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How is forex trading taxed in your country?

  • #21
  • Jun 9, 2008 3:09pm Jun 9, 2008 3:09pm
not sure exactly what the situation is in Hungary, but since you seem to be interested... did some more research:

This is not about forex, but maybe helps:

Individuals pay 25% for capital gains and other investment income.
20% tax rate is paid on capital gains from sale of shares in EU and OECD markets.

from: http://www.worldwide-tax.com/hungary/hungary_tax.asp

also can look at: http://en.wikipedia.org/wiki/Capital_gains_tax#Hungary

I was in Budapest for a month last year... the tram thing there is incredible. Really easy city to get around.
  • #22
  • Jun 9, 2008 3:12pm Jun 9, 2008 3:12pm
Quoting de123
yes, i saw that, that is absurd,...Če ne bi bilo izredne stopnje 40% in bi tudi za izvedene instrumente veljalo 20 odstotkov, bi lahko rekli, da je predlog povsem pričakovan, normalen in sprejemljiv. Takšen, kot je, pa daje vtis, da je znova aktualno urejanje "na horuk", ki smo se ga v zadnjih letih sicer že malo odvadili in ga tudi nismo pogrešali. Lahko torej govorimo o znova povišanem političnem tveganju za vlagatelje. Vendar - saj ste v volilnem letu možnost neviht že vračunali v svojo strategijo, kajneda? Kako naprej Doslej objavljeno gradivo si lahko ogledate tukaj [+]. Predlog zakona zdaj potuje v parlament, kjer naj bi ga obravnavali po nujnem postopku, tako da je realno pričakovati sprejetje še pred volitvami. Glede na ta urnik in siceršnje dogajanje v zadnjem času lahko torej zadevo razumemo tudi predvolilno. Račun se verjetno izide - oseb, ki aktivno trgujejo z izvedenimi instrumenti, je bržkone dosti manj kot tistih, ki se pridušajo nad grdimi špekulanti. Do sprejetja lahko tekst seveda še mutira. Odprta vrata pušča tudi navedba, da "lahko" ministrstvo za finance izda natančnejše predpise v zvezi z izvajanjem zakona. Zato to kratko predstavitev vzemite le kot izhodišče in opozorilo, da se klima spreminja.jst upam, da jim ne bo ratalo sprejet pred volitvami,..če ne bo pač treba it na 400:1 margina...lol
I guess it's english only here, but we can PM, if you want. Anyway, Slovenia has one of the most stupid politicians on this Earth, that is for SURE.
  • #23
  • Jun 9, 2008 3:16pm Jun 9, 2008 3:16pm
Basically as the saying goes... the only thing certain in life is Death and Taxes... the only reason it wasn't taxed in Slovenia before was most likely because it fell through the cracks somehow. As it becomes more popular, more and more countries are trying to tax it. I think in Italy and Germany? too for a while there was no tax on forex...
  • #24
  • Jun 9, 2008 3:16pm Jun 9, 2008 3:16pm
they wont be there longer then 6 month, thats for sure,..nothing else,..even if bush comes today here or not,...
its just money
  • #25
  • Jun 9, 2008 3:17pm Jun 9, 2008 3:17pm
Quoting ycomp
not sure exactly what the situation is in Hungary, but since you seem to be interested... did some more research:

This is not about forex, but maybe helps:

Individuals pay 25% for capital gains and other investment income.
20% tax rate is paid on capital gains from sale of shares in EU and OECD markets.

from: http://www.worldwide-tax.com/hungary/hungary_tax.asp

also can look at: http://en.wikipedia.org/wiki/Capital_gains_tax#Hungary

I was in Budapest for a month last year... the tram thing there is incredible. Really easy city to get around.
Thank you. There is no mentioning of Forex, futures or similar "instruments", so I guess they have no taxes for those... Yet.

Taxes up to 10% - 15% would be acceptable for me, anything more is a rip off.
  • #26
  • Jun 9, 2008 3:19pm Jun 9, 2008 3:19pm
Quoting hendrix
Thank you. There is no mentioning of Forex, futures or similar "instruments", so I guess they have no taxes for those... Yet.

Taxes up to 10% - 15% would be acceptable for me, anything more is a rip off.
I would not make that assumption at all. In most cases you are are hoping that it is a capital gain... cause if not then you probably have to pay regular income tax.

And if you made a lot of money, tax authorities would get really interested.

