how does taxation go for non US citizen living outside the US. I filled out the w8ben form, and if I understand correctly I do not need to pay taxes in the US, but in my home country. Is this correct?
Are all countries in the same situation, or only those for which there are some additional tax treaties about avoiding double taxation?
This is correct in most cases. However it would not be a disadvantage to reveal which foreign country do you have in mind.
How about the so-called Eastern Europe, which actually is more like Central Europe, and by that I mean the countries of the former Soviet block such as Poland, the Czeck Republic, and Slovakia. I am mainly interested in Poland, but would also like to know how these things are resolved in the other two countries.
wally Here's a link about polish tax treaties about avoiding double taxation: http://akson.sgh.waw.pl/sknpp/ustawy/umowy.html > Stany Zjednoczone > Artykul 14. A book about this topic http://zakupy.onet.pl/,363,produkt....d.pl/php/ksiazki/detale.php3?pp=301&id=512598 Poland is in OECD ( Organization for Economic Cooperation and Development ) with United States and many Western Europe countries. I dont't know how its resolved in countries like Slovakia...
You make taxable gains in the US, Are a citizen of country A but are a resident of country B. Where do you pay taxes?
If you are a US citizen you get the privilege to pay US taxes wherever you reside. You may also be liable to B depending on the local laws (places like HK do not have a capital gains tax). For most other counties (there are a few exceptions) you would only be liable to the resident country.
Check this link for some serious information: http://www.greencompany.com/nonresidenttraders.htm The key is whether you trade as a prop trader through a US based partnership, or wherther you are a retail trader. Oliver