Online poker is becoming more popular by the minute. Every year millions of dollars of prize money are paid out by online poker sites. The poker companies are usually located in tax havens, which means that in most cases the profits won by poker players are taxed in the country of residence (if not double taxed anyway).
The poker player has to declare the profits himself and he is obliged to pay approximately 40% of the profits to the tax authorities, depending on the country of residence.
Losses which occurred in the past cannot be deducted from the player’s taxable amount.
Now poker players get the opportunity to receive tax profits in tax havens such as Seychelles and Switzerland, while protecting the player’s privacy and avoiding taxation!
Online Poker Profits
If a poker player has been successful in an online poker room, he can choose to transfer this money from his poker account.
These profits are always paid to the poker player’s personal account, this is usually the account that the player previously used to open and fund the poker account.
The poker company provides several payment methods for this transfer; it usually involves online payment processors like moneybookers or netteller. In turn these accounts are linked to the local current account of the poker player.
Protect Personal Details
Although poker companies provide the possibility to fund the poker account anonymously, for example by a prepaid card, the poker player is not allowed to receive the profits completely anonymously.
Depending on the amount and regularity of the payments, there is a large risk that the player’s privacy information may fall into the wrong hands. For many players the protection of personal data is as important as the avoidance of taxation. Poker companies take efforts to prevent ‘identity theft’ but the financial institutions themselves remain a risk.
Only half of all consumers trust that financial institutions will protect their data from identity thieves and other potential risks. The amount of abuse that is annually reported which involves private information indicates that this mistrust in financial institutions is not unjustified, and that people who are structurally active on the Internet, and earn money by doing so, should be very careful.
The player is also very limited in his/her planning capabilities in the event a large profit.
Poker profits can be fiscally planned. In addition to the claim of residence in countries such as Ireland, or working under poker “sponsorship agreements” with foreign companies which is done by the professional poker players, there are several options available for the smaller poker player.
Through a foreign company, in conjunction with a bank account in Switzerland for example, poker players can operate anonymously and the profits will be received in a secure environment without a trace of operations in financial institutions or poker companies.
Within this environment, a tax strategy can be created which is suited to the poker player’s requirements; this ensures that the player is not guilty of tax evasion.
Inco Intertrust has developed several solutions specifically tailored for poker players, which allows poker profits to be received abroad without being subject to tax, and without the need for the player to live abroad.
Inco Intertrust is a professional financial service provider and subsequently has hundreds of companies under management worldwide. Due to a large client base Inco Intertrust has good relations with Swiss banks.
This enables clients of Inco Intertrust to open a bank account within 24 hours without visiting the bank. The transaction costs are low, and the minimum balance requirement is
only € 10,000, which can be reached during the first year. This amount is not frozen and the client can access the money at any time.
The poker player will also get access to online banking, and will receive an anonymous debit card, without any name, which can be used at ATMs worldwide. This allows the poker player to access their money at any time of day.
Source by Dennis Vermeulen