Really bad news for all german forex traders:
The german left wing government -yes unfortunately nearly all german parties are leftist nowadays- has passed a law which will change the way how wins and losses resulting from trading derivatives (which includes forex) are treated by taxation. At the moment it is common at the end of the year to offset wins and losses in order to pay a 25% tax on the wins or zero tax when the losses were larger than the wins.
After the law will be introduced it will only be possible to offset max 10.000 EUR of losses.
german source: https://www.welt.de/finanzen/article...er-Sparer.html
Example:
Until now
A trader has earned 1.200.000 EUR in a year of trading and accumulated 1.000.000 EUR of losses.
That means he has to pay (1.200.000-1.000.000)*0.25=50.000 EUR tax
His income will be 200.000-50.000=150.000 EUR
2021 (same numbers)
Tax to pay (1.200.000-10.000)*0.25=297.500 EUR
Income 200.000-297.500=-97.500 EUR
A more realistic example:
Wins 25.000 EUR/Losses 15.000 EUR
Now
(25.000-15.000)*0.25=2500 EUR
Income 10.000-2.500=7.500 EUR
2021
(25.000-10.000)*0.25=3750 EUR
Income 10.000-3750=6250 EUR
Another goodie of the new law will be that a german trader has to pay tax for every win instantly and can get the money back at the end of the year via his annual tax declaration.
The german left wing government -yes unfortunately nearly all german parties are leftist nowadays- has passed a law which will change the way how wins and losses resulting from trading derivatives (which includes forex) are treated by taxation. At the moment it is common at the end of the year to offset wins and losses in order to pay a 25% tax on the wins or zero tax when the losses were larger than the wins.
After the law will be introduced it will only be possible to offset max 10.000 EUR of losses.
german source: https://www.welt.de/finanzen/article...er-Sparer.html
Example:
Until now
A trader has earned 1.200.000 EUR in a year of trading and accumulated 1.000.000 EUR of losses.
That means he has to pay (1.200.000-1.000.000)*0.25=50.000 EUR tax
His income will be 200.000-50.000=150.000 EUR
2021 (same numbers)
Tax to pay (1.200.000-10.000)*0.25=297.500 EUR
Income 200.000-297.500=-97.500 EUR
A more realistic example:
Wins 25.000 EUR/Losses 15.000 EUR
Now
(25.000-15.000)*0.25=2500 EUR
Income 10.000-2.500=7.500 EUR
2021
(25.000-10.000)*0.25=3750 EUR
Income 10.000-3750=6250 EUR
Another goodie of the new law will be that a german trader has to pay tax for every win instantly and can get the money back at the end of the year via his annual tax declaration.
