Best Country for Trading (Tax efficiency)

[Daal]

I don't know who told you these, literally.
"I mean, this is the guy that goes around thinking people on tourists visas staying in a country for a month or two are liable to local taxes"
How do you come up with these theories?

Look at what you said a few months ago "My logic is that even if I'm just a tourist, I'd still be making significant income with forex trading while I'm in their country thus it may be considered domestic income and it would become declarable and taxable as well. I mean those positions which I have both opened and closed while I was in that particular country."

Btw yes, US banks can open a bank account remotely if you have a SSN or you have been a resident there or you have some credit history. However a real NRA cannot open a bank account in the US remotely if that bank doesn't have a branch overseas which see you in person, it'd be against the law. If your bank does that then they're breaking the law, literally. Just saying.

Once again this clown thinks he knows more than the compliance department of a US bank (that was publicly traded) in a post Dodd Frank world. Please everyone do yourself a favor and stop listening to this man

 

[dw31583]

Look at what you said a few months ago "My logic is that even if I'm just a tourist, I'd still be making significant income with forex trading while I'm in their country thus it may be considered domestic income and it would become declarable and taxable as well. I mean those positions which I have both opened and closed while I was in that particular country."


Once again this clown thinks he knows more than the compliance department of a US bank (that was publicly traded) in a post Dodd Frank world. Please everyone do yourself a favor and stop listening to this man

Said by the guy who says that the US laws doesn't mean anything, said by the guy who calls PWC a scam. Understood buddy. You're talking about fiction my friend. If there is a bank which opens a personal bank account for you without visiting the bank, ever, then share with the folks, they'll be happy to know about it. Until then you're lying.

Instead of lying about the laws also, you should really check at least those countries' laws you're referring to. A NRA's trading income may be taxable in certain cases, whether you like or not.

But we can easily test this Mr. Daal. Come with me to the UK, US or a country we agree in, make some money with trading (not investments!), I'll call the tax man and ask them whether you're liable to taxes as a non resident on the income sourced from the UK or US respectively. If you're willing to do this and you're not subject to taxes on your trading income while you're present there then I'll give you a pre-agreed sum of money. Deal?

 

[Daal]

Said by the guy who says that the US laws doesn't mean anything, said by the guy who calls PWC a scam. Understood buddy. You're talking about fiction my friend. If there is a bank which opens a personal bank account for you without visiting the bank, ever, then share with the folks, they'll be happy to know about it. Until then you're lying.

Instead of lying about the laws also, you should really check at least those countries' laws you're referring to. A NRA's trading income may be taxable in certain cases, whether you like or not.

But we can easily test this Mr. Daal. Come with me to the UK, US or a country we agree in, make some money with trading (not investments!), I'll call the tax man and ask them whether you're liable to taxes as a non resident on the income sourced from the UK or US respectively. If you're willing to do this and you're not subject to taxes on your trading income while you're present there then I'll give you a pre-agreed sum of money. Deal?

You are not giving me shit because you are just a random loon looking around for reasons to pacify your paranoia

 

[dw31583]

You are not giving me shit because you are just a random loon looking around for reasons to pacify your paranoia

You just proved that you're not so sure about your lies my friend. Anyway, I'm up to the challenge, just name the amount, date, time and the country, we'll arrange the holiday and we'll see who's correct, PWC or you.

 

[Daal]

You just proved that you're not so sure about your lies my friend. Anyway, I'm up to the challenge, just name the amount, date, time and the country, we'll arrange the holiday and we'll see who's correct, PWC or you.

lol, so I can choose any country? and PWC is an expert in all countries on earth? you are a true piece of work my friend

 

[smallStops]

Now, my psychology/mental/sprituality problems in regard to trading are sorted, I am very much interested on the issues.
As of 2017 onward, which countries do you think will be best just in terms of income taxation related to 'speculation' ?
Are there still "wild" countries where one could pull in, and do not have to 'partner' with any tax authority?

