Hello guys, Let us say that I am trading from Lebanon (country in Middle east). I have an account with Interactive Brokers day trading U.S. equities. What kind of taxes will I be paying? Am I subject to U.S. taxes? Thanks
You are neither a citizen nor a resident so you have no tax obligations with the US. The exception are taxes on dividends which are withheld in the US, you might be able to subtract those from your taxes in Lebanon.
Oh so you mean if I am getting dividends, lets say dividend taxes in Lebanon are 35%. If I payed 25% dividend taxes in U.S., means in Lebanon I only owe 10% dividend taxes? However, day trading gains are not taxable in U.S., right? Thanks
Capital gains are taxed in your country of residency unless you're a US citizen, which would be Lebanon. How much you pay on dividends depends on whether you have double taxation treaties in place and such, I cannot give a definite answer on ET.
Do the same rules as capital gains apply for day trading gains? Also if my country of residency is Lebanon but I am travelling and trsding from around the world. How does the U.S view it? Id still have to pay taxes according to my country of residency or the country I live in at the moment?