It will be interesting how changing the country of prop firm from U.S. to UK will affect taxes for foreign traders. Were there any other online prop-trading company operating from Europe for such scale? From what I have seen here, with Helios you had to apply for U.S. taxpayer ID and you paid the taxes in U.S. for your share of profit. Then you had to figure out if any other taxes need to be paid in your country apart from that, and how to categorize your income. This was rather complicated. Will it be easier with the new firm?
Most, if not all, EU countries have a tax treaty with the USA preventing double taxation, so when you were funded with Helios you had report your income but not pay taxes in the USA. Not sure it will be easier now with Brexit. Hopefully next post from E2T will include all details and hopefully the site will be updated in the next few days ...
Not true. My country has a treaty avoiding double taxation with the US and i would not have to pay taxes in the US. Most EU countries do have similar treaties with the USA. "If a foreign national qualifies for an exemption because of a tax treaty benefit, little or no withholding will be taken from a payment. The foreign national must have a U.S. tax identification number in order to claim the benefit." "A nonresident alien (for tax purposes) must pay taxes on any income earned in the U.S. to the Internal Revenue Service, unless the person can claim a tax treaty benefit."
Yes, if i would be a partner in a LLC as Helios i would not have to pay taxes in the USA when i withdraw the money to the EU, thanks to the treaty. If i have a international TIN and have completed the W-8BEN or W-8BEN-E form. "A nonresident alien (for tax purposes) must pay taxes on any income earned in the U.S. to the Internal Revenue Service, unless the person can claim a tax treaty benefit."
@DevBru is correct that in most cases, if a person is not a US citizen or resident alien, and they are making money through a US business entity, then they will not have to pay income tax to the US and to their country of residence. It is correct that most European countries have a tax treaty that is designed to prevent double taxation. In most cases, the person is still required to file US tax return, even if no tax is due. However, what @DevBru said is a bit inaccurate. It is not the act of "withdrawing" the money to the EU that triggers potential taxation by the US. Income tax in the US is triggered when the money is earned, i.e., when you close a position, and when the funds become available to you for distribution from the partnership. The income must be reported in the year in which it is earned. Tax may be avoided due to the treaty. But it is completely irrelevant when, or even if, the money is "withdrawn" to the EU. Under US tax law, a partner who trades in a partnership or LLC must pay tax on trading profits in the year in which the profits are earned by the partnership, even if the money is not actually distributed out to the partners. That basic principle is applicable even if the partner is a nonresident alien. The terms of a treaty may well allow a nonresident to avoid double taxation. BMK
Hi there, those company sells an opportunity to get funded indeed for begginer who won't get any chance to get funded by propfirm who asks track record, some of them ask 3 years track records. They sell you an opportunity to challenge yourself in an environment with strong rules. They sell you a chance to prove yourself that you are able to trade and generate money in trading. They sell you all that for a very small fee that certainly has to covers differents expenses and to generate money (that is the root of any business..) Ad for those who are good enought to pass all the steps and get funded, then they get the real chance to make serious money, another important step. ALL that ! for a few hundred dollars.... i think it is more than good to test yourself as a trader. For those who prefers go with personal account, go for it ! For those who keep criticize the model, and they have the right to give their opinions, why coming over and over again to challenge their team, i believe they answer all importants questions that concern the potential traders, that is it ! We all know that most of the traders fails, and they fail in combine the same way they fail in the real broker account world, so what? there still will be some good traders that worked hard enough to pass thoses challenges, then it is up to anyone... PS : sorry for my english
Still waiting for an answer ... How do you expect people to take your organisation serious when you can't even provide such important information? The new partner is in the UK so i assume the entire structure will be different, traders will no longer be a partner in an US company but in an UK company? Or isn't that the case anymore? Explain how the system wil work instead of ignoring this question like you did last time i asked.