Posts Tagged ‘forex taxes’

Taxes forex

Dear traders forex, in this article I want to continue the theme of cashing in forex and taxes when withdrawing money earned on the currency market
Long thought as yet to present you this article that there was no “extra” questions and attempts to involve you for tax evasion, the profits obtained in the forex market, so if you all want me to what I say “pay taxes do not have to! .. “, then of course you are wrong! ..
Have to pay taxes (!), But I do not argue that earn this same profit on forex is not so easy and such traders who profit constantly, not so much, so that the article will be useful for only a little, although I think the interest in it will be present in many …
And considering that the money in the forex gets very hard work: as a psychological and mental, then of course many traders question: “Why did pay taxes, and so I constantly risking their money, no one taught me trade, I myself ran into pitfalls, lost money, paying for training, work through the Internet, and here and taxes ??? ”
I agree, sometimes it’s very sad and I is no exception, but such are the laws of your country, you get a profit from operations – pay taxes, and there’s no getting around it. Yes you can try to evade taxes and will likely have no one will notice if the amount you withdraw is rare and not very large, but if the profit on forex – a constant your income, then it is better to pay taxes and “sleep”!
In this article we consider the cases in which you need to do it and what are the ways to reduce taxes (and legitimately) and including in some cases, you can not pay them for any reason.
First of all, it should be remembered that the tax is paid in the Forex basically only out of profits:
As far as I know, the profits derived from transactions with trading the financial markets, including Forex, taxed – 13% – 15% of the profits (for Russia and Ukraine, respectively). Payment of tax is carried out with the income for the year and for this you need to submit a declaration to the Tax Office.
Granted, the percentage is far smaller !!! Earned the “blood and sweat” $ 10,000 a year, give 1300-1500 dollars …
Now about WAYS paying tax on forex:

First of all you need before opening a forex trading account to find out whether your broker pays forex taxes for you or you need to pay the tax when removing the profit on their own?
If the broker pays himself, then you do not worry about it – you will get the amount in your account, net of tax …
If you do not pay, then of course you need to decide for yourself whether you want to pay taxes at the end of the year, or try to reduce its interest rate or even will to evade taxes (But just to warn you – this is at your own risk, I do not in any it is not recommended!) … in this case, still need to find out: Will a broker reports on your account in the tax!
Exactly when you need to pay tax:

1 It is already paying taxes when you withdraw money from the internet! That is, get them as real money on hand or bank account bank in your country (in any currency).
If you get them as cash (in the exchanger webmoney, for example, or do a mutual exchange with a friend), then it is your right to pay or not.
This question is very important formulation of receipt of payment and form of getting money!
If the money is still coming to the bank and the words “Forex”, “Financial Markets” in payments does not appear, then the tax rate may be different, such as below (if you want it of course).
The options are:
1) You can pay a monthly common minimum tax, as the tax on the activities of the Internet (but for this you need to register as a PI or PE): freelance, business information and etc., but no matter, you got a profit this month or not! So how to check what you are really doing online is not as easy (if not check e-wallets). And if the money came from your electronic purse and it just withdrawals and “forex” does not exist anywhere, then it is difficult to prove that this is not so.
2) the best course to consult with accountants on this issue and I think they are just something you tell us how to reduce the tax rate.
2 If you are an individual entrepreneur or Self-employed (in Ukraine), it is better to pay taxes!
At least a single tax on any kind of activities related to the Internet and sleep well – described in detail in paragraph (1) …
Do not forget about the wording of option payments and cashing (cashing eg through exchange offices).
3 Withdraw the profit to the bank account: to profit from financial operations on Forex or any other financial market (the wording of payment with such emphasis and payment is received from a legal entity).
If there appear the words “Forex”, and etc., then you are already covered by the payment of tax of 13-15% profit !!!
4 Profit shooting time – increases chance to be controlled and it is better in such cases do not joke with the tax.
5 Conclusions large sums of money and again the same – the time (the same).
6 If your bank delivers reports to regulatory authorities on the movement of money in your account or card.
When you can postpone the payment of taxes or do not pay them to try (at your own risk):

1 Your Forex Broker is already done for you when withdrawing money – definitely do not pay!
2 They took the money only on the e-wallet and not to cash the money and spend in the internet (again, if you do not live in Russia, and electronic money is not equal to the ordinary law of money).
3 They took no profit, and the account balance or loss of your trading for the year is more than the profit and they documented. And these documents will be sufficient to prove that the profit you have not received.
4 They took the money on the card and Payoneer cashed at any ATM in your country or abroad (for reasons already explained in a previous article about cashing money from forex).
5. you withdraw money at stake Bank of the country of residence, you are not. But another question is how you will feel when stored money in the bank of a foreign country? .. Himself so do not probyval, but I think it’s perfectly logical (for example – offshore, Swiss bank accounts etc).
6 It is certainly possible to transfer money and your bank card (Visa or Mastercard), but it is desirable that the amounts were not particularly large, and only if the bank does not submit reports to the tax without your knowledge – it is necessary to clarify this point (!) (since I know that the bank is obliged to submit data on the movement of funds on your card only by court order, and in other cases, no!) + wording payment should smack in the transfer of personal funds!
And note that shoot better amount in such cases it is through electronic payment systems (such as Webmoney + then tied him to a map of your bank) – reason: the wording of the payment does not give you money as money received from forex trading (such as “Returns … “) + this operation is not related to the business activity! See below for an example:

That’s all I wanted to say about taxes from payments received when withdrawing money with forex … I do not think I opened my eyes to something beyond the new, but all I know – described.
I repeat: I certainly do not encourage anyone to avoid taxes !!!
Pay taxes and it is desirable to also allow you to “sleep”! Especially if you are a successful trader and do not want to burden yourself with unnecessary problems and so hard-earned money.
Just want to clarify this situation is valid at the time of this writing, over time, I think the situation will in any case lead to the fact that the income received through the Internet is all the same will be monitored. So the issue is not taxes – it is only a temporary phenomenon.
And of course, interested in the opinion of each of you about paying taxes? Maybe someone knows better than me in this matter, or is constantly faced with similar situations. So grateful for the good advice and comments from your side.
I do not know for Russia, but other countries, these schemes will work (we do not have the law on electronic money – for now …)