CRS on Broker platforms Degiro or interactivebrokers

[Btraveler]

Hello mates,

Do you know if brokers like Degiro or interactive are sharing your personal data within the CRS? If yes, do you know some brokers that don't do that? Many thanks in advance

 

[Martin Everson]

Degiro does share under CRS as they clearly state. IB will also. Any broker that doesn't now will do later. I posted here two brokers here you can use but it will not last long as those countries will join CRS at some point.

FAQ on Taxes | Degiro online broker

--- quote start

"To help fight tax evasion and to protect the integrity of tax systems, governments around the world introduced a system for automatic exchange of information on financial accounts between countries. This system is known as CRS and is incorporated in Dutch law.

As a result, DEGIRO is obliged to verify in which country a client is (potentially) a tax resident. DEGIRO is obliged to share this information with the Dutch tax authorities. Subsequently, the Dutch tax authorities share this information with the tax authorities in the country where the relevant client (potentially) is a tax resident."

---- quote end

 

[Btraveler]

Degiro does share under CRS as they clearly state. IB will also. Any broker that doesn't now will do later. I posted here two brokers here you can use but it will not last long as those countries will join CRS at some point.

FAQ on Taxes | Degiro online broker

--- quote start

"To help fight tax evasion and to protect the integrity of tax systems, governments around the world introduced a system for automatic exchange of information on financial accounts between countries. This system is known as CRS and is incorporated in Dutch law.

As a result, DEGIRO is obliged to verify in which country a client is (potentially) a tax resident. DEGIRO is obliged to share this information with the Dutch tax authorities. Subsequently, the Dutch tax authorities share this information with the tax authorities in the country where the relevant client (potentially) is a tax resident."

---- quote end

Hello thgere @Martin Everson Many thanks for your response. I'm gonna look at the link of your post

 

[micand]

IB is doing it already, too.

 

[Btraveler]

IB is doing it already, too.

Thank you for your answer @micand Any experience with Caucasus Capital (Georgia) or Ameribank broker services?

 

[lbh411]

all the reputable ones report pretty much so you pay a pound of flesh either way in witholding tax (when u go to a preffered jurisdiction plus moving costs) or just capital gains in any non banana republic

possibly look into IB singapore/asia

 

[JustAnotherNomad]

If you could get an account with IB Hong Kong, would that make any difference?

 

[lbh411]

If you could get an account with IB Hong Kong, would that make any difference?

then you take the heat on witholding tax anyway no way around it really
only way would maybe trade on bitcoin derivative platforms (counter party risk of losing your funds probably witholding tax anyway) and then find a way to get your funds out without triggering aml lool basically forget it, 2nd scenario you pay in premium and lack of complex products anyway if anyone can think of something good please share.

 

[JustAnotherNomad]

Does HK have withholding tax? Or do you mean US withholding tax when you own US stocks?

 

[lbh411]

Does HK have withholding tax? Or do you mean US withholding tax when you own US stocks?

yepp im pretty sure any profit u derive from us based investment or dividend will get a haircut

for hk i googled quick:
Tax Treaty
There is not a treaty on taxes between Hong Kong and the United States. There is a US - China tax treaty, but it is not applicable to Hong Kong.

so thats a 30% haircut straight. im not sure if ib hk or ib sg has some type of setup to make it cheaper but if they did would likely be 15% hope i helped

 

[JustAnotherNomad]

So we are only talking US stocks here.
There is no withholding tax on the sale of US stocks, even if there is no tax treaty. There is only withholding tax on dividends.
But isn’t that ALWAYS the case, no matter where your broker is located? That only depends on your personal tax residency, right?
And for ETFs, it depends on where they are domiciled. And you should be able to buy Ireland-domiciled ETFs through IB HK? For Ireland-domiciled ETFs, there is only a 15% withholding tax.

 

[lbh411]

So we are only talking US stocks here.
There is no withholding tax on the sale of US stocks, even if there is no tax treaty. There is only withholding tax on dividends.
But isn’t that ALWAYS the case, no matter where your broker is located? That only depends on your personal tax residency, right?
And for ETFs, it depends on where they are domiciled. And you should be able to buy Ireland-domiciled ETFs through IB HK? For Ireland-domiciled ETFs, there is only a 15% withholding tax.

i hadto go reread the rules as it had been a year since i looked into this, for some reason i assumed that all trades were taxed in usa (i was american at one point) but its just dividends.
So if ive looked everything up correctly your main worry is dividend tax and capital gains tax in your residency, which likely still matters as im assuming you guys will dump a chunk of cash into stocks and just draw dividends rather than mess around day trading.

i believe main benefits of having the IB account localised in hk sg is for access to their local stockmarkets when i signed up for IB they had special procedures for that.

so in short you have 2 criteria

Low capital gains tax: (USA will not tax it under W8-BEN) and source
dividendtaxes so theres a way around thnx for makin me double check!

 

[Btraveler]

Hello Guys,

If you're EU citizen and have some money in Georgia, Armenia or similar and you choose Caucausus Capital or Ameribank, will they report anything to your home EU country?

 

[lbh411]

Hello Guys,

If you're EU citizen and have some money in Georgia, Armenia or similar and you choose Caucausus Capital or Ameribank, will they report anything to your home EU country?

not currently but i believe georgia will implement crs soon

 

[Educate]

US based brokers seem not to report. Maybe matter of time.

 

[lbh411]

US based brokers seem not to report. Maybe matter of time.

IB has different branches for eg im with IB UK and they report and i know switzerlands one does
you might be right about the US domiciled one but i dont know if it can circumvented because ib picks which one to sign you up for based on your jurisdiction(at least in my case)

 

[Educate]

IB has different branches for eg im with IB UK and they report and i know switzerlands one does
you might be right about the US domiciled one but i dont know if it can circumvented because ib picks which one to sign you up for based on your jurisdiction(at least in my case)

I mean other US based brokers NOT IB.

 

[lbh411]

I mean other US based brokers NOT IB.

i think would depend on if you fill out W8-BEN so you would lose out in someway if you fill out the W8-BEN i believe IRS will be the ones reporting it in the end so broker wouldnt necessarily matter once you prove your jurisdiction then thats how it would go during sign up

 

[JohnLocke]

i believe IRS will be the ones reporting it in the end so broker

To which country do you believe the IRS will report it?

 

[lbh411]

To which country do you believe the IRS will report it?

UK specifically which is relevant personally im pretty sure the aggressive tax offices like germany also(heard this within crypto circles not my experience) mainly happens i believe when 1099s are produced and i presume thats what tax offices get a breakdown of to chase you with