taxes for foreigners - DailyFX Forex Forum

smonsalve · #1 (**permalink**) 03-02-2007, 10:11 PM

I'm new on this, if I'm a foreigner do I have to file taxes (in this case a loss) in the United States or in my country of origin?

GreenTrader Tax · #2 (**permalink**) 03-03-2007, 08:31 AM

When non-resident aliens of the US trade forex with a US-based broker, they don't trigger US taxes on their forex trading gains or interest income. So US tax returns (Form 1040NR) do not need to be filed.

We can't advise you on taxes on your home country and it varies by country.

vicebet · #3 (**permalink**) 03-10-2008, 11:51 AM

Malaysia Income Tax law on online Forex Trading? Anyone?
I understood that Income Remitted from Outside Malaysia
With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by resident individual is exempted from tax.

Anyone from Malaysia to clarify tax issue? Thank You.

logoodung · #4 (**permalink**) 09-11-2008, 03:58 AM

If a loss is made in the FX account does this need to be filed with US or local country government inland revenue?

GreenTrader Tax · #5 (**permalink**) 12-24-2008, 08:23 AM

Not in the US, if the loss was incurred by a non-resident alien (not in the US for more than 183 days).

daytraitor · #6 (**permalink**) 04-27-2009, 07:13 AM

hi, i wanted to start a new thread for this but guess i am not allowed to yet. at any rate i would greatly appreciate any help anyone can offer. i'm a US citizen living in japan.

taxes are very favorable here for independent businesses, and it would be FANTASTIC if i could file my forex activities income in japan rather than in the states.

how much "in japan" do i have to keep it to make this happen?

if i fund a US broker site, say thinkorswim, with my US bank, but live and work in japan otherwise, can that be enough? what if i fund thinkorswim with my japanese bank? or is that even possible? i would be willing to look into funding a japanese broker with my japanese bank account if it came down to it, but obviously the written language is really difficult, so an english site would be preferable if possible.

anyone with any insight or experience whatsoever please drop a line! i am papertrading now but definitely plan to go live, and want to set it all up right the first time.

thanks! yoroshiku...

kordistos · #7 (**permalink**) 07-03-2009, 12:23 PM

good day,

I OPENED MY MICRO ACCOUNT WITH FCXM USA LAST MAY 2009.DUE TO THE NEW NFA RULES I MIGHT TRANSFER SAID ACCOUNT TO FXCM UK.IN ANY CASE,AS I'AM NOT A USA OR UK CITIZEN DO I HAVE TO PAY TAXES IN USA OR UK FOR MY POSSIBLE PROFITS???IF THE ANSWER IS 'YES' AND I DECIDE TO TRANSFER MY ACCOUNT TO FXCM UK,DO I HAVE TO PAY TAXES IN UK???.

ANY OPINION/INFORMATION WOULD BE VERY HELPFUL

THANK YOU IN ADVANCE

REGARDS

MANTHOS

kordistos · #8 (**permalink**) 07-03-2009, 12:54 PM

GOOD DAY ,

I'AM LOOKING FOR HELP FOR FOLLOWING ISSUE:

I OPENED MY MICRO ACCOUNT WITH FXCM USA LAST MAY.NOW DUE TO NFA RULES I WILL PROBABLY TRANSFER SAID ACCOUNT TO FXCM UK.IN ANY CASE,DO I HAVE TO PAY TAXES FOR POSSIBLE PROFITS IN USA OR UK AS I'AM NOT A USD OR UK CITIZEN/REZIDENT.IF THE ANSWER IS "YES" AND I FINALLY DECIDE TO TRANSFER MY ACCOUNT TO FXCM UK,DO I HAVE TO PAY TAXES IN UK OR IN USA WHERE FIRSTLY OPEN MY ACCOUNT.

ANY IDEAS/OPINIONS/INFORMATIONS WILL BE HELFUL

THANK YOU IN ADVANCE

MANTHOS

neolla · #9 (**permalink**) 07-05-2009, 06:57 PM

do i have to pay taxes to UK?

GreenTrader Tax · #10 (**permalink**) 07-08-2009, 09:58 AM

I asked FXCM to call me to discuss these accounts and I will then look into UK tax questions.

nosser1012 · #11 (**permalink**) 07-12-2009, 10:48 AM

hi all
My concern is about taxes. I know i have to pay US taxes since i'm a US citizen, but will i also be required to pay UK taxes? If i do it kind of makes trading there not practical. I'm really freaked out about it because i need to trade a micro account and i'm really dependent on met4. I'm concerned i could loose my ability to make a successful living becasuse of this. Any help would be extremely appreciative.
thank you.

xiaoming1970 · #12 (**permalink**) 09-29-2009, 11:13 AM

Hi,
Currently I have a FXCM US account but I am planning to transfer it to a FXCM UK account to get Hedging option. When I report the gain/loss to IRS, do I need to report it to the tax department of UK too? Thanks for your advice.

GreenTrader Tax · #13 (**permalink**) 03-09-2010, 08:45 AM

To date, we don't have a formal answer on UK taxes for Americans not living in the UK.

We believe that non residents of the UK (like Americans living in America) are not subject to local UK taxes on their UK forex trading gains. There might be UK tax withholding on interest only - and dividends if on stocks too - but many forex traders in the UK don't earn interest on their forex accounts in the UK.

It's a similar tax rule in the US for UK or other non resident aliens of the US, with US-based trading accounts. Non resident aliens don't pay US taxes on US trading capital gains. See TRADER TYPES: NON-RESIDENT.

Generally, countries don't tax capital gains activities by non resident aliens unless the non resident alien spends considerable time in the country - it's 183 days in the US.

Americans do need to file a US foreign bank account FBA form reporting their UK and other foreign accounts - including the FXCM UK platform account in our view. TDF 90.22-1. There are very large penalties if you omit filing this form when required. Learn more at Report of Foreign Bank and Financial Accounts (FBAR).