Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Anybody not US citizen trading in US futures exchanges from foreign institution did you know that it seems you have to register your business with IRS and do annual reports (even they are NIL) for them ?
I do not mean official financial institutions they of course have to do this but I mean other proprietary trading from any kind of business/investing entity (small or big).
I started to learn this recently when I was filling up the latest W-8BEN-E form and there was that Chapter 4 Status (FATCA status) question.
Can you help answer these questions from other members on NexusFi?
I'm not a tax adviser so my views may not be correct - however to the best of my understanding, this is required whether you are a US or non-US person who is trading through an offshore entity. It is a straightforward process. You create an account on IRS's page for FFIs, you answer a 1.5 page questionaire and you should generally get same-day approval and a FATCA ID. The periodic certification takes a lot more work.
This is exactly what I did. Obtaining GIIN code was easy job and what I have learnt the annual report is not very complicated if you do not have major US owners in the company or distribution for any US citizens (=NIL report, just your identification information).
I agree with what is posted here. As a US citizen living abroad, I've had to deal with this for a couple years now. The paperwork is rather simple. The bigger problem is finding banks willing to do business with a US citizen now in the post-FATCA world. I'm sure it varies depending on what type of activity you are bringing.
Correct, although there is an annual exemption which you need to exceed before you need to pay taxes. Your tax return must however still be submitted annually.
Edit: Double-tax treaties may also come into play, but I never looked at those. In a tax haven (like Dubai) there would not be any and the normal exemption should apply.
I've been doing a lot of research on offshore banking and asset protection.
I am presently looking at several options, one such option is the combination of a Nevis LLC that holds the assets, and a Cook Island Trust which holds the LLC.
These …
I believe I went into some detail. I'm not an accountant nor an attorney.
Back to the topic I say that annual FATCA report (in my case a NIL form 8966) must be given in electronic format (XML file). Fortunately here in Finland our local tax authority will give the example of this file (helps a lot to create it) for free and you can send this file manually through them thanks to IGA agreement between the countries. IRS registration for GIIN ID still needed.
