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How do Intеrаctivе Brоkеrs Europе do the CRS reporting?

#23
Dreamy said:
Yes but this is not a problem. US doesn't share info about bank accounts holders, brokers accounts holders and so on to thirds countries via CRS
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If the account falls under FATCA it is shared with other countries and has been shared for years. FATCA is a bilateral sharing agreement and information flows both ways like CRS. See my links below for more information.

www.offshorecorptalk.com

Do I understand that US financial institutions DO NOT report non-us person deposits in them?

US is the only country that has not signed CRS (common reporting standard) agreement. They collect info via FACTA, but they do not have a responsibility to share info on non-US person deposits in their financial institutions with the respective tax authorities of the non-US person country. Do I...
www.offshorecorptalk.com www.offshorecorptalk.com



www.wsj.com

IRS Begins Sending Individual Account Information to Foreign Countries

The Internal Revenue Service has kicked off a new program under which it shares large amounts of individuals’ financial-account information with certain foreign countries, the agency said Friday.
www.wsj.com www.wsj.com

Martin Everson said:
----quote
Updated Oct. 2, 2015 10:27 p.m. ET

"The Internal Revenue Service has kicked off a new program under which it shares large amounts of individuals’ financial-account information with certain foreign countries, the agency said Friday.

The IRS said it received digital information about U.S. taxpayers’ foreign accounts from governments and firms around the world, and it sent information on foreigners’ U.S. accounts to government authorities in as many as 34 countries. While governments have exchanged such information in the past, the sharing wasn’t automatic and the scope was often far narrower. The deadline for the exchange to begin was Sept. 30.

According to the IRS, it will only share information with foreign countries which meet its “stringent safeguard, privacy, and technical standards,” and it has the ability to halt transmissions if it believes the standards aren’t being met.

The IRS declined to say which countries received information from the U.S. This week, the agency added 16 new countries, including Brazil, South Africa and India, to the list of those already eligible to receive financial-account details.

The information exchanged typically includes the name, address, tax identification number, account number, account balance, and dividend and interest payments, among other things. This disclosure applies to accounts above a certain threshold."

Countries eligible to receive information from the IRS about their taxpayers’ U.S. accounts:

  • Australia
  • Brazil
  • Canada
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Gibraltar
  • Guernsey
  • Hungary
  • Iceland
  • India
  • Ireland
  • Isle of Man
  • Italy
  • Jersey
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malta
  • Mauritius
  • Mexico
  • Netherlands
  • New Zealand
  • Norway
  • Poland
  • Slovenia
  • South Africa
  • Spain
  • Sweden
  • United Kingdom
--- end quote
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#24
Martin Everson said:
If the account falls under FATCA it is shared with other countries and has been shared for years. FATCA is a bilateral sharing agreement and information flows both ways like CRS. See my links below for more information.

www.offshorecorptalk.com

Do I understand that US financial institutions DO NOT report non-us person deposits in them?

US is the only country that has not signed CRS (common reporting standard) agreement. They collect info via FACTA, but they do not have a responsibility to share info on non-US person deposits in their financial institutions with the respective tax authorities of the non-US person country. Do I...
www.offshorecorptalk.com www.offshorecorptalk.com



www.wsj.com

IRS Begins Sending Individual Account Information to Foreign Countries

The Internal Revenue Service has kicked off a new program under which it shares large amounts of individuals’ financial-account information with certain foreign countries, the agency said Friday.
www.wsj.com www.wsj.com
Click to expand...
Death.
 
#26
daxbr said:
Not yet. The next step is a centralized database with unrestricted access by all taxing authorities. All current transactions should be looked at as if it was the case today.
Click to expand...

You are 100% right his will happen in EU. Imagine an EU wide version of AUSTRAC and then start to cry.

Get out of the EU while you still can damn_(
 
#27
According to Common Reporting Standard (CRS) | IB Knowledge Base, "For accounts held by Interactive Brokers LLC, there is no reporting since the United Sates has not signed the CRS."

If a non resident opens an IBKR account with IBKR US using a US LLC (DE, WY, NV), then surely the entity won't be liable for taxes (besides 30% withhoding tax on dividend income)? If the US LLC already have their EIN, then opening an US account shouldn't be an issue.

FATCA applies when reporting is needed for a US citizen or green card holder. In this case, the while the LLC is a US entity, the members of the LLC are not US residents.
 
#28
conxentra said:
According to Common Reporting Standard (CRS) | IB Knowledge Base, "For accounts held by Interactive Brokers LLC, there is no reporting since the United Sates has not signed the CRS."

