offshore company for investing in crypto/stock market
- Thread starter hmg78800
- Start date
- Status
This is not correct.
What you are quoting is the instruction for private persons. They need to declare and pay tax on every sale or swap if profitable. Losses are not deductible.
For companies you can just mark your positions (crypto or other traded and liquid papers) to market at the end of your accounting period and show the difference as profit or loss in income statement and balance sheet. No taxes are paid︀ on that.
As you mentioned - profit of a company gets taxed only when taking︁ it out (usually as dividends). No detailed reporting necessary.
H.
What you are quoting is the instruction for private persons. They need to declare and pay tax on every sale or swap if profitable. Losses are not deductible.
For companies you can just mark your positions (crypto or other traded and liquid papers) to market at the end of your accounting period and show the difference as profit or loss in income statement and balance sheet. No taxes are paid︀ on that.
As you mentioned - profit of a company gets taxed only when taking︁ it out (usually as dividends). No detailed reporting necessary.
H.
Im completely new to all of this and learning. Found out about tax advantages in Estonia after making this post.
However, I found some information that that a PE is not taxed on any foreign sourced income in Estonia while an Estonian company is only taxed on undistributed profits. Im not sure if US LLC is a way to trade completely tax free, regardless of whether the profits are distributed or not. This is what I'm trying to find out.
There might be some advantages in terms of geographical / counter party diversification as well.
Also, is it really possible to hold crypto through a US LLC? Been reading about Bermuda︀ lately.
However, I found some information that that a PE is not taxed on any foreign sourced income in Estonia while an Estonian company is only taxed on undistributed profits. Im not sure if US LLC is a way to trade completely tax free, regardless of whether the profits are distributed or not. This is what I'm trying to find out.
There might be some advantages in terms of geographical / counter party diversification as well.
Also, is it really possible to hold crypto through a US LLC? Been reading about Bermuda︀ lately.
It could be tax-free in some instances.
You need to consider your personal tax residence, the company's tax residency, the︀ company's PEs (e.g., where the trading is happening), and potential tax exemptions (whether the income︁ is exempt from tax on a personal/corporate level).
Why would it not be? Basically any natural person or legal entity can hold crypto.︅
You need to consider your personal tax residence, the company's tax residency, the︀ company's PEs (e.g., where the trading is happening), and potential tax exemptions (whether the income︁ is exempt from tax on a personal/corporate level).
Why would it not be? Basically any natural person or legal entity can hold crypto.︅
- Status