Kubera
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- Aug 25, 2019
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This seems like a pretty complicated subject and eventually, I do plan to pay a KPMG-like tax advisory to get to the bottom of it. However, I thought let's see if anyone here has any experience with something similar, just to get a general idea.
I trade futures online (contracts on different things like commodities etc.) on a couple of exchanges and from next year I'd like to operate it under an LLC rather than as an individual trader. Mostly for any possible tax benefits, but also to separate myself legally from the money made from trading.
A quick search pointed to Dubai free zones, and that seems good as the tax rate is 0%.
So that part is ok, but as I wouldn't be a tax resident of Dubai(I'd be a tax resident of Croatia which has CFC rules), I'm not sure how the taxation would work and if there are any loopholes to use. Also, not sure does it even make sense to incorporate over there if those rules would cancel any possible tax benefits.
To make it a bit more complicated, I wouldn't be actually doing any business in Croatia(as in selling products or services within the country), as those transactions are made online, on the US exchanges.
Did anyone deal with a similar situation? As said, I know it's probably best to pay a local tax advisor to sort it out, but if anyone has any useful info, I'm listening.
@GlobalWealth , saw a couple of your posts, any thoughts on this?
I trade futures online (contracts on different things like commodities etc.) on a couple of exchanges and from next year I'd like to operate it under an LLC rather than as an individual trader. Mostly for any possible tax benefits, but also to separate myself legally from the money made from trading.
A quick search pointed to Dubai free zones, and that seems good as the tax rate is 0%.
So that part is ok, but as I wouldn't be a tax resident of Dubai(I'd be a tax resident of Croatia which has CFC rules), I'm not sure how the taxation would work and if there are any loopholes to use. Also, not sure does it even make sense to incorporate over there if those rules would cancel any possible tax benefits.
To make it a bit more complicated, I wouldn't be actually doing any business in Croatia(as in selling products or services within the country), as those transactions are made online, on the US exchanges.
Did anyone deal with a similar situation? As said, I know it's probably best to pay a local tax advisor to sort it out, but if anyone has any useful info, I'm listening.
@GlobalWealth , saw a couple of your posts, any thoughts on this?
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