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Stock market investors, where you at?
- Thread starter glengoolie
- Start date
In some country , It is very complex way to decide You are taxable or not .
If it is long term or Short term.
Are you an active Trader or Hobby Trader?
Best way to find solution , is hire Tax lawyer.
If it is long term or Short term.
Are you an active Trader or Hobby Trader?
Best way to find solution , is hire Tax lawyer.
User Don, who might chime in with some info here later on, has pointed me out to the estonian limited partnership that could act as umbrella for investments.
https://www.estvca.ee/news/the-new-estonian-liimited-partnership-regime
as i understand it, you can set it up and either be the General Partner with someone acting as Limited Partner where GP could be the manager of the "fund". Or you could be LP and GP would be a hired management firm.
Either way, this LP could then "invest" into A Cyprus or UAE company to trade stocks. The proftis would then be distributed to the parent, this LP, and then they would get distributed to the partners and taxed at their place of residence instead of Estonia.
If i understand it correctly, this allows for the control to be set in estonia but taxation to be set wherever you are located. In other words, if I would take the cyprus-malaysia example from my initial post, the cyprus company would be used to trade stocks. the estonian LP would own this cyprus company. at the end of the year, the profits from the cyprus company would be distributed to the estonian parent company but they wold not be taxed there. instead they would be distributed to me, in malaysia, where they would be taxed as gains on capital with 0% tax. so the LP allows to split the control, that would usually cause the company to be taxed at my place of tax residence, and the taxation of the profits, which can be exempt under CGT.
which is like a hammer for the "control" aspect of international business that causes so much trouble.
i will research this more but i am quite hopeful
https://www.estvca.ee/news/the-new-estonian-liimited-partnership-regime
as i understand it, you can set it up and either be the General Partner with someone acting as Limited Partner where GP could be the manager of the "fund". Or you could be LP and GP would be a hired management firm.
Either way, this LP could then "invest" into A Cyprus or UAE company to trade stocks. The proftis would then be distributed to the parent, this LP, and then they would get distributed to the partners and taxed at their place of residence instead of Estonia.
If i understand it correctly, this allows for the control to be set in estonia but taxation to be set wherever you are located. In other words, if I would take the cyprus-malaysia example from my initial post, the cyprus company would be used to trade stocks. the estonian LP would own this cyprus company. at the end of the year, the profits from the cyprus company would be distributed to the estonian parent company but they wold not be taxed there. instead they would be distributed to me, in malaysia, where they would be taxed as gains on capital with 0% tax. so the LP allows to split the control, that would usually cause the company to be taxed at my place of tax residence, and the taxation of the profits, which can be exempt under CGT.
which is like a hammer for the "control" aspect of international business that causes so much trouble.
i will research this more but i am quite hopeful
as i have said, i need to research this thoroughly but this is what i envision it could look like...
beside the split of control and taxation, it seems this also allows to transform the type of income which decides how it will be taxed. so even if the income from trading would be considered under corporate income tax in cyprus(which is presently disputed), the company would be "taxed" in estonia and in there the profit from cyprus would be distributed via the estonian company for the actual taxation that is deferred to the partners and it becomes investment income which can be tax exempt under CGT.
I hope Don will get in here and give some info so I can stop talking to myself
I hope Don will get in here and give some info so I can stop talking to myself
so my posts are being deleted. so i guess i bid you all good day and admins can go f**k themselves. consider this request for content and account deletion...if you abide by the rules.
Are there any benefits trading your personal assets through company vs. individual? If you have UAE residence visa through freezone company formation (0% corporate/personal taxes) it doesn't matter, right? With company you have to open corporate brokerage account, more paper work, sell assets in your personal brokerage account, transfer assets to corporate brokerage account, you also have to pay professional rates (data fees...etc.). In case you want to change residency or UAE adopts mandatory accounting for companies, things can get much more complicated. I assume it's also much easier to open secondary backup personal bank account abroad vs . corporate bank account.
Am I missing something?
It depends.
A company can always give you a second layer of security as the assets are under the company name.
Especially speaking for Dubai Company it simply makes sense to have everything under the Company as many people having Company in Dubai are travelling around so Proof of Address can be much more difficult.
Like mentioned before Dubai Company with IBKR Company Account is a closed working system as the UAE bank doesn't need a Proof of Address like you know it from EU and IBKR accept the Bank Statement of the local UAE Company Account - even Flexi Desk.
So that said it's only for the case with Dubai Company with IBKR - as you only have more benefits then the other way around with personal account.
I know that most Brokers don't like this and try to force you to use personal accounts like Swissquote and Saxo Bank.
However starting from some point of 2-5m$ the private banks that normally do the custody for you in that case and not some discount broker are fine with both and not really care about - some say it's unnecessary and additional headache to have assets under company/holding some say it's additional layer of privacy etc.
Personal taste if you ask me on this point - personally I would always separate my wealth with an entity. However the other said saying it could makes things more complicated is understandable as well.
In the case of Dubai Company + IBKR it's the simplest and straightforward under company more the personal that's why we recommend it and because there are no additional fees only benefits.
Does IBKR also request proof of address for company's Ultimate Beneficial Owner (bank statement of personal account at UAE bank)?
Yes.
As the personal account statement looks like this when opened together with business account:
JOHN DOE
OWNER
JOHN DOE COMPANY
JOHN DOE COMPANY ADDRESS
It's the smoothest to open Account under Company for UAE with IBKR as they are then accept the PoA. Other way around not for whatever reason.
For those of us who are relatively new to the forum, do the moderators provide an explanation of why they deleted a post -- so that members can learn, if they inadvertently make a mistake? Alternatively, is there some type of warning system that accomplishes that same goal?
Obviously, if you create a thread on how and why to send cash to North Korea, no explanation is necessary, but not everything is so so clear cut.
Cyprus company is probably the easiest for simple trading activities.
0% tax setup with around 4k annual costs.
Glengoolie was banned after complaining that the moderators deleted some of his posts. Obviously, he handled it poorly and cursed at them rather than asking for some type of explanation as to why his posts were deleted.
I asked for a clarification because, if I provide value to the forum, I do not want to spend time posting information only to have it disappear without a reason. A fair process would be to apprise a member of a rule violation so that he can learn from his mistake and take corrective action in the future. That is why I asked my question in post #34 regarding any existing procedure.
Fred, a question regarding this. Does this Dubai Company need to maintain financial records, do accounting and have them audited every year?
Is there a way to bypass company formation, and operate under a personal account? Open a bank account in your own name, then get a Interactive Brokers Account, and move money from your bank account to the Interactive Brokers account? Would this make it easier by skipping the need for accounting etc?
In the way we do the setup - no.
No - the Company Formation grants you the Residence Visa that gives you access to the local UAE Bank Accounts.
Exactly. But take care the above is only valid for the Freezone we work with. Not all Freezones are the same.
I know....there are freezones where you cannot get a simple bank account ...
which freezone is best for financial business ??
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