US tax implication for non-us citizen.

[polee2000]

What is the US tax implication. If my buddy (a non-US citizen) residing oversea trades US index futures with IB. Does he have to file any tax papers ?

 

[ck9]

as far as i know he would need to file a w8-ben form. then he only would have to pay taxes on capital gains in his home country.
on dividends there is still a 15% witholding. maybe there is a way to get that back from the irs but i have no idea how - never tried that.

regards

 

[NYSEProTrader]

Quote from polee2000:

What is the US tax implication if my buddy (a non-US citizen) residing oversea trades US index futures with IB.
Does he have to file any tax papers ?

Have him carefully read the following, including click-throughs, regarding non-residents trading in U.S.-based accounts:

http://www.greencompany.com/EducationCenter/GTTRecTraTypNonResident.shtml

 

[gkadir]

I am having the same issues. I thought it may work if you set up a deleware company and not pay tax, but you have to pay federal tax, does anyone know how to get around paying federal tax?
I live outside the USA.
thx

 

[50 cent]

NYSEProTrader, thanks for article.