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V0553-18 27 February 2018 · SG de Tributos Criterion in force
OTRO · modelo 720

Futures contracts not declared in Form 720, but brokerage cash account is

A taxpayer asks how to report a brokerage account in a US futures broker. The DGT responds that futures are not subject to declaration, but the associated cash account must be reported via Form 720.

The question raised

Question posed: Which section of Form 720 should be used to declare a "brokerage" account opened at a non-banking institution (broker) abroad.

The DGT's ruling

Futures contracts are derivative financial instruments and are not subject to the reporting obligation of Form 720. However, the cash instrumental account opened at the broker to carry out such operations must be declared under the section for current, savings, or cash deposit accounts. In such case, key "C" and subkey "5" (other accounts) must be used.

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