Today the world currency market gives a great deal of possibilities for funds multiplication to the participants. However thus, beginning game on a difference of exchange rates, nobody has an idea, how an income tax payment from this activity will be made. It is necessary to notice that this question like, by the way, and many other aspects of work in the market Forex, is not definitely settled in the legislation of any country. Tax disorders can lead to serious financial and nervous losses. As corresponding state structures, as a rule, are inclined to interpret all doubts not in favor of the payer it is necessary to have a clear idea of the general bases of taxation system of trading operations taking into consideration the features of work with concrete brokers in the market Forex. It will be essential to know about payment of taxes in this market.
By the general rule incomes in the form of the rates difference from retail operation with currency are subject to the taxation in accordance with general practice. The base rate of income tax makes today 12 percent. But there are two important problems. Some dealers work till now under the bookmaker license as de facto trade is carried out only within the limits of system created by such dealer. Game transactions were taxed until recently in 35 percent. As for offshore dealers they give clients a free hand and do not inform tax departments about the incomes of clients.
Let’s answer some questions which are frequently asked by traders:
– How to build relations with tax departments? Is it possible not to inform them at all about the activity on the market Forex? For the beginning trader it is better to choose the broker who already is the tax agent. And he will incur all questions on interaction with tax departments. If the investor wishes to solve these questions himself there will be many complexities how to explain to tax departments, whence there was a profit on operations in the market Forex. This business is very much not idle. It is better to entrust the matters to the professionals.
– Why a question of the taxation Forex is not settled till now in the legislations of many countries? If to speak about professional mutual relations in the market (banks, stock exchanges), this question is normally adjusted. As to private investors and corporations, here, certainly, state intervention would be better.
– The more taxes were taken off from the investor than it is necessary. Is there an effective way how to defend the rights? Practice shows that it is better not to argue with the state. The recommendation is the only one in this connection: to choose such a broker who is the tax agent. He will help to solve all questions.
-The question with taxes payment on the market Forex causes complexities for its participants till now. As the operating legislations of many countries does not contain the norms allowing precisely