How is trading income taxed in Ireland? Is trading above a certain threshold taxed as a business and if so at which marginal rate?
I'm in Ireland. Its a very good time zome to get the european and US markets. I usually only trade the US futures markets at the open, after I finish working for the day.
I am from Dublin and now I'm in the US. I visited accountants over there to gather as much info as I could a few years ago. Smaller firms are very willing to set up a company for you to avail of the 12.5% corporate tax rate but they seem unaware/don't care about the legal jeopardy this puts US residents in. There is the foreign controlled company issue and also issues with how you pay yourself from the company. "Greentradertax" (US tax accountants) have addressed this and more in detail on their blog. US "persons" (citizens and green card holders) are taxed on their worldwide income no matter where they live. Setting up an offshore company as a US person does not get around that. There is a tsunami of money flowing through Dublin to avail of the low corporate tax but its not US traders. US private equity firms and large US commercial real estate funds do have tax efficient structures running through Ireland but that's a different business. Google "ICAV structure" what a solution if you were allowed to avail of it (but you can't).
in order to know what is really going on..you must have worked..or know someone who worked for one of the large financial "names" a common "setup" is to have an office in Dublin..or elsewhere..this location employs "low paid" staff..below average wages..to do balancing and invoicing on a variety of financial transactions..including trading related transactions the "work" these low paid employees carry out is not taken serious..all work is "validated" by a small senior team prior to being released summary..it is a low cost cover to avail of the low corporate tax in Ireland..I could name several big name financial institutions that do it..but will not..as it is irrelevant can US citizens use Ireland to obtain lower taxing from trading..yes..but they would need to have a relative here that they can trust with their money..which of course is the hard bit