Company's trader-agent location(residency/domicile) and EA/Robot server location and trading tx?

Discussion in 'Taxes and Accounting' started by Blonde, Mar 25, 2021.

  1. Blonde

    Blonde

    Hiya,



    I want to know if the Company's trader-agent(the one who do the trades in case of manual trading) location(residency/domicile) and EA/Robot server location(in case of Automated strategy algorithmic trading) and these trading tx calculation does affect the annual trading tx that I pay as a corporate trader?
    Structure as following:
    -Company is doing the trading in financial markets(e.g. FX or Futures or both)
    -Company is doing manual trading as the company has a trader-agent that she/he is doing trading from the company's location or maybe abroad or both.
    -Company is doing a Automated strategy algorithmic trading and the server for trading Robot is located in the corporate or it's on the abroad near to Exchange servers that FX trading happens or near the Broker's Server's in the country that broker does have the server for FX trading.
    -Trading company is registered and located in Country-A, the Manual trading agent is on Country-B, and Robot(Algorithmic trading EA) is located in Country-C.

    When it comes to annual tx, part of the trading happens manually by the Company's trader-agent(the one who does the trades in case of manual trading) location(residency/domicile) if it's different from the company's location, how it may affect the company's annual tx? e.g. Company, if is in the country-A and trader-agent, is in country-B, then the company pay's annual tx based on the corporate tx rate in country-A or country-B?

    When it comes to annual tx, part of the trading happens automatically by Automated strategy algorithmic trading if the Robot is the abroad near to Exchange servers that FX trading happens or near the Broker's Server's in the country that broker does have the server for FX trading, what happens for this part of tx filing? Will Robot's server location affects the corporate tx rate as if the Robot is on a server in Country-C and the company is in Country-A, which country's corporate tx rate will be considered for the annual tx rate of the company?

    Overall I believe we shall use one country's corporate tx rate when we paying annual tx. And it's not possible to keep the Robot in Country-A because of latency in trades it shall be located near to the server of FX Exchange or Broker's Server's, thus this is inevitable that Robot is not in the Country-A where corporate is located. When it comes to corporate tx, will I use the company's registered location's tx rate, and the Broker compliance team and local-tx-office will be alright, or shall I divide the corporate tx into few rates, e.g. For manual trading I shall use country-B's tx rate where the trading agent is located and for automated trading shall I use country-C corporate tx rate?

    What is the most professional way to minimize issues and comply with all the tx-law and keep the trading scheme of manual and automated trading and pay only one corporate tx rate annually if this is an option?

    Will if this company if only do the Robot trading(while the robot server is in country-C and the company is registered in country-A), will it make it in a better situation(upper hand) in the annual tx filing complying with the law, as a company can have the server to run the EA/Robot but the place the Robot place the trades does not affect the actual corporate tx law and corporate tx rate?


    Tnx and best of luck