If a non resident opens an IBKR account with IBKR US using a US LLC (DE, WY, NV), then surely the entity won't be liable for taxes (besides 30% withhoding tax on dividend income)? If the US LLC already have their EIN, then opening an US account shouldn't be an issue.

FATCA applies when reporting is needed for a US citizen or green card holder. In this case, the while the LLC is a US entity, the members of the LLC are not US residents.
Click to expand...
In fact of the matter. Therefore, how to open an account in the USA office? As far as I know, for Europe and ex-USSR countries, do they open accounts outside the US office (in Europe or Ireland)?
 
#29
Dreamy said:
In fact of the matter. Therefore, how to open an account in the USA office? As far as I know, for Europe and ex-USSR countries, do they open accounts outside the US office (in Europe or Ireland)?
Click to expand...
Being resident in UAE should get you an account with IB LLC located in Pickwick plaza in Connecticut, USA.

It is actually a smart move on their part as they might get lots of love from the eu.
 
#30
Dreamy said:
In fact of the matter. Therefore, how to open an account in the USA office? As far as I know, for Europe and ex-USSR countries, do they open accounts outside the US office (in Europe or Ireland)?
Click to expand...

IB has EU entities where they channel EU clients. If you go to US entity as EU resident they will force you to open with an EU entity. Sadly its the way they have divided up their global business to comply with local regulations i.e EU regulation on offering of financial services etc. If your from countries outside EU i.e a country with no clout like Georgia then you could be sent to US entity and likewise if your from HK then you could be sent to the HK entity and so forth. If you just go to IB site they should redirect you do correct entity base on your residency.
 
#31
Dreamy said:
In fact of the matter. Therefore, how to open an account in the USA office? As far as I know, for Europe and ex-USSR countries, do they open accounts outside the US office (in Europe or Ireland)?
Click to expand...
If you are using a US LLC, then the account will be opened through IBKR US office. If you are a non US resident in that US LLC, then besides a 30% withholding tax (as declared on your W8-BEN) on dividends, all capital gains (short term and long term, as well as crypto) are not subject to tax (though form 5472 should be filed annually).

To date, the US is non CRS compliant so the IRS does not share that information with your country of residence. For non US residents, the US is still cost effective, as the setup costs are far cheaper than many other alternatives.
 
#32
conxentra said:
If you are using a US LLC, then the account will be opened through IBKR US office. If you are a non US resident in that US LLC, then besides a 30% withholding tax (as declared on your W8-BEN) on dividends, all capital gains (short term and long term, as well as crypto) are not subject to tax (though form 5472 should be filed annually).

To date, the US is non CRS compliant so the IRS does not share that information with your country of residence. For non US residents, the US is still cost effective, as the setup costs are far cheaper than many other alternatives.
Click to expand...
Why the hell do they want form 5472? It looks like a trap, to send (someday) information to your country of residence...
 
#33
Martin Everson said:
IB has EU entities where they channel EU clients. If you go to US entity as EU resident they will force you to open with an EU entity. Sadly its the way they have divided up their global business to comply with local regulations i.e EU regulation on offering of financial services etc. If your from countries outside EU i.e a country with no clout like Georgia then you could be sent to US entity and likewise if your from HK then you could be sent to the HK entity and so forth. If you just go to IB site they should redirect you do correct entity base on your residency.
Click to expand...
What if you are an EU citizen and Mexican permanent resident?
 
#34
zzzzzz said:
Why the hell do they want form 5472? It looks like a trap, to send (someday) information to your country of residence...
Click to expand...

People spend their lifetimes trying to escape the US tax system. Yet people want to walk straight into it like Lemmings I guess...lol. I would avoid the US financial system period. I don't even own any USD or any US stocks etc.

daxbr said:
What if you are an EU citizen and Mexican permanent resident?
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IB will use the address you use to open the brokerage account in order to direct you to the correct entity. If you use EU address then they send you to EU entity. If you use Mexican then.....I don't know where they will send you but I guess maybe US entity :confused:.
 
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#35
Martin Everson said:
IB has EU entities where they channel EU clients. If you go to US entity as EU resident they will force you to open with an EU entity. Sadly its the way they have divided up their global business to comply with local regulations i.e EU regulation on offering of financial services etc. If your from countries outside EU i.e a country with no clout like Georgia then you could be sent to US entity and likewise if your from HK then you could be sent to the HK entity and so forth. If you just go to IB site they should redirect you do correct entity base on your residency.
Click to expand...
Understood. So if for example I am Moldova resident, I can not open IB account exactly in US right? Personal account I mean
 
#36
Dreamy said:
Understood. So if for example I am Moldova resident, I can not open IB account exactly in US right? Personal account I mean
Click to expand...

You can try to open a demo account to see what happens. I don't know for every country to which IB entity they will channel you.
 
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