Sars stock question

[Dragonflower]

Hi Could anyone help me with this noob question please.
I want to start trading stocks but i first need to work out a break even percentage that i need to sell the stock for to cover tax ect. So question if i buy a 1 stock for R100 and sell it for R120 and use that money to buy another stock and sell at R200 how will i calculate tax eg

1 stock bought R100 sold at R120
Stock bought R120 and sold R200

so tax will be? on R100 (R20 increase and R80 increase)
or will tax be on bought amount( R100 and R120)
or Sold amounts R320 (Sold R120 and R200)

Rest i can calculate its just the tax part i want to confirm.
Thanks

 

[AchmatK]

Tax will be applied at your marginal tax rate. Net profit on trades will be added to your total other taxable income to determine your marginal tax rate.

 

[The_Ogre]

There's a threshold which you need to cross before you start paying tax. Its something like 20-odd grand

 

[bchip]

Tax is a function of profits, so that means (eg) 20% of profits will go to SARS.
So if you make R1 profit, 20 cents will go to SARS or R100, R20 will go to SARS.
Your tax cannot be more than the profits you make.

As signates pointed out, the actual tax is dependent on the tax bracket you
fall under (whether its 18% or 41%) less the rebate.

If you are going to start trading shares then separate the accounts that you use for investment and trading.
If you mix the 2 accounts both will be seen as trading (so any benefits from long term holding will disappear)

 

[AchmatK]

There's a threshold which you need to cross before you start paying tax. Its something like 20-odd grand

Only applicable to shares not held as trading stock and is now R30k.

From the OP, it's clear that the profits are of a revenue nature and not capital profits.

 

[Thor]

Tax is a function of profits, so that means (eg) 20% of profits will go to SARS.
So if you make R1 profit, 20 cents will go to SARS or R100, R20 will go to SARS.
Your tax cannot be more than the profits you make.

As signates pointed out, the actual tax is dependent on the tax bracket you
fall under (whether its 18% or 41%) less the rebate.

If you are going to start trading shares then separate the accounts that you use for investment and trading.
If you mix the 2 accounts both will be seen as trading (so any benefits from long term holding will disappear)

VERY IMPORTANT ADVICE ^^^

 

[Papsak]

No one answering the question?



Tax will be worked out on the profit - in your case R100.

 

[Arthur]

All the above refers to income tax, of course. VAT is quite different, depending on whether you're VAT registered or not.

 

[Dragonflower]

No one answering the question?



Tax will be worked out on the profit - in your case R100.

Thank you.

Thanks everyone for the good advice as well i appreciate it.