Best setup for trading and investing investing in us stocks and securities with no tax

[Martin Everson]

It does tax personal securities income (dividends and capital gains alike). There is just one exception and that is foreign (i.e. non-Georgian) securities.

Why are you mentioning Georgian securities? The whole thread is about US securities i.e trading foreign securities. My answer was in response to trading foreign securities income obviously....lol.

General consensus among serious lawyers and tax advisors with regards to foreign securities:

• "Professional trading" -> "Professional" -> "income taxation"
• "trading" -> "Professional" -> "income taxation"

"Trading", no matter if private or professional, is considered a business activity if these foreign securities are held for a period of less than five to six months. There is no fixed time frame. RS uses this deliberately.
You are usually considered to be on the safe side after six months.

So active trading in foreign securities with a offshore broker will be taxed your saying when Georgia does not tax foreign sourced income? Your saying they would still consider this offshore income taxable in Georgia due to it being considered a business activity. Is that what your saying? If so it's good to know. Do you have a source to confirm this all....thx?

 

[backpacker]

Why are you mentioning Georgian securities?

Because Georgian securities can be non-Georgian securities and non-Georgian securities can be Georgian securities.
Prominent exAmples: TBC, BoG
Just because a security is exclusively listed at a foreign stock market does not necessarily make a non-Georgian security.
It was a hint that to analyse the tax code carefully.

So active trading in foreign securities with a offshore broker will be taxed your saying when Georgia does not tax foreign sourced income?

Yes, that's what I am saying.

Your saying they would still consider this offshore income taxable in Georgia due to it being considered a business activity.

You have an excellent chance that exactly this will happen.

If so it's good to know.

Indeed, it is!

Do you have a source to confirm this all

Considering your attitude, I suggest to start studying the tax code of Georgia and ask for professional tax advise.
However, you can also just read my post #18 once again and look a bit more careful what it says.

Btw., the Tax Code of Georgia does not explain foreign sourced income. It explains Georgian sourced income.

(Art. 104)

 

[Martin Everson]

Considering your attitude, I suggest to start studying the tax code of Georgia and ask for professional tax advise.
However, you can also just read my post #18 once again and look a bit more careful what it says.

You made claims with no evidence so I am asking for proof not hearsay. Where is your proof? When it comes to tax matters you need to seek professional tax advice. What someone claims on a forum is just a starting point for which direction to go in.

Btw., the Tax Code of Georgia does not explain foreign sourced income. It explains Georgian sourced income.

I already asked OP to speak to BDO and get tax advice if that is route to be followed. That is whole point of tax advice is not to guess or assume anything. You have not given any evidence

Because Georgian securities can be non-Georgian securities and non-Georgian securities can be Georgian securities.
Prominent exAmples: TBC, BoG
Just because a security is exclusively listed at a foreign stock market does not necessarily make a non-Georgian security.
It was a hint that to analyse the tax code carefully.

You gave two LSE listed examples (BGEO and TBCG) which I know very well. Correct me if I am talking about the wrong entities however and provide the correct ones. These are both UK registered holding companies not foreign entities. What makes them Georgian securities please?

Bank of Georgia Group PLC
TBC Bank Group PLC


I repeat please provide evidence to back what you are saying. Otherwise I always say to get professional tax advice as nothing you said has even passed the sniff test.

 

[backpacker]

You made claims with no evidence so I am asking for proof not hearsay. Where is your proof?

Read the tax code. Posts #18 and #22 give plenty of hints where to start your own research.

When it comes to tax matters you need to seek professional tax advice. What someone claims on a forum is just a starting point for which direction to go in.

Exactly. So, follow your own proposal.

Btw., the Tax Code of Georgia does not explain foreign sourced income. It explains Georgian sourced income.

I already asked OP to speak to BDO and get tax advice if that is route to be followed. That is whole point of tax advice is not to guess or assume anything. You have not given any evidence

What evidence are you talking about? It is quite easy to look up the tax code and find out that it only explains Georgian sourced income.

You gave two LSE listed examples (BGEO and TBCG) which I know very well. Correct me if I am talking about the wrong entities however and provide the correct ones. These are both UK registered holding companies not foreign entities. What makes them Georgian securities please?

.... for tax purposes.
Business activities and profits of both are almost exclusively generated in Georgia. Dividends will be considered Georgian sourced income.

I repeat please provide evidence to back what you are saying.

Again, read the tax code.
Key words: Business activity, professional trading, entrepreneurship, place of doing business.

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For all others who might stumble across this thread: Be careful with Georgia! It is a nice country for a retiree who lives from interest or dividends. To this regard the tax code is quite clear.
All other activities have to be approached with great caution. Art. 104.q of the tax code is worth keeping in mind to avoid a bad awakening.