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How do Intеrаctivе Brоkеrs Europе do the CRS reporting?
- Thread starter DavidS
- Start date
If the account falls under FATCA it is shared with other countries and has been shared for years. FATCA is a bilateral sharing agreement and information flows both ways like CRS. See my links below for more information.
https://www.offshorecorptalk.com/th...n-us-person-deposits-in-them.22676/post-68608
https://www.offshorecorptalk.com/th...ndividuals-with-offshore-income-assets.27082/
https://www.wsj.com/articles/irs-be...t-information-to-foreign-countries-1443810584
Not yet. The next step is a centralized database with unrestricted access by all taxing authorities. All current transactions should be looked at as if it was the case today.
You are 100% right his will happen in EU. Imagine an EU wide version of AUSTRAC and then start to cry.
Get out of the EU while you still can
According to Common Reporting Standard (CRS) | IB Knowledge Base, "For accounts held by Interactive Brokers LLC, there is no reporting since the United Sates has not signed the CRS."
If a non resident opens an IBKR account with IBKR US using a US LLC (DE, WY, NV), then surely the entity won't be liable for taxes (besides 30% withhoding tax on dividend income)? If the US LLC already have their EIN, then opening an US account shouldn't be an issue.
FATCA applies when reporting is needed for a US citizen or green card holder. In this case, the while the LLC is a US entity, the members of the LLC are not US residents.
If a non resident opens an IBKR account with IBKR US using a US LLC (DE, WY, NV), then surely the entity won't be liable for taxes (besides 30% withhoding tax on dividend income)? If the US LLC already have their EIN, then opening an US account shouldn't be an issue.
FATCA applies when reporting is needed for a US citizen or green card holder. In this case, the while the LLC is a US entity, the members of the LLC are not US residents.
In fact of the matter. Therefore, how to open an account in the USA office? As far as I know, for Europe and ex-USSR countries, do they open accounts outside the US office (in Europe or Ireland)?
Being resident in UAE should get you an account with IB LLC located in Pickwick plaza in Connecticut, USA.
It is actually a smart move on their part as they might get lots of love from the eu.
IB has EU entities where they channel EU clients. If you go to US entity as EU resident they will force you to open with an EU entity. Sadly its the way they have divided up their global business to comply with local regulations i.e EU regulation on offering of financial services etc. If your from countries outside EU i.e a country with no clout like Georgia then you could be sent to US entity and likewise if your from HK then you could be sent to the HK entity and so forth. If you just go to IB site they should redirect you do correct entity base on your residency.
If you are using a US LLC, then the account will be opened through IBKR US office. If you are a non US resident in that US LLC, then besides a 30% withholding tax (as declared on your W8-BEN) on dividends, all capital gains (short term and long term, as well as crypto) are not subject to tax (though form 5472 should be filed annually).
To date, the US is non CRS compliant so the IRS does not share that information with your country of residence. For non US residents, the US is still cost effective, as the setup costs are far cheaper than many other alternatives.
Why the hell do they want form 5472? It looks like a trap, to send (someday) information to your country of residence...
People spend their lifetimes trying to escape the US tax system. Yet people want to walk straight into it like Lemmings I guess...lol. I would avoid the US financial system period. I don't even own any USD or any US stocks etc.
IB will use the address you use to open the brokerage account in order to direct you to the correct entity. If you use EU address then they send you to EU entity. If you use Mexican then.....I don't know where they will send you but I guess maybe US entity
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Understood. So if for example I am Moldova resident, I can not open IB account exactly in US right? Personal account I mean
You can try to open a demo account to see what happens. I don't know for every country to which IB entity they will channel you.
I know that Serbian residents can open directly with IBLLC-US, and also trade with US ETF's. Moldova should be the same, but you can always ask IBKR first before opening an account.