Now, if a county has no capital gains taxes AND forex profits are considered by them a capital gain AND even if it is your only source of income it is still considered a capital gain... THEN you are set!

or your basic tax haven no income tax country is great also
  • #27
  • Jun 9, 2008 3:22pm Jun 9, 2008 3:22pm
Quoting ycomp
Basically as the saying goes... the only thing certain in life is Death and Taxes... the only reason it wasn't taxed in Slovenia before was most likely because it fell through the cracks somehow. As it becomes more popular, more and more countries are trying to tax it. I think in Italy and Germany? too for a while there was no tax on forex...

Yes, you are right. As it becomes more popular and widely known, it HAS to be taxed. Ok, they can tax the damn thing if they want to, but not 40%. That's not normal.
  • #28
  • Jun 9, 2008 3:26pm Jun 9, 2008 3:26pm
Quoting ycomp
I would not make that assumption at all. In most cases you are are hoping that it is a capital gain... cause if not then you probably have to pay regular income tax.

And if you made a lot of money, tax authorities would get really interested.

Now, if a county has no capital gains taxes AND forex profits are considered by them a capital gain AND even if it is your only source of income it is still considered a capital gain... THEN you are set!

or your basic tax haven no income tax country is great also
OK, Hungary is off then. =) But Dubai? Oh, man... I hear everything is so expensive over there.

Anyway, maybe our ill-brained government will ease the 40% demand.
  • #29
  • Jun 9, 2008 3:28pm Jun 9, 2008 3:28pm
Quoting hendrix
Yes, you are right. As it becomes more popular and widely known, it HAS to be taxed. Ok, they can tax the damn thing if they want to, but not 40%. That's not normal.
yeah I'd be upset too... some countries that's just normal income tax levels though.
  • #30
  • Jun 9, 2008 3:34pm Jun 9, 2008 3:34pm
25% is ok. for me,..but i have one demand, that i do not inform them about each trade like at stocks,..., in any case i will simplify it just the sum for the year,...if they wona to complicate the procedure,..like it is at stocks...for each trade i made in a year, i had to say it at tax appeal...that can be insane,...in forex.
its just money
  • #31
  • Jun 9, 2008 3:34pm Jun 9, 2008 3:34pm
Quoting hendrix
OK, Hungary is off then. =) But Dubai? Oh, man... I hear everything is so expensive over there.

Anyway, maybe our ill-brained government will ease the 40% demand.
I am not saying Hungary is not 20% or 25%, could be... but you gotta talk to someone who knows about it.

In the Wikipedia link it is listed as "all capital income" being 20% flat tax rate. So maybe forex is also 20%. ok, I think I'm just confusing things. Probably it is higher. Many countries that tend to differentiate between active trading and appreciation of stocks.

Any Hungarians here?
  • #32
  • Jun 9, 2008 6:07pm Jun 9, 2008 6:07pm
Well considering quality of life... I think US territories would be a great option here. Last I checked Puerto Rico and Guam have no income taxes at all, but still have many benefits of US involvement (tourism, trade, schools, good crime rate, some political representation, etc).
  • #33
  • Jun 9, 2008 7:20pm Jun 9, 2008 7:20pm
Here in Italy there are no taxes for forex gains. Forex gains are taxed only if the equivalent of euro 50.000 is in a position for more than 5 days. But spot forex positions are closed and re-opened each day, so... no taxes

It's sure: online banks here say this on their website to attract forex traders.

Forget Dubai: I went there many times and I think it's really un unpleasant place to live. Great if you want to "live the luxury" for a week, but no more.
  • #34
  • Jun 9, 2008 7:23pm Jun 9, 2008 7:23pm
I thought with Italy, that it was over... or that will be over soon? At least I thought I saw one Italian guy complaining about it somewhere and wanting to find some place to move to, to save on forex tax.
  • #35
  • Jun 9, 2008 7:52pm Jun 9, 2008 7:52pm
Quoting Rabid
Last I checked Puerto Rico and Guam have no income taxes at all, but still have many benefits of US involvement (tourism, trade, schools, good crime rate, some political representation, etc).
No taxation! You're a bit off my friend. PR, Guam, and the US Virgin Islands all have what's called the "mirror system". The same US Federal tax rate rules apply, just all of the taxes stay in the territory.

