Tax issue for non us citizens

I was thinking open an account with US broker (oanda), but i really don't know anything about US taxation law, what i wanna know am i obligate to pay any kind of tax to US as a non US citizen, non US resident, no green card holder and if i sign W8-ben?
Am i obligate report gains and losses to IRS or something like that?

No. In fact oanda provides you with a form in which you certify you don't "owe" the US government racket any protection money.

But i'm little bit confused, this is from oanda's page -

Frequently Asked Question -

Question: Why do you withhold tax of 28% for U.S persons? Why is it 30% for non U.S persons? (how did you arrive at that percentage?)

Answer: The United States Internal Revenue Service sets these rates. OANDA does not set these tax amounts.

-- So as i understood, non us persons don't pay any tax on capital gains but they do pay a withhold tax on interests which is 30%? Am i correct?

you have to complete a W-8 form.... look here:

http://fxtrade.oanda.com/register/forms

http://fxtrade.oanda.com/shared/docu...tute_w8ben.pdf

I dont know where you have found this 30% for non u.s.citizens...

please post a link.

Here is the link
http://fxtrade.oanda.com/help/faq
And then click on "Withholding taxes"

If you are NON-US and fill out the W8-Ben form you will not pay taxes in US (But maybe in your own country):

FAQ:

How do you determine the amount to be withheld?


The amount of tax to withhold is determined by whether or not you are a U.S. person, and whether you have submitted a Form W-9 or Form W-8. If you have not submitted one of these forms, withholding tax will be applied to your account(s).

I think, W8-ben form doesn't free of paying no taxes at all, it confirmes non US status and free you of paying no tax on capital gains but i'm not so sure for withholding tax on interest, it could be it allows you to pay withholding tax at reduced rate... Tax on interest is 30% for non US persons, and if w8-ben not sign and sent, non resident will pay fully 30% rate, but if w8-ben is sent non resident will pay reduced tax if US have treaty with country of client. That's how i think, but i would like if someone knows for sure to answer...

See also this:

http://www.schwab.com.hk/public/schw...eign_investors

"As a general rule, non-U.S. taxpayers (such as individuals who are neither U.S. citizens nor residents) receiving U.S. source income are subject to U.S. withholding tax. As a clearing broker firm for Charles Schwab Hong Kong located in the United States, Charles Schwab & Co., Inc. (“Schwab U.S.”) is required to withhold and remit funds to the U.S. Internal Revenue Service for such non-U.S. persons on their U.S. source income.

In order to satisfy U.S. Internal Revenue Service (IRS) tax reporting requirements, non-U.S. persons must declare their country of residence and to verify their status as a non-U.S. citizen or resident to the IRS and Schwab on IRS Form W-8BEN. Schwab U.S. will then withhold U.S. taxes from non-U.S. customers based on customer's country of residence as declared on the IRS Form W-8BEN."


And this - http://www.greencompany.com/Educatio...Resident.shtml

"If the non-resident has a U.S.-based brokerage account as a "trader" (in the business) or "investor," their U.S. broker will withhold taxes on interest and dividends only (using lower tax treaty rates if applicable). There won't be any withholding on capital gains."

yes, I imagine it really depends on the country you live and work in...

...and also if you are doing forex as a job, or only as a hobby.

I would also like to know more of this... but it is rather hard to find hard facts....

Forex is like the wild west. But if you want to be sure about this tax issue you are certainly well informed if you ask

a) your broker
and
b) your accountant

"Withholding taxes will be calculated on the amount of interest you receive on the balance of your account. This amount will be deducted at the end of the day." - from Oanda's FAQ

You are discussing withholding based upon the amount of interest you receive which will be very small compared to your account balance.

" OANDA does not deduct any amounts for tax purposes from your FXTrade Account.
As we have clients from around the world with differing tax regulations, we do not provide any tax advice, and instead recommend that you speak with your Tax Advisor or Accountant. We do report all interest amounts over USD 10 earned from trade transactions to the IRS through Form 1099-INT for U.S. persons only. Please note that Form 1099 does not include Profit/Loss." - from Oanda's FAQ

There is no capital gain or loss withholding by Oanda (ie. you make $500 profit and try to wire it out...
you will get $500.)
They just keep records of any interest income over $10 and report that to the IRS.

You, the individual, are responsible for reporting your own profit/loss to your governing body in your country.

Note: Being an active trader since Feb 2010, and not holding many overnight positions, I have actually paid interest NOT received... about $9 on a starting account balance of $1000.

If you plan on holding longer-term trades and/or attempting some "carry trade" strategies you MIGHT make some small interest. Otherwise, I wouldn't even give this a second thought.

Well, in my country there is no any kind tax on forex or stocks, so i'm more concern about obligation to US. Didn't realize that are such small amounts. So, that tax referes only on received interests not on my profits or total amount of money on account.
If Oanda automatically withholds those interests tax and sends them to IRS, and me as non US person don't have to do anything like reporting interests, gains, loss, to RSI on some kind of form or any other birocracy thing, then everything is ok.