@i am nobody: I'll research on this case but you must ensure that you're not the beneficial owner of the company - or - the effective place of management is located outside the country of residence. If you can prove any of these then you may have some chance but the income is still locally sourced so I don't see the point.
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Best Country for Trading (Tax efficiency)
- Thread starter ET873
- Start date
@i am nobody: I'll research on this case but you must ensure that you're not the beneficial owner of the company - or - the effective place of management is located outside the country of residence. If you can prove any of these then you may have some chance but the income is still locally sourced so I don't see the point.
Everybody has the right to move freely and taxes are part of the location cost of doing business, so influences the decision where to go.
If you pay 10% instead of 40% corporate taxes, then this is an economical fact, like every cost. The profits of the company will be about 50% higher. Making profits the the most essential part of doing business, so clearly economical.
@i am nobody: I can't argue with this because you're 100% correct. However the problem is still the same. The effective place of management is located onshore since you're either the director or the person who controls the company from the shadow thus the offshore company is a resident company and it's liable for the local taxes. If you can establish the management offshore then it would work.
So the question of the day is, how to establish the effective place of management offshore while the company's only source of income is the profits you make by trading financial instruments?
[ Btw, if you could setup a company in a low-tax jurisdiction anywhere in Europe just because of the free movement agreements then I could setup a company in Gibraltar where the tax rate is 0% for non-resident companies. However this is the problem. Gibraltar would call my company non-resident since it's controlled from abroad so they wouldn't ask for taxes. Consequently the country, where I reside would tax my company regardless of the place of incorporation. ]
So the question of the day is, how to establish the effective place of management offshore while the company's only source of income is the profits you make by trading financial instruments?
[ Btw, if you could setup a company in a low-tax jurisdiction anywhere in Europe just because of the free movement agreements then I could setup a company in Gibraltar where the tax rate is 0% for non-resident companies. However this is the problem. Gibraltar would call my company non-resident since it's controlled from abroad so they wouldn't ask for taxes. Consequently the country, where I reside would tax my company regardless of the place of incorporation. ]
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To the bloke who posted a very long summary of what he found out :
Interesting but lol, he needs to get hands on experience
Capital gain tax in thailand ?
jail if one has sex outside marriage in one of the whores' world capital ?
I skipped much of this post btw, will check later for other reality nonsense
Interesting but lol, he needs to get hands on experience
Capital gain tax in thailand ?
jail if one has sex outside marriage in one of the whores' world capital ?
I skipped much of this post btw, will check later for other reality nonsense
@luisHK: I never said that. There's no capital gains tax in Thailand. I think you don't understand the huge difference between the capital gains and trading income. If you purchase a stock now and you sell it 2 months later then it's tax free but if you purchase stocks, with leverage and you sell it on the same day and you do this every single day then it's not capital gains but trading income.
If trading income would not be subject to taxes in Hong Kong then there would be no tax exemption incentive in HK for those hedge fund managers who are trading with foreign investors' money. Prior this tax exemption scheme the HK fund managers frequently travelled to tax-free jurisdictions to hold their company's board meeting there to be able to claim that their fund is non-resident because trading income is taxable. Again, I guess you don't understand the difference between trading income and capital gains.
https://www.kpmg.com/CN/en/IssuesAn...-New-Private-Equity-Fund-tax-exemption-v1.pdf
Sure, you can pay for escorts in Dubai. There are plenty but this doesn't mean that it's legal and plenty of people went to jail because they had sex with an escort or because they lived together with their partner.
What you're talking about is not the reality. You're talking about that if you trade in HK or in Thailand then the chances that the tax authorities finds this out is small. It might be, but if they do then you're facing with problems because simply, you're wrong. The same with Dubai, you can have sex and you might not get caught but if you will then you're in a huge trouble.
The difference between your and my approach is that you would ignore the rules because you think that the chance to get caught is small. My problem with this approach is that if you will be asked then you can't prove your point so you'd have to pay penalties. Personally I'd rather hide my income because this way I'd have control over the situation, I'd be in a better position because as long as you know the international information exchange agreements you're in control about your financial privacy thus you wouldn't depend on that whether the local tax authority is going re-classify your income as trading income or not.
