Hi I am a day trader, trading through a corporation in my own country exclusively (Canada), and profits are considered as business income. I take no overnights, have no capital gains or dividends. How does a day trader report their trades if they were made on foreign markets? For example, lets say I decided to day trade Australia. Do I have to file or report anything with the australian tax agency? Or do I simply file it all with the canadian tax agency? If anyone knows the answer I'd appreciate it. Thank you!
I have the same question for a US trader trading stocks in Canada. Also for someone in PR, under Act 22, which gets no capital gains tax. Would foreign investments in ie Canada be taxed by Canadian government instead?
You report where your company is incorporated and where the place of origin is where the trades are placed, in your case Canada. You should consult with a Canadian tax advisor how those foreign gains are to be taxed. I would be interested in hearing about this as I am also operating out of Canada and contemplating of setting up a Canadian entity. I also need to hire a consultant for confirmation but from what I read you can optimize your after tax gains quite a bit depending on how much you generate in profit, the job status of your wife (if any) and if you choose to pay yourself dividends instead of income.