Option trading doesn't look like the simplest way to make money. Taxation may not be a problem if you are losing money hand over fist.
I trade futures for a living. I can tell you that I and all other independent traders in Dublin pay income tax at normal income rates. I'm a sole trader, as are most 'locals' - you could incorporate and pay 12.5% corporation tax, but then you'd pay tax on salary drawn down and dividends - this seems to have passed you by?
The other big advantage of a Ltd is you can pay the 12.5% tax and retain the cash within the company to use as cashflow or reinvest in other projects.
where are you getting 33% from? Link please!? Are you referring to taxation of dividends?My understanding, leaving aside whether revenue will see you as a sole trader or a business, is that there is a threshold over which the effecive tax rate is lower in a limited company, ie it becomes 12.5% + 33% of the nett, which is an effective tax rate of about 41% as apposed to the top rate of tax which is about 54% including the USC etc.
So if revenue allowed it you would set up a limited company, pay yourself a salary and once you reach the top rate of tax pay yourself a dividend on the balance.
The other big advantage of a Ltd is you can pay the 12.5% tax and retain the cash within the company to use as cashflow or reinvest in other projects.
In getting into a similar position myself but am thinking the only way to do this effectively with compounding the initial funding correctly is the following.
I am sure other poster's will not think this is ethical etc however many corporations are doing similar to this.
Company in Ireland - Pay myself from this.
Fund a company in an offshore location - How to initially fund it is the hard part?
Company in offshore trades as needed based on IP rights that i sell to this company from Ireland.
Irish company bills company offshore for services rendered i then pay the usual tax on this as income etc etc.
The benefit to this is the offshore company gets the retained earnings to be compounded and i exist as a regular employee of the company in Ireland.
In getting into a similar position myself but am thinking the only way to do this effectively with compounding the initial funding correctly is the following.
I am sure other poster's will not think this is ethical etc however many corporations are doing similar to this.
Company in Ireland - Pay myself from this.
Fund a company in an offshore location - How to initially fund it is the hard part?
Company in offshore trades as needed based on IP rights that i sell to this company from Ireland.
Irish company bills company offshore for services rendered i then pay the usual tax on this as income etc etc.
The benefit to this is the offshore company gets the retained earnings to be compounded and i exist as a regular employee of the company in Ireland.
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