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FX Taxes

  • #1
  • First Post: Nov 5, 2009 1:03pm Nov 5, 2009 1:03pm
Hi, i'd like to know something.


I'm not from the US, but i have an account with a broker in the US. My country's (Brazil) taxes are 15% on capital gains, payable only when i withdraw the funds from the broker acc to my bank acc in Brazil.

Suppose i build up my account considerably and decide to change country, to move to a country where there are no taxes on FX. I have never withdrawn anything from my acc.

So when i move out of my country, will i have to pay the taxes on the profits i made while living in Brazil even if i haven't withdrawn anything from the account?

Also, how hard (or how likely) is it for a country to find out how much i made in my account with a foreign broker?
freedom
  • #2
  • Nov 5, 2009 4:50pm Nov 5, 2009 4:50pm
Quoting equilibrium6
Hi, i'd like to know something.


I'm not from the US, but i have an account with a broker in the US. My country's (Brazil) taxes are 15% on capital gains, payable only when i withdraw the funds from the broker acc to my bank acc in Brazil.

Suppose i build up my account considerably and decide to change country, to move to a country where there are no taxes on FX. I have never withdrawn anything from my acc.

So when i move out of my country, will i have to pay the taxes on the profits i made while living in Brazil even if i haven't withdrawn...
In most of the countries you pay income tax and an income is everything that comes to your bank account (for example from the Forex broker). So, it will be very hard for you to avoid taxes. By the way, 15% is not that much.
  • #3
  • Nov 5, 2009 5:57pm Nov 5, 2009 5:57pm
Quoting enivid
In most of the countries you pay income tax and an income is everything that comes to your bank account (for example from the Forex broker). So, it will be very hard for you to avoid taxes.
Yes but my question is what if i don't send any money from my broker account to my bank account until i change country?



Quoting enivid
By the way, 15% is not that much.
No, it isn't, but any amount is a lot to give to parasites who aren't deserving of any money.
freedom
  • #4
  • Nov 6, 2009 4:26am Nov 6, 2009 4:26am
Quoting equilibrium6
Yes but my question is what if i don't send any money from my broker account to my bank account until i change country?
But will you send money to your bank account after you change country? Once you do that - that will be an income, which should be taxed.

Quoting equilibrium6
No, it isn't, but any amount is a lot to give to parasites who aren't deserving of any money.
Eh?
  • #5
  • Nov 6, 2009 5:20am Nov 6, 2009 5:20am
Quoting enivid
But will you send money to your bank account after you change country? Once you do that - that will be an income, which should be taxed.

But the country i'll be in will have no taxes on FX gains. So you're saying that once i change country and then withdraw some money from the broker acc, my previous country will somehow demand me to pay the taxes on the profits i made while i was living on it? How will they do that?

I'm looking for informed answers here, do you really know what youj're talking about or you're just guessing?
freedom
  • #6
  • Nov 6, 2009 6:11am Nov 6, 2009 6:11am
Which country has no tax on fx gains. And more importantly, how much have you made for it to be worth moving country for?


max
Gravity goes both ways in forex...
  • #7
  • Nov 6, 2009 7:00am Nov 6, 2009 7:00am
Quoting equilibrium6
But the country i'll be in will have no taxes on FX gains.
As I have said, most countries, including USA, tax all personal income (with certain exceptions) and FX gains (transfered from broker's bank account to yours) will count as such income. If you find a country that doesn't tax income or doesn't tax specifically FX gains, then, of course, you won't need to pay anything.

Quoting equilibrium6
So you're saying that once i change country and then withdraw some money from the broker acc, my previous country will somehow demand me to pay the taxes on the profits i made while i was living on it? How will they do that?
I am not saying that and I am quite sure that your previous country won't chase you for your taxes .

Quoting equilibrium6
I'm looking for informed answers here, do you really know what youj're talking about or you're just guessing?
As I have said, that depends on where are you moving to. In USA - the personal income is taxed and FX gains are considered a personal income. As for Brazil, I don't know.
  • #8
  • Nov 6, 2009 7:51am Nov 6, 2009 7:51am
Quoting enivid
As I have said, most countries, including USA, tax all personal income (with certain exceptions) and FX gains (transfered from broker's bank account to yours) will count as such income. If you find a country that doesn't tax income or doesn't tax specifically FX gains, then, of course, you won't need to pay anything.

FX gains count as capital gains income as far as i know. So you're saying that in the US capital gains are taxed as personal income? This doesn't make sense.

To answer max pips, there are several countries that don't tax FX gains, just look at the list in the link.
freedom
  • #9
  • Nov 6, 2009 8:06am Nov 6, 2009 8:06am
Here in the US, capital gains is filed on the same form as personal income tax. It's a sub-item.

As for whether you pay taxes, yes you probably will have to. If you made it while in Brazil, you'll probably have to pay taxes to Brazil.
  • #10
  • Last Post: Nov 6, 2009 8:27am Nov 6, 2009 8:27am
Quoting equilibrium6
Hi, i'd like to know something.


I'm not from the US, but i have an account with a broker in the US. My country's (Brazil) taxes are 15% on capital gains, payable only when i withdraw the funds from the broker acc to my bank acc in Brazil.

Suppose i build up my account considerably and decide to change country, to move to a country where there are no taxes on FX. I have never withdrawn anything from my acc.

So when i move out of my country, will i have to pay the taxes on the profits i made while living in Brazil even if i haven't withdrawn...
The only such instance is in the UK where you have spread betting which from what I have heard comes under gambling therefore provided gambling is not your profession it comes under the tax exempt code, like lottories and prize give aways. Im not 100% on the above but I have heard of it. Prehaps someone should clarify.

As for 15%, it is not much. Here in Australia if you happen to make in excess of 6K you pay 15%, in excess of 34K and it gets better at 30% plus. If you are planning on making a huge amount (dont we all) then exploring your nations loop holes and company setups may be a viable option.

For example, again in Australia. You can set up a company in the form of a trust, where you make enough per trust beneficiary (normally relatives and siblings upto $6000) which is tax exempt. If it worries you that much, get some tax, legal and account advice on ways to minimise your expose to higher taxes. It may be the best couple of hundred dollars you can spend, and if your set up as a company usually they can be written off as a deduction (expenses).

Skipping countries will not lead to freedom of tax, in most cases when you return to your home country you may be liable for taxes. Like I say, best to speak to a qualified party in regards to these issues if they worry you so much.

Razor
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