You may be thinking of local (state) taxes, which those territories don't have (I'm certain about the USVI, pretty sure Guam and PR are the same way too).
  • #36
  • Jun 10, 2008 12:38am Jun 10, 2008 12:38am
Quoting jagui
Here in Italy there are no taxes for forex gains. Forex gains are taxed only if the equivalent of euro 50.000 is in a position for more than 5 days. But spot forex positions are closed and re-opened each day, so... no taxes

It's sure: online banks here say this on their website to attract forex traders.

Forget Dubai: I went there many times and I think it's really un unpleasant place to live. Great if you want to "live the luxury" for a week, but no more.
Thanks for the info. I was in Italy couple of times and I could imagine myself living there. Let's hope it stays this way with the taxing politics.
  • #37
  • Jun 10, 2008 1:14am Jun 10, 2008 1:14am
Quoting ycomp
my info may be dated but...
NL: still not sure about this... it may be very tiny tax.. (taxed on a small % of your assets... effectively like 1.2% or something)... but I am not entirely sure. Even Dutch people argue over this one. Search futures forums for the debate. perhaps it was on elitetrader? And then maybe what they are talking about doesn't apply to forex?
Idear is: 4% gain on all capital (fictional gain, not actual), government want 30% of the profit. Making the effective taxation 1,2% of the total capital.

Personally I think that's pretty modest. Income tax although is huge, 52% for 50.652 - everthing beyond that point.

Also see http://en.wikipedia.org/wiki/Capital_gains_tax for other countries (about 30)
Happy Pip-hunt... KISSes
  • #38
  • Jun 10, 2008 4:29am Jun 10, 2008 4:29am
Quote
No taxation! You're a bit off my friend. PR, Guam, and the US Virgin Islands all have what's called the "mirror system". The same US Federal tax rate rules apply, just all of the taxes stay in the territory.

Didn't say no taxation at all. No federal income tax is what I meant. Here in the US we pay both state and federal income taxes, I actually ended up paying more to state than federal, so those guys get off pretty cheaply out there.

In the US forex is traded as a section 1256 contract, which is exempt from wash sale rules and given "mark-to-market treatment" of losses and gains... so any open positions are effectively taxed at the closing rate. These contracts are treated with a 60/40 capital gains split, meaning 60% long term and 40% short term. That equates to under 25% of the net for the year, which is lower than any income tax bracket by far.
  • #39
  • Jun 10, 2008 5:20pm Jun 10, 2008 5:20pm
Quoting ycomp
I am not saying Hungary is not 20% or 25%, could be... but you gotta talk to someone who knows about it.

Any Hungarians here?
Hi there,

yes, I used to live in Hungary, but I left and now I live in Australia. The whole tax system is the worst in Hungary to compare with East-Central-European area. Actually, FX tax is different from stock exchange' s tax, it is more than 41% and you MUST calculate it from all winnings and leave losings out of consideration. I would say that it is ridiculous but it is miserable. When you made 100 000 EUR winnings and 200 000 EUR losings, your balance apparently would be -100 000 EUR, but you must pay taxes after 200 000 EUR winnings! Yes, it is true, yes, I am sure that, I had been living there 38 years ( I was born there ), I just moved to AUS last year.

So, what I did is the following: I established an offshore company in a tax paradise and opened a trading account on my company behalf. I pay taxes in tax paradise and that is it.

Finally I saw I can make serious money from everywhere via internet, so I left my country and keep trading from here.
Lead me, follow me or get out of my way!
  • #40
  • Jun 10, 2008 5:28pm Jun 10, 2008 5:28pm
Quoting Evil Jerrad
Hi there,

yes, I used to live in Hungary, but I left and now I live in Australia. The whole tax system is the worst in Hungary to compare with East-Central-European area. Actually, FX tax is different from stock exchange' s tax, it is more than 41% and you MUST calculate it from all winnings and leave losings out of consideration. I would say that it is ridiculous but it is miserable. When you made 100 000 EUR winnings and 200 000 EUR losings, your balance apparently would be -100 000 EUR, but you must pay taxes after 200 000 EUR winnings! Yes, it is true, yes, I am sure that, I had been living there 38 years ( I was born there ), I just moved to AUS last year.

So, what I did is the following: I established an offshore company in a tax paradise and opened a trading account on my company behalf. I pay taxes in tax paradise and that is it.

Finally I saw I can make serious money from everywhere via internet, so I left my country and keep trading from here.
wow, that's rough... I guess the moral is... never have a losing position.. EVER

you sure that's a good idea to use an offshore company while living in Australia? I heard that the Australian tax authorities are pretty much as vigilant as they come.
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