Breaking: Interactive Brokers lite commission free

Discussion in 'Interactive Brokers' started by ZBZB, Sep 26, 2019.

  1. Sig

    Sig

    To be fair if the tax cut could be rammed through using reconciliation this probably could to, so the Senate could probably get it done with a simple majority.
     
    #91     Oct 21, 2019
  2. If you trade algorithmically then you can simply locate your server outside the country. Tax on transactions is assessed based on where the decision of order submission has been made. That fact was the biggest factor why almost all algorithmic trading has left Japan after the financial crisis to Hong Kong and Singapore.

     
    #92     Oct 22, 2019
  3. That is ridiculously high and puts almost everyone out of business. I would not spend a second in a country that would kill my career. I would seriously look into moving your trading business out of Belgium.

     
    Last edited: Oct 22, 2019
    #93     Oct 22, 2019
  4. DevBru

    DevBru

    It isn't as easy as just setting up a business abroad and running the algorithm from there.

    I will need to prove that i am managing my business in the country it is based in. If i am unable to provide that evidence or the government can prove that i haven't been managing my business from that country then i am doing illegal tax evasion.

    It is possible to set up a business with a local and make him/her a partner in the business so they can do the management, but that also means they can access other information about your business you might want to keep private.

    Since i am living a 15 minute drive away from the border with The Netherlands i will start a business there. In total i will be paying around 50% tax but this is standard in the EU for country's like The Netherlands, Belgium, France, Germany, ...
     
    #94     Oct 22, 2019
  5. If my understanding is correct then you can split income from regular business operations and income from trading operations. For the former I agree with what you said regarding proof of business operations and its location. For the latter it should matter where the execution occurs, not where the algorithm was developed. The devil is obviously in the detail and Belgium, like every other country has its own laws, I just know from an associate that how I described it is how it works in Germany and Switzerland.

     
    #95     Oct 22, 2019
  6. DevBru

    DevBru

    I will ask my accountant again to be sure.

    There is another reason to not trade stocks in Belgium. If you hold the stock for less that 6 months you have to pay taxes on all profits made without being able to deduct the losses.

    Meaning if you make €200K profit and €100K losses in one tax year, you have to pay 25% tax on the €200K profit you made instead of paying taxes on the net profit you made, then there is also additional taxes if you want to withdraw the money from your business account to your personal account (up to 50%), social security taxes, city taxes, ...

    It is basically impossible to trade stocks in Belgium and make some profit after tax.
     
    #96     Oct 22, 2019
  7. Are you sure you are not allowed to file and pay tax on your trading in box 3?

    I plan to contact the Dutch tax authorities to ask whether my trading belongs to box 3 or not? I suspect it does not.

    I have not been able to find an email address on their site:
    https://www.belastingdienst.nl/wps/...ct/calling/tax_information_line_for_residents
     
    #97     Oct 23, 2019
  8. DevBru

    DevBru

    It depends, if you start a business or trading is your only income then it will be taxed in box 1.
    If you have a full time job and do some trading on the side then it will be taxed in box 3.
     
    #98     Oct 23, 2019
    Maverick2608 likes this.