probably gets a nice commission up front.

 

What I found intriguing was that the rep says, if you hold it 5 years, there are no taxes to pay.  Does anybody have any idea on how I could verify that tax benefit claim?

 

https://bpi-philam.com/who_we_are.html

 

https://bpi-philam.com/investment_linked.html

 

https://bpi-philam.com/build_plus_peso.html

[PaulB]

Good idea and not a bad way to convert your money and pull it out in pesos later. Hopefully over the longer term you will get growth, and I agree on the learning about the Philippines.

What currency are you in primarily Paul? US Dollars or Sterling? I reckon (considering your situation, your age), you stick about $5000 US or even $10k in a US Dollar Account at BDO or BPI. Maybe in your wife's name, if yours is not accepted. When you come to do transactions here, living here later, a favorable banking record is going to make things a lot easier for you later on. Also pulling dollars off your own account as you might do later, avoids bank charges and always ensures a good rate.

Chris I am currently changing UAE Dirhams to Peso and wiring to the brokerage UTrade.

Thanks for your advice regarding moving money to the bank. I will certainly do this as want to have some form of banking History in the Philippines when I move full time. We currently bank with Landbank there.

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[PaulB]

Paul, is there a brokerage that you or your bank use. I went online and saw only two. There are also classes that they offer, like, the market for dummies like me. I will be setting up a bank account in a few weeks and think I would amuse myself with the 5000 peso minimum. Who knows might pick a big winner and buy a flat screen. The research involved should keep me busy until we start the house.

Gerald I am using UTrade brokerage as they provide very good reports, company info, trends etc. They also have a very good online trading system and you can transfer funds into the account from overseas.

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[Thomas]

What I found intriguing was that the rep says, if you hold it 5 years, there are no taxes to pay. Does anybody have any idea on how I could verify that tax benefit claim?

I don't know about these, but I know there have been some such saving incentives earlier.  

In simple terms, you invest in some "mutual" funds

Better buy "any" at random than buying funds (with few exceptions, and are you sure you found an exception?  :)

Because the "experts", who handle the funds, DON'T have any impressing results in average. In a test made in Sweden, their average was BEATEN by a monkey, who throw darts  :hystery:

(I believe I told somewhere else about an offer I got:  The saleslady said they had 18 % value raise. I found it ok, that was around the same I had myself for that first months of that year. During the conversation I found out 18 % was their TOTAL for the yearS since they started...  :hystery:

And such mostly crap result, they get paid for of YOUR money, if you buy their funds...

[stevewool]

Its great reading what others may or may not be doing, and i do wish you all well, but i just have no idea at all,

Yes you may make a few bob but you can also lose a few bob too, long term you have to invest , so if it goes down it has time to recover, but long term for many we will never recover

Again £200 in your saving account is still £200 in your saving account long term or short term

[Gerald Glatt]

Again £200 in your saving account is still £200 in your saving account long term or short term

 

:morning1: I was siting in a pub (bar) just shooting the bull, when someone said the dollar was only worth 64 cents.  Of course I disagreed and ask him to prove it.  He started going on about how much bread and gas had gone up, while I reached for my change counted out $1.30 asked for two dollars and told him he could keep the extra. Didn't hear from him for awhile...... :tiphat: