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Taxing income from forex trading around the world

  • #1
  • First Post: Sep 17, 2013 3:03pm Sep 17, 2013 3:03pm
Hello everyone,

i've tried to find information on how forex income is taxed in different countries, but couldn't find any reasonable info.
Does anyone have a good source for info like that?


Greetings,

B
  • #2
  • Sep 17, 2013 6:50pm Sep 17, 2013 6:50pm
Quoting barrett
Hello everyone, i've tried to find information on how forex income is taxed in different countries, but couldn't find any reasonable info. Does anyone have a good source for info like that? Greetings, B
Each country has its own policy. I doubt that you will find a global source of information.

I may be wrong though ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Sep 18, 2013 5:48am Sep 18, 2013 5:48am
Here in Egypt it's not taxed. Because according to the law, every financial activity someone is profitable from has to be running inside the country to be taxed and there're no brokers in here. Check with an attorney.
So sorry for always replying late! But I got 2 Jobs!!
  • #4
  • Sep 18, 2013 10:22pm Sep 18, 2013 10:22pm
Most Countries consider it as Capital Gains Tax. So even if your broker and Forex trading in another country you may still be taxed depending on your country laws. Best to get a certified accountant to verify for you but this is a good start point

http://en.wikipedia.org/wiki/Capital_gains_tax
  • #5
  • Sep 18, 2013 10:26pm Sep 18, 2013 10:26pm
Quoting barrett
Hello everyone, i've tried to find information on how forex income is taxed in different countries, but couldn't find any reasonable info. Does anyone have a good source for info like that? Greetings, B
When one lose money, the govt don't reimbursed their loss. Now they make tiny profits from Forex, when its almost the same as gambling as what earned today may be lost the other day.

My country - > NO TAX! This is why a lot of people have migrated over here to protect their wealth.
  • #6
  • Sep 18, 2013 10:47pm Sep 18, 2013 10:47pm
Quoting 5percent
{quote} My country - > NO TAX! This is why a lot of people have migrated over here to protect their wealth.
Which country do you live in?

These look like the best ones for no Capital Gains Tax from that Wikipedia article

Barbados
Belize
Cayman Islands
Ecuador
Egypt
Isle of Man
Jamaica
Malaysia
Sierra Leone
Singapore
Sri Lanka
Switzerland
Thailand
  • #7
  • Sep 18, 2013 10:50pm Sep 18, 2013 10:50pm
Quoting Chubbly
{quote} Which country do you live in? These look like the best ones for no Capital Gains Tax from that Wikipedia article Barbados Belize Cayman Islands Ecuador Egypt Isle of Man Jamaica Malaysia Sierra Leone Singapore Sri Lanka Switzerland Thailand
Here in Egypt there's a capital gain tax except if the company quarter office is abroad like all the brokers because we don't have locals. Sorry for the interruption. Just wanted to make it clear
So sorry for always replying late! But I got 2 Jobs!!
  • #8
  • Sep 18, 2013 11:22pm Sep 18, 2013 11:22pm
Quoting Chubbly
{quote} Which country do you live in? These look like the best ones for no Capital Gains Tax from that Wikipedia article Barbados Belize Cayman Islands Ecuador Egypt Isle of Man Jamaica Malaysia Sierra Leone Singapore Sri Lanka Switzerland Thailand

Yes Singapore . And i only will deal with Aussie Broker.

US -> Too many rules and problem. A lot of brokers are leaving that country. FXCM also ceased trading with Singapore clients
Europe - > Too many drama and issues. Just like how cyprus become a turn off for investors now.

NZ/AUD - > More stable.
  • #9
  • Sep 19, 2013 12:05am Sep 19, 2013 12:05am
hi everyone,

as long as you don't trade forex, stocks etc short-term, but more like an investment, no income tax in New Zealand.

no capital gains tax in NZ.
  • #10
  • Sep 19, 2013 2:11am Sep 19, 2013 2:11am
Quoting Chubbly
{quote} Which country do you live in? These look like the best ones for no Capital Gains Tax from that Wikipedia article Barbados Belize Cayman Islands Ecuador Egypt Isle of Man Jamaica Malaysia Sierra Leone Singapore Sri Lanka Switzerland Thailand
Have you been to the Isle of Man - no thanks.

