Tax on overseas investment
Hey guys, so Ive never posted in this section before and wasn't sure if this is exactly where this goes but here I am.
So Im an investor with lets say X. X lives in another country. I gave him lets say 10K for investment. By the end of the year, hes made 100% profits. Now my total is 20K. He has a 25% cut so 2500 goes to him. Now he says he pays tax on the entire profit in his country, as in he shows a 10k profit and pays tax on it. How does this work? When he sends me 7500 of my profits, I have to pay another tax on it? If yes, how is that tax determined?
So Im an investor with lets say X. X lives in another country. I gave him lets say 10K for investment. By the end of the year, hes made 100% profits. Now my total is 20K. He has a 25% cut so 2500 goes to him. Now he says he pays tax on the entire profit in his country, as in he shows a 10k profit and pays tax on it. How does this work? When he sends me 7500 of my profits, I have to pay another tax on it? If yes, how is that tax determined?