Yes, but sound like he is doing HFT with his own program. May be he can somehow rent a server near wall street to HFT in USA while he sleeps?
Possibly but tricky if you are not living there - you have to set up a corp and everything you take out will be taxed. Being US citizen anyway meanss everything you earn worldwide is taxed in the US. For the rest of us, that would work IF (!) we MOVE to Dubai and live there (183 days of the year) so that your income is taxed in Dubai.
That is what I was thinking, he sounds like from USA, then no matter where he is, he supposes to pay tax except he doesn't report his HFT!? Do US people need to pay income tax even win money from futures, stocks? I don't know about this.
There is actually a better solution. As you said this will work only for non-US guys. Spend around 4-5 months in Dubai and other 1-2 months in some other third country, say ABC. So that in your home country, you spend less than 182 days. Then it is my understanding that you won't have to pay taxes on your income while in ABC - since you could be their on tourist visa while your server keeps running.
That is PT (Perpetual Traveller) status and that is REALLY hard to get right. Sucks - much better to legally base yourself in a low tax country that is nice enough Except when you are american... then basically you are ****** because this is about the only government that declares "citizens owe use tax whether they live in our country or not".
Depends. Either capital gains in some sort or.... well, if you do that for a living you may WANT to count that as commercial income. I definitely do - the amount of tax write offs I get from that is seriously significant