I like in the UK. It has a big stable economy. Yes we get taxed on Trading EXCEPT Spread Betting. Spread Betting is basically the same as trading but treated differently = no tax.
  • #11
  • Sep 19, 2013 3:18am Sep 19, 2013 3:18am
Tax on Trading? Naah..... never heard of that. May never really have to pay any
  • #12
  • Sep 19, 2013 5:25am Sep 19, 2013 5:25am
Hi,
is there any currency pair these days that credits your account when holding overnight?
Sorry for posting here, but I think it is not necessary to open Thread for just one question.
  • #13
  • Sep 19, 2013 5:31am Sep 19, 2013 5:31am
Quoting xjames26
Sorry for posting here, but I think it is not necessary to open Thread for just one question.
When the question isn't related to the current thread, yes it is necessary to open a new thread ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #14
  • Sep 19, 2013 10:43am Sep 19, 2013 10:43am
Thanks for the replies!
I guess i'll talk to my tax accountant in the end of the year and see if he knows anything else.

Quoting Chubbly
Most Countries consider it as Capital Gains Tax. So even if your broker and Forex trading in another country you may still be taxed depending on your country laws. Best to get a certified accountant to verify for you but this is a good start point http://en.wikipedia.org/wiki/Capital_gains_tax
This is indeed a good article. As you say, it is only a starting point though. In Germany, for example, if Fx is your only source of income and you don't have another job, an additional 19% turnover tax is added.

I've been thinking that since we are a pretty big and international community, here at FF, we could maybe come together and post the tax situation in our respective homecountries...? I'll just go ahead and post the tax situation in germany, and hope that you guys join in

Germany:
28% on profits
additional 19% if Fx is your only job.



Greetings
  • #15
  • Sep 20, 2013 2:59am Sep 20, 2013 2:59am
Quoting barrett
Thanks for the replies! I guess i'll talk to my tax accountant in the end of the year and see if he knows anything else. {quote} This is indeed a good article. As you say, it is only a starting point though. In Germany, for example, if Fx is your only source of income and you don't have another job, an additional 19% turnover tax is added. I've been thinking that since we are a pretty big and international community, here at FF, we could maybe come together and post the tax situation in our respective homecountries...? I'll just go ahead and post...
47% tax....WOW
  • #16
  • Sep 20, 2013 3:19am Sep 20, 2013 3:19am
Dubai - UAE

Forex gains = no tax 0
  • #17
  • Sep 20, 2013 6:10am Sep 20, 2013 6:10am
Quoting Lover Man
{quote} Have you been to the Isle of Man - no thanks. I like in the UK. It has a big stable economy. Yes we get taxed on Trading EXCEPT Spread Betting. Spread Betting is basically the same as trading but treated differently = no tax.
If trading as Spread Betting

UK - Spread Betting:

0% on profits
  • #18
  • Sep 20, 2013 7:19am Sep 20, 2013 7:19am
Quoting barrett
Thanks for the replies! I guess i'll talk to my tax accountant in the end of the year and see if he knows anything else. {quote} This is indeed a good article. As you say, it is only a starting point though. In Germany, for example, if Fx is your only source of income and you don't have another job, an additional 19% turnover tax is added. I've been thinking that since we are a pretty big and international community, here at FF, we could maybe come together and post the tax situation in our respective homecountries...? I'll just go ahead and post...

As far as I'm concerned in germany it's part of the "Abgeltungssteuer" as all your capital-income. Have a look at §20 Abs. 2 Nr. 3b EstG (http://www.gesetze-im-internet.de/estg/__20.html) and (http://suite101.de/article/der-forex...steuer-a116255). So therefor it's 25% + 5,5% (on those 25% as "Solidaritätszuschlag").
  • #19
  • Nov 2, 2014 3:13am Nov 2, 2014 3:13am
slovenia: no tax on forex.
Everyone has a plan 'till they get punched in the mouth.
  • #20
  • Nov 2, 2014 3:59am Nov 2, 2014 3:59am
Australian Tax

As one mentioned, it's the same here, it depends on how often you trade.

If you're a trader that trades daily as your primary source of income, you would declare how much you earnt from FX at the end of the financial year and pay income tax on that. Here is the Australia Income Tax Rates:

https://www.ato.gov.au/Individuals/I...ome-tax-rates/

If you trade not so often and the income you earn from FX isn't relied on to meet expenses etc. it is most likely considered to not be assessable income, therefore you do not pay income tax on it. If it is assessable income and you make a loss, obviously you're not going to pay tax on that but the good thing is you can carry your losses onto the next year if you make a profit

Travis
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