i want to go to dubai and live there and do day trading from there. i have an account in tdameritrade and zecco and currently living and trading from america. in dubai the income tax is very low. so where do i pay the tax if i day trade in dubai. in america or dubai.
As far as taxes, you will owe capital gains taxes in America if you are trading on an American stock exchange such as the Dow Jones or NASDAQ. It does not matter where you are located, you can invest from the North Pole…the IRS doesn't care. If you are investing from an American stock exchange, you owe taxes in America.
The opposite is also true. If you live in America and invest in foreign stocks, you will owe taxes in those countries. It is credited from your American tax liability since you already paid taxes on that gain. That is called a "foreign tax credit". It is common for overseas mutual funds to report "foreign taxes paid" on a yearly basis for this purpose.
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