Important: Taxes on forex
Oct 28, 2015 at 06:58
826 Angesehen
2 Replies
Oct 28, 2015 at 06:58
Hi Myfxbook traders,
In this world we all have to pay a lot of taxes. Since I started trading forex, I wanted to know if we need to pay taxes on our fx profits. I've never seen information about taxes on forex on this forum or other forums. Every signalseller advertises a lot of profits every year but you never hear them speak about taxes and taxes should be taken into account because they have a significant influence on a performance.
Let's say your Risk reward is 1:2 and your tax% is 50%. your risk reward now ist 1:2 but 1:1.
Another example: you start with 100 000euro and after 1 year it is now 150 000 euro. A 50 000 euro profit. If you need to pay 50% taxes on that, you pay 25 000 from a random bankaccount and leave the 150 000euro in the account. The next year your account is back to where it started at 100 000euro due to a bad trading year. Now you don't need to pay taxes because you didn't make any profits. Now a lot of people think I am back at break even but remember you have paid 25 000 euro on taxes so actually you lost 25 000 euro so you need to make 25% again to be at break even. But when you have gained 25% you again need to pay taxes on that which makes it harder to be profitable.
So my questions:
Do u need to pay taxes in your country (name it please)? If yes, what's the %?
Do you need to pay taxes on a yearly basis/ per trade basis or only when you withdraw your money from your broker back into your bankaccount?
1 question from the people from Belgium on this forum. Do u know how the taxregulations on forex work in Belgium? I've called to tax regulators today and even they couldn't give me a 100% clear answer. This is so frustrating.
Best Regards
In this world we all have to pay a lot of taxes. Since I started trading forex, I wanted to know if we need to pay taxes on our fx profits. I've never seen information about taxes on forex on this forum or other forums. Every signalseller advertises a lot of profits every year but you never hear them speak about taxes and taxes should be taken into account because they have a significant influence on a performance.
Let's say your Risk reward is 1:2 and your tax% is 50%. your risk reward now ist 1:2 but 1:1.
Another example: you start with 100 000euro and after 1 year it is now 150 000 euro. A 50 000 euro profit. If you need to pay 50% taxes on that, you pay 25 000 from a random bankaccount and leave the 150 000euro in the account. The next year your account is back to where it started at 100 000euro due to a bad trading year. Now you don't need to pay taxes because you didn't make any profits. Now a lot of people think I am back at break even but remember you have paid 25 000 euro on taxes so actually you lost 25 000 euro so you need to make 25% again to be at break even. But when you have gained 25% you again need to pay taxes on that which makes it harder to be profitable.
So my questions:
Do u need to pay taxes in your country (name it please)? If yes, what's the %?
Do you need to pay taxes on a yearly basis/ per trade basis or only when you withdraw your money from your broker back into your bankaccount?
1 question from the people from Belgium on this forum. Do u know how the taxregulations on forex work in Belgium? I've called to tax regulators today and even they couldn't give me a 100% clear answer. This is so frustrating.
Best Regards
Mitglied seit Mar 14, 2016
11 Posts
Mar 16, 2016 at 08:27
So far as I know you do not need to pay taxes.
I'm from Taiwan, all you need to do is tell the bank that the profit is from foreign investment.
Simple as that, you can withdrawal your money.
But of course I only withdrawal small amounts since I only make small amounts.
If it reaches certain amount then I believe you will have problem with withdrawal.
As for your last question, sorry I'm not from Belgium, good luck :)
I'm from Taiwan, all you need to do is tell the bank that the profit is from foreign investment.
Simple as that, you can withdrawal your money.
But of course I only withdrawal small amounts since I only make small amounts.
If it reaches certain amount then I believe you will have problem with withdrawal.
As for your last question, sorry I'm not from Belgium, good luck :)
Mar 16, 2016 at 15:00
(bearbeitet Mar 16, 2016 at 15:01)
In Belgium forex profits are tax free so long you don't do it professionally. If you do it professionally it used to be 33% (aka capital gains for 'speculative transactions', can't confirm if this still is the case). One option is to take residency in the Netherlands where it is tax free first 17.000 and like less than 2% for the remaining. Or in the UK where it is considered gambling.
Losses are tax deductible.
Losses are tax deductible.
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