spieler, just looked for St. Maarten in the web. Seems to be a very vivid island with a good mixture of charming restaurants and commerce. How is living there? If I understood it right one part of the island belongs to France, the other to the Netherlands. Are these parts own countries or do they belong to their european mothers (and are by this part of the EU)? Is taxation in the netherlandic side of the island like in the Netherlands (at least concerning the very attractiv capital gains tax model)? Markus
Since I started this thread, I may as well conclude it with the information I was able to gather from 2 accountants: As a resident in the Netherlands trading through a US based LLC, I will have to pay US income taxes and Dutch social security taxes. Technically, the exposure exists that the Dutch tax authorities will disagree with the approach and may attempt to assume that you will have a fixed place of business in the Netherlands. The result would be an effective double taxation, should this happen the tax treaty contains a clause stipulating that tax authorities must liaise in order to solve the issue
I agree fully with Gene. If you are trading with Bright, there should be an accountant with Bright that knows the rules. If you can not find one local to your office, I am sure that if you PM Don here at Elite Trader, he will be more than happy to give you the contact information of the accountant/tax specialist at the firm's H.Q.. good luck.
To mhoev Sorry for the delay i was on vacacion Yes the island is shared between france and netherland antilles and not netherland and this is the trick . Because Saint martin french part is E.U. and Sint Maarten netehrland antilles is outside E.U. So i have nothing to pay on my capital gains
There is no tax haven.You have to file a form with your broker stating country of residence.If that country has a tax treaty with uncle sam,he will take no tax.If that country has no tax treaty with uncle sam he will take 30% of your profits and to hell with"no taxation without representation".
My previous post is baloney.I have searched high and low for the info you just posted.It is imposible to find it on the IRS site.Its a pity I have to post baloney to bring out the truth.
Below are the facts I sent the IRS and the response I received. Not sure if it will help any but an lot depends upon whether your country has a tax treaty with the US. The issue is quite complicated and even after talking to revenue Canada, I could not get an answer. Get this..... they wanted to mail a description of all the facts so that their "complex business situations" department could provide some kind of ruling. The minimum charge is $500 plus $500 for every additional hour it takes their researcher o come to a decision. Like I am going to pay the government money so they can decide how they would like to tax me. IRS email: Your Question Was: Situation as follows: 1. I am a Canadian Citizen residing in Canada 365 days year 2. I am considering joining an LLC in the US whose primary business is equities trading on the US Exchanges 3. All of my transactions will be conduced through the internet 4. I will receive a K1 at the end of the year 5. I personally do not have a permanent establishment in the US but the LLC does. Am I required to file a tax return with the IRS or do I receive an exemption? The Answer To Your Question Is: Hello, thank you for your inquiry and for using our Electronic Tax Law Assistance Service. If you do not have any U.S. source or other taxable U.S. income, you do not have to file a U.S. tax return. However, you may be required to submit Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, if you are or is not claiming a reduced rate of, or exemption from, withholdings. You may give the Form W-8BEN to the withholding agent or payer if you are a foreign person and who is the beneficial owner of an amount subject to withholding. If you have other taxable U.S. income and/or claiming a refund of taxes withheld in error you must file. You should file Form 1040NR, U.S. Nonresident Alien Income Tax Return. For more information on the above issue, please refer to Publication 519, U.S. Tax Guide for Aliens. We hope this information is helpful. Thank you for your honesty and cooperation in this matter.