 

[dw31583]

Now, my psychology/mental/sprituality problems in regard to trading are sorted, I am very much interested on the issues.
As of 2017 onward, which countries do you think will be best just in terms of income taxation related to 'speculation' ?
Are there still "wild" countries where one could pull in, and do not have to 'partner' with any tax authority?

Like we all have said, you can either relocate to a tax-free country but that comes with a compromise as well or you can relocate to a low tax country which may also come with a compromise. No matter where you move, your life is going to be different.

0% personal income tax countries in the case you're trading on your own name: Monaco, Dubai, Bahamas, Cayman Islands and a couple of other Caribbean islands.

0% corporate tax countries in the case you're trading through a company: Dubai, Bahamas, Cayman Islands, Estonia, Isle of Man and a couple of other Caribbean islands.

Low tax countries:

Bulgaria: income tax 10%, corporate tax 10%
Hungary: income tax 15%, corporate tax 9%
Estonia: income tax 20%, corporate tax 0%
Montenegro: income tax 9%, corporate tax 9%
Lithuania: income tax 15%, corporate tax 5% up to 300,000EUR and 15% thereafter
Andorra: income tax 10%, corporate tax 10%
Paraguay: income tax 10%, corporate tax 10%
Russia: income tax 13%, corporate tax 20%

 

[swinging tick]

DW, thanks for your previous reply regarding prenups.

I don't think it was mentioned here before, so:

1) In Singapore if you do business thru corporation, they give you discounts: first 3 years it is about 5% tax rate on profits less than SG$ 300k (0% on SG$ 0-100k + 8.5% (17%/2) on SG$ 100-300k). After first 3 years they still give you 50% discount on first SGD300k. Although need to check if they still have these discounts in place.

2) Labuan (Malaysia) - you can pay ~$5k a year and not report to tax authorities at all, or if you make not much money (few tens of thousands usd, I think), you can report and pay 3% tax. That' corporate.

 

[swinging tick]

Russia: income tax 13%, corporate tax 20%

DW, you mentioned Russia on the list; for anyone making decent amounts of money, I would not recommend living there and reporting big profits to a local taxman.
If you make little money, you will be fine there, but large profits will quickly get you noticed by local bureaucrats, who may want piece of that.

Not sure about the situation in Bulgaria and Hungary, there seems to be more rule of law in this regard.

 

[Mtrader]

Not sure about the situation in Bulgaria and Hungary, there seems to be more rule of law in this regard.

Our expert DW31583 is missing many essential issues. Not only the tax rate is important.

Some things you should take care of and that were never mentioned here:

• If you have a company, yearly balance sheets have to be published. Information of these balance sheet are freely available to the public (except for a few companies). So everybody will know how much money you make, also the criminals. For at least 75% of the countries mentioned by our expert that is an issue. Paying low taxes and being robbed later can be worse than paying a bit more taxes and stay away from these countries.
• Only open accounts in a Western bank. Check shareholdership of the bank because having the name of a Western bank is not equal as being a Western bank. BNP Paribas Fortis for example is in Ukraine linked with other partners. So not a 100% daughter of the French holding company. ING on the other hand has in most of these countries 100% daughters.
• Move your money out of these low tax countries and put it in a safe country like Luxemburg, Switzerland or similar.
• Trade in your own name. Then you don’t have to publish anything. The number of people that know about you is much more limited. So, less risk. Easier to trace too who is trying to steal from you. Only a few tax people will see your income.

There are more things to take care of (especially about a special status that is available in some countries and give you a much higher security against criminals), but I will leave this to our expert DW31583 who clearly told that I know nothing about low tax countries and how to handle all the problems.
I had PWC as (one of my) consultant. They never spoke to me about all these issues. You can make your own conclusion. PWC is good in what they know. But the problem is that they don’t know everything you need to know.

Mention corporate tax alone, like DW31583 does, is misleading. Because then the money should stay in the company. If you want to spent it and take it out of the company you will pay again. So total taxe rate in Estonia, Hungary and Bulgaria are for 100% sure higher to a lot higher.