If trading income would not be subject to taxes in Hong Kong then there would be no tax exemption incentive in HK for those hedge fund managers who are trading with foreign investors' money. Prior this tax exemption scheme the HK fund managers frequently travelled to tax-free jurisdictions to hold their company's board meeting there to be able to claim that their fund is non-resident because trading income is taxable. Again, I guess you don't understand the difference between trading income and capital gains.
https://www.kpmg.com/CN/en/IssuesAn...-New-Private-Equity-Fund-tax-exemption-v1.pdf
Sure, you can pay for escorts in Dubai. There are plenty but this doesn't mean that it's legal and plenty of people went to jail because they had sex with an escort or because they lived together with their partner.
What you're talking about is not the reality. You're talking about that if you trade in HK or in Thailand then the chances that the tax authorities finds this out is small. It might be, but if they do then you're facing with problems because simply, you're wrong. The same with Dubai, you can have sex and you might not get caught but if you will then you're in a huge trouble.
The difference between your and my approach is that you would ignore the rules because you think that the chance to get caught is small. My problem with this approach is that if you will be asked then you can't prove your point so you'd have to pay penalties. Personally I'd rather hide my income because this way I'd have control over the situation, I'd be in a better position because as long as you know the international information exchange agreements you're in control about your financial privacy thus you wouldn't depend on that whether the local tax authority is going re-classify your income as trading income or not.
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@luisHK Personally I'd rather hide my income because this way I'd have control over the situation, I'd be in a better position because as long as you know the international information exchange agreements you're in control about your financial privacy thus you wouldn't depend on that whether the local tax authority is going re-classify your income as trading income or not.
Yes that makes sense, that's why it would be very odd for any expat to pay taxes in Thailand on cap gains or trading income or any income from outside Thailand. I used to live there and I didn't know many (any ?) people declaring their non Thailand based income to the local tax authorities (nor much locally sourced income for that matter)
in HK I can believe things getting more irky for fund managers, but my understanding is the ird won't ask too many questions about one's dealings in offshore entities as well as being lax to requalify cap gains into trading income for individual traders - yet my experience with HK is also the place becoming less and less business friendly.
As of Dubai, it's not only prostitutes, it appears to have a good dating scene for single expats. It is worrying there on how the laws are implemented but I'm curious on wether you could corroborate your "plenty of people went to jail etc..." claim, I heard there stories of well off expats being bothered over affairs their maids and other house staff had with other staff but they seem to be left in peace with their own dating life.
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@luisHK : I don't know to be honest but I wouldn't risk this. Can you imagine having sex while you're afraid of going to jail? Obviously the police officers are not going to knock on each door to check whether there is some illegal activity or not however if your Arabian neighbor doesn't like your behavior then he/she calls the police and they'll break into your apartment. If you're with a girl in your bed at that moment then you're unlucky. So the problem is that if someone calls the police and reports you then they will come and check whether you're with a girl or not because they're obligated to do so.
Exactly, this mistake is made by many many people. Almost all countires that have no capital gains, tax people on trading. Depends of what you trade, how you trade, frequency and equipment used when you trade, at least in my native country. Sometimes they tax too if you have no other income than trading.I think you don't understand the huge difference between the capital gains and trading income. If you purchase a stock now and you sell it 2 months later then it's tax free but if you purchase stocks, with leverage and you sell it on the same day and you do this every single day then it's not capital gains but trading income.
As of Dubai, it's not only prostitutes, it appears to have a good dating scene for single expats. It is worrying there on how the laws are implemented but I'm curious on wether you could corroborate your "plenty of people went to jail etc..." claim, I heard there stories of well off expats being bothered over affairs their maids and other house staff had with other staff but they seem to be left in peace with their own dating life.
I know a girl who lived and worked as expat in Dubai for over 5 years. One day she was in a park a whole afternoon and evening just chatting and having a drink with friends. Around 10 PM some kind of religious police (she told me the exact name but I forgot it) approached them and ask what they were doing in the park. Then this police started to call a few names, names from people who were apparently there. So police had already checked all the mobile phones in that area and found the names of te owners of these phones before they came to check them. The expats could leave but the non expats had to stay for interrogation.
Creepy. Gives me the same feeling as when I go to Russia. Anything can happen to you and you can even disappear for ever without any trace. Would never go and live there.
You have to be careful with just looking at capital gains tax. Many countries such as Switzerland and Netherlands classify short-term trading as regular income, not capital gains.Among others, Argentina, Egypt, Hong Kong, Jamaica, Singapore, Switzerland, Turkey, and the UAE have no capital gains tax.
Japan and the Netherlands have effectively negligible capital gains tax.