Will i be taxed?
hi i'm a foreigner and have palced funds in a UK forex account.
Will i be taxed on the profit etc?
if you a uk citizen, you have pay local tax/income, if you outside of uk, then normally not, except you have a uk company, i think this will be changed in 4-5 years, to tax/income on service of origin.
Originally Posted by dennerle
Depending on what country you are from. If you are in the USA, you'll have to pay the taxes.
Personal, i think not, because the service and not goods! are provided and delivered in UK, which us gov department know, if you have used foreign services..
Originally Posted by Taha
you have to pay (income,sales) tax in the country where you live and where the services and goods delivered, but not for foreign, except you import goods, you have to pay customs duty and sale in the us, you have to pay income tax.
i have never payed any kind of tax for my us customers, only income tax in my home country, because i live, provide, sell, an earn profits for services in my home eu country = service of origin
but if you are unsure, please ask your tax accountant - there are differencies between services and goods! (forex brokerage is a service)
As you're no doubt aware there are two broad options for being taxed on your forex profits. You could either be a forex trader or a forex investor.
The two are completely different in tax terms (its essentially the same difference as between a property investor who purchases property to rent or a property developer who purchases property to renovate and sell).
Forex traders are subject to income tax. Potentially at 40% and even 50% after April 2010 if they have profits over £150K. Investors are subject to CGT and the 18% CGT rate.They'll also have the annual CGT exemption of around £10K to offset. Traders have a wider expense/deduction offset are classed as self employed. This means if they had no other income they'd also need to account for national insurance (class 2 at around £2.00 per week) and class 4 at 8% on profits above the primary threshold).
No messing around with the IRS. They will find you no matter where you are. So to all Forex traders, pay your taxes. It seems to be a big percentage of your capital gain. But it is not so much compared the profits you made. Treat them as commissions, or pips
Yes, you have to pay tax on profit, there's no question of running away from tax.
I agree with shirley. She is right Forex trading is taxable but you have to pay tax only on capital gain, It means you have to pay tax only on your profit which you made from forex trading.
Income tax issues are different for every person. Your best bet is to consult with a tax specialist. But you probably already know that and came here to get a feel for what he or she will tell you.
This applies to U.S. traders only who are trading with a US brokerage firm. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits.
But still a forex trader must consult with any financial consultant.
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