For the forex fundies

[SEF]

Is Forex trading taxable ? And if so, how ?

I'm going into forex trading soon, so i'd like to know beforehand wether i'll be taxed on my earnings.
If it is, how much tax is applied, and what needs to be done for the necessary to be put into place ?

thanks a stack
SEF

 

[Polygon]

Hello,

I have a friend who trades Forex and he mentioned that it is taxed. Check out something called Capital Gains Tax.

I think it's 10%? Not sure but check it out.

Cheers

 

[Mars]

Hello,

I have a friend who trades Forex and he mentioned that it is taxed. Check out something called Capital Gains Tax.

I think it's 10%? Not sure but check it out.

Cheers

You get taxed on your earnings when you draw the money out. Its not Capital Gains tax, you become a Provisional tax payer and you have to declare your earnings.
Capital gains tax is when you sell a property or other asset at a profit.

 

[Polygon]

Looked in to this some more, you may well be right. SARS says this:

Any income received from investments (including local interest, foreign interest and foreign dividends) must be declared, in the Investment income section of the ITR12 return.
Withholding tax on foreign interest and foreign dividends must also be declared. The amounts received in respect of local interest, foreign interest and foreign dividends must be entered in the provided fields. For persons married in community of property, the full investment income received must be entered and SARS will do the apportionment. If the person is married out of community of property or is unmarried, the own investment income must be declared.

So I guess it's part of your income and taxed at the rates for income? Damn!

 

[SEF]

thanks guys

 

[undesign]

Trading income = normal revenue = taxable income. The test is "speculation" or "profit-driven" vs. "investment". Selling a house could also be normal income tax if the motive was speculation or turning a quick profit.

Here's a very basic summary -

http://www.ghostdigest.co.za/code/A_927.html

 

[Mars]

Trading income = normal revenue = taxable income. The test is "speculation" or "profit-driven" vs. "investment". Selling a house could also be normal income tax if the motive was speculation or turning a quick profit.

Here's a very basic summary -

http://www.ghostdigest.co.za/code/A_927.html

!! Thats interesting.

 

[Freaksta]

There is a lot of case law that will protect you in the case of making a profit on a house (if you are not a property developer or something similar). Unless im mis-informed which may be the case

 

[duderoo]

Is Forex trading taxable ? And if so, how ?

I'm going into forex trading soon, so i'd like to know beforehand wether i'll be taxed on my earnings.
If it is, how much tax is applied, and what needs to be done for the necessary to be put into place ?

thanks a stack
SEF

Did you eventually start trading?

 

[ice_cubes]

You are either taxed on the capital gain (after deduction the annual exemption) or the profit is added to your taxable income & taxed at your tax bracket (rate).

If the intention of the forex was to invest, and you sold because you investment was at risk = capital.
If the intention was to trade in forex to gain a profit = taxable income.