Tax Living in Ireland working online Paid in $$$

Hedge777

Hope someone may be able to give some advise,

If I live in Ireland and will hopefully soon begin working as an (independent contractor) on-line for an USA based company, how will I handle the taxation, will I get taxed twice?

To be more precise, the company is a CTA (commodity trading adviser) trading futures and options. After a long struggle I have qualified to trade with them and will open a futures account to trade some of my own money and whatever clients the company puts under me. The way the company policy is structured, any money at the end of the month above a high water mark less fees and commissions, 50% of profits go to the company and 50% to the client.
Of that 50% the company takes in, the traders(employees) get 50% of the clients they trade for and 70% of their own account profits as payment.

So if I will receive a cheque as monthly payment from the USA and also have an account based in USA making a return how will I be taxed of where?

They have mentioned that they would prefer to pay into a company and I should set up a company in the state of Delaware, where most USA based company's are because the company taxes in Delaware 9% not even 12.5% like tax haven Ireland.

I know that if I have money invested in anything here at home or sitting in a bank on any interest I will pay 40% capital gains, but if I have to set up a company be it in Delaware or an Irish based company will this then be company assets and taxed as a company?

So any advise would be helpful, Thank you.

Hedge777

I guess nobody read's these things

Hedge777

Hedge777 wrote: »

I guess nobody read's these things

Or, I guess nobody wishes to offer an opinion on such a complex situation. Your best bet is to talk to an accountant.

dennyk

You are well into "hire an accountant" territory with that situation, my friend. Actually, it's more like "hire multiple accountants and lawyers," as you're going to have to deal with the legal issues of incorporating in the US vs. Ireland, financial regulations and compliance matters in the US, and complex tax issues in both countries, and it's very unlikely you'd be able to find a single accountant or lawyer who is sufficiently familiar with both jurisdictions. This is not something random people from the Internet can assist you with; you're talking about an enormously complex undertaking with very serious potential legal consequences if you don't do things exactly right (and Ireland does have an extradition agreement with the US, so don't think that international borders alone are going to keep you from spending some quality time in a US federal penitentiary if you screw something up badly enough...).

mkdon05

As you are irish domiciled and resident, you are liable to Irish tax on your worldwide income and gains.
So it if you are paid by the company as an employee you will be liable to irish tax and likely USA taxes. You will get a credit for USA tax paid against your Irish liability.

If you set up an American company, any payment from that company to yourself would be treated in the same way as above.

Any capital gains you make worldwide are liable to 33% CGT but may qualify for certain reliefs.

You will need advice in Ireland for Self assessment income tax and would need advice in the USA if you are setting up a company there.

L.Jenkins

I'll pm you the contact information of an Accountant in Roscommon who deals with US taxation also.

heretothere

I also know a firm in Dublin that deal with US taxes. PM me if you want their details. They're pretty pricey tho.

Hedge777

L.Jenkins wrote: »

I'll pm you the contact information of an Accountant in Roscommon who deals with US taxation also.

Thank you, but I got advise from a local tax adviser whom deals with online trading and international trade. They were able to point me in the right direction for now, until I see how this goes.