You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
More on the Sydney, Australia move
- Thread starter nravo
- Start date
So if I set up an AUS superfund as a US trader, I am contributing to an AUS retirment scheme? Can I just transfer that money into my US IRAs when I leave/
Quote from Runningbear:
If you want to save on tax, consider setting up an Australian self managed super fund. You'll only pay 10% on contributions and depending on your age, you can deposit up to 50K a year I think. The more you contibute, the more you reduce your taxible income. It's designed that way to encourage Australian to save for retirement.
If you manage your own fund (which is pretty much the same as managing a company), you can then invest that money in just about anything. But I think there are some restrictions on leveraged investments. You may even decide to loan yourself back the money for trading purposes and charge yourself interest.
Only catch with a super investment is you can't access the money till you're 55.
If you're interested do a google search on 'self managed super'.
Offshore entity maybe be difficult as you're a US citizen which means you're obligated to pay on what your earn anywhere. And the US are better than anyone at tracking their citizens. So be careful here.
Runningbear
You may want to consider setting up a company and obtaining a dealers licence or an investment advisors licence. The benefits of this are considerable for tax purposes here.
Companies with dealers licences and or investment advisors licences qualify for "Offhore Unit Status" under Section 128AE (2) of the Income Tax Act.
Thus means, that trading activity from sources outside Australia, including stocks. shares. futures, forex, gold, hedge fund management fees are taxed at a concessional rate of only 10 per cent. The standard corporate tax rate here is 30 per cent.
Companies with dealers licences and or investment advisors licences qualify for "Offhore Unit Status" under Section 128AE (2) of the Income Tax Act.
Thus means, that trading activity from sources outside Australia, including stocks. shares. futures, forex, gold, hedge fund management fees are taxed at a concessional rate of only 10 per cent. The standard corporate tax rate here is 30 per cent.
I have a call set up with the accountants for next week, but in the meantime I keep reading that there is a relatively new four-year period for US expats in Australian, who are tax residents, which I believe there is no way around for us. And during that four-year period, AUS will not tax worldwide income.
BTW, I'm a tax-paying liberal Democrat, unlike many traders. But, IMHO, taxation of worldwide income by a country you're not even a citzen of is a bit of an overreach. I mean, if I sell or rent my house in Florida while in Australia for a yer or two, Australia wants to tax that income. Not cricket, in my book. This four-year exemption period, if it exists, certainly seems proper.
BTW, I'm a tax-paying liberal Democrat, unlike many traders. But, IMHO, taxation of worldwide income by a country you're not even a citzen of is a bit of an overreach. I mean, if I sell or rent my house in Florida while in Australia for a yer or two, Australia wants to tax that income. Not cricket, in my book. This four-year exemption period, if it exists, certainly seems proper.
Quote from Strath:
You may want to consider setting up a company and obtaining a dealers licence or an investment advisors licence. The benefits of this are considerable for tax purposes here.
Companies with dealers licences and or investment advisors licences qualify for "Offhore Unit Status" under Section 128AE (2) of the Income Tax Act.
Thus means, that trading activity from sources outside Australia, including stocks. shares. futures, forex, gold, hedge fund management fees are taxed at a concessional rate of only 10 per cent. The standard corporate tax rate here is 30 per cent.
The only effective way of not paying any Australian income taxes is not to become a "Tax Resident". How this is done is by using the 183 day rule. This rule states that if a person is physically in Australia for less than 183 days of a year then that person is not a "Tax resident". So you might want to consider being here for less than 6 months for a year and come back again to Australia 184 days later again.
Not an option. will likely be there 10-11 months for each of the next two years. Don't mindpaying taxes on income I earn in Australia. But -- blimey, mate! --I'm hearing AUS wants to take the passive income I generate in the states from rental properties, capital gains from real estate sales, income from US dividends and interest -- even from investments, like munis, that are tax-exempt in the U.S. Hence my "not cricket" response.
Quote from Strath:
The only effective way of not paying any Australian income taxes is not to become a "Tax Resident". How this is done is by using the 183 day rule. This rule states that if a person is physically in Australia for less than 183 days of a year then that person is not a "Tax resident". So you might want to consider being here for less than 6 months for a year and come back again to Australia 184 days later again.
Talking to one this week.
Quote from acronym:
No, that doesnt sound right, at all, your main liabilities in this situation should derive from the irs-
the tricky bit is spousal income, and their status, really, thats where the big factors come into play.
You need a good accountant/lawyer, period.
Quote from Strath:
You may want to consider setting up a company and obtaining a dealers licence or an investment advisors licence. The benefits of this are considerable for tax purposes here.
Companies with dealers licences and or investment advisors licences qualify for "Offhore Unit Status" under Section 128AE (2) of the Income Tax Act.
Thus means, that trading activity from sources outside Australia, including stocks. shares. futures, forex, gold, hedge fund management fees are taxed at a concessional rate of only 10 per cent. The standard corporate tax rate here is 30 per cent.
Interesting, I have never heard of this before. I'm an Australian citizen trading through a company structure. Could I take advantage of this for my trading in foreign futures markets?