Publicly traded Wall Street type stocks, bonds, options and commodities can be traded 100% free of both US short term or long term capital gains tax (using a US stock broker located in the USA) because of a long standing "exemption/loophole" that is written into the US tax Code. This "exemption" is very unlikely to be changed because all industrial nations (Canada, UK, Russia, Australia, France) allow non-resident alien banks, companies and trusts (I.e., entities that do not have "working" business offices inside the USA ) to trade stocks listed on their "Bourses/StockExchanges" without being subject to short or long term capital gains taxes.
It is very unlikely that Congress would change this loophole as it would put all publicly traded US companies at a competitive disadvantage - as their stocks could not be purchased by foreigners and traded on a equal/level playing field - excepting if listed on a exchange outside the USA. For example the "London Stock Exchange" - the older sister of the NYSE (founded in 1792).
Comments welcome.
Thomas Azzara
New Providence Estate Planners, Ltd.
Overseas Agent - Anguilla Registrar
(Consultants)
54 Sandyport Drive
P.O. Box CB 11552
NassauBahamas
Fax/phone: (242) 327-7359
E-mail: taxman@batelnet.bs
http://www.bahamasbahamas.com/
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