In the pursuit of profitability, novice traders are addicted to the euphoria of profits and forget about the main thing: in most countries of the world, everything that brings additional income is taxed. And activity in the foreign exchange market is also not an exception.
Perhaps at first, while the market participant is just beginning to delve into the specifics of trading, or the profit from operations is up to $ 500. US per month, it makes sense to not worry about taxation – the state does not track small amounts. But, if you expect to get a stable income in the long term, tax evasion has very unpleasant consequences. At best, the violator will be penalized, at worst – criminal liability.
Each country has its own rules for filing a tax return with strict observance of deadlines, rules, etc. For example, in Russia, taxes are paid on the basis of the letter “On taxation of personal income tax … from operations in the Forex market”. Since the trading process takes place through a bank, then, in the case of significant amounts, the bank will inform the tax authorities as part of money laundering monitoring. Also, upon request of the tax, a dealing center can provide a report on all your work.
The tax return is filed once a year, since the trader is an individual (this applies to both Ukraine and Russia). The rate in Russia is 13%, in Ukraine – 15%. The filing of the declaration is not difficult, however, if the trader doubts the correctness of filling out or appreciates every minute, he can use the services of tax agents.
Quite often the question arises about the tax base. And here professional lawyers will come to the rescue, who, on the basis of an agreement between the trader and the bank / dealing center, will not only clarify all the issues, but also help determine what can be deducted from the tax base, how the tax amount is calculated, etc.
As in any business, Forex has its own loopholes to minimize taxation, without violating the current legislation. For example, in Russia, it is enough to open a deposit managed account, the amount from which is transferred to the account of the brokerage company. After a year of trading, the funds are returned to the bank. The amount not exceeding the interest on the deposit at the refinancing rate is not taxed. Anything higher is necessary to transfer to the current account and pay 13% tax.
Summing up, let’s say that it is the full knowledge of the legislation and its execution that will allow the trader to safely and safely perform trading operations on Forex. A stable emotional state – the key to successful trading!