|
|
| *The Commerce Journal>>>Other Taxes |
Foreign corporation engaged in trading in the US stock market for the benefit of its clients, how is it taxed? |
If an established company in a foreign country and which is fully owned by foreigners, is in the business of trading in the US stock market under its name using money provided to it by its clients, how would such a company be taxed (if it is at all taxed) in the US, considering that foreigners trading in the US stock market are not considered to be conducting business in the US. I couldn't find any decent online tax consultation firms to ask, so yahoo answers was my best bet :) Greatly appreciate your help. As long as company is not registered in the US there are no US tax implications. Only tax implications in the country it is registered in, and the country/ies it's clients are citizens of/living in. They don't need to be registered in the US stock market to trade stocks in US companies. Just like our stock brokers don't need to be registered in other countries to trade stocks of companies outside the US. I do know if you are generating dividend income or capital gains from holding these stocks, you would have to complete form 1042-S which is used to report U.S. generated income by a foreign person. Depending on your country, there may be a mandatory withholding requirement on the income at a stated tax rate. I would read those instructions and it should guide you in the right direction on reporting requirements. Without a great deal of reseach I would guess that the foreign corporation is doing business in the US by purchasing stock on behalf of clients. They also may need a Securities Licinse. |
| Tags |
| Boston Austin Atlanta Other - Business & Finance Other Taxes United States Taxes United Kingdom Taxes Spain Taxes Singapore Taxes Mexico Taxes Ireland Taxes |
| Related information |
You report what you earned in the other country to the IRS, and also to the other country if applicable. You would get a credit from the IRS for any taxes that you had to pay to another coun... Gee, let's see. They've reported their correct income, and are paying their correct income tax.... and what are you asking here?... You are also allowed to deduct the cost of any major improvements to the house while you lived in it. If you paid to have it painted, replaced fences, fixed up a bathroom, hung drapes and s... No loans are not applicable towards taxes. Interest paid on student loans would be deductible on tax return, but there is a limit of $2,500 on it. Schedule D is for capital gains/losses by t... if it's a sole proprietorship you would report any activity for it on your personal 1040 income tax return on a Schedule C. Since you had no activity for it, don't bother with a Sche... Self-employment tax is 15.3% of 92.35% of net self-employment income. If income for 2007 will be $50,000 then SE tax will be 50,000 x 92.35% x 15.3% = 7,065. On top of that will be regular f... what kind of crashes are you asking about? If you are talking about business crashes, the last one that I can remember was the bailout of the savings & loan industry back in the late 1980... |
Commerce Categories--Copyright/IP Policy--Contact Webmaster |