The new German derivatives trading tax law

Discussion in 'Taxes and Accounting' started by anon9812, Jun 28, 2021.

  1. USDJPY

    USDJPY

    What are the implications for an American trading DAX futures and Bund futures?
     
    #31     Jul 3, 2021
  2. virtusa

    virtusa

    Logically the tax should only be for Germans living in Germany.
    You should check if there is a double tax treaty between the US and Germany.
     
    #32     Jul 5, 2021
  3. USDJPY

    USDJPY

    Thanks. Last time I traded Dax there wasn't.
     
    #33     Jul 5, 2021
  4. virtusa

    virtusa

    #34     Jul 5, 2021
  5. USDJPY

    USDJPY

    I misunderstood what you meant about "double taxation treaty". What I meant to say was last time I traded German futures I only paid American taxes as an American living in the United States.

    So as I understand it the tax does not apply to American traders living in America?
     
    #35     Jul 5, 2021
  6. virtusa

    virtusa

    Germany cannot tax citizens from another country that don't live in Germany. In fact no country can do that.
     
    #36     Jul 5, 2021
  7. USDJPY

    USDJPY

    Thanks for the clarification.
     
    #37     Jul 5, 2021
  8. anon9812

    anon9812

    Also just the US can tax its citizens even when they don't live in the country. Only the US and Eritrea does that.
     
    #38     Jul 6, 2021
  9. virtusa

    virtusa

    Exactly. That's part of the "American dream".

    I have friends (European nationality) that went for a 1 year job to the US. Their son was born there three months before they went back to Europe. Today that son is almost 18 years and has to go thru procedures to avoid that he will be taxed as an American. He was less than 3 months of his life in the US and lived whole his life in Europe with a European nationality.
     
    #39     Jul 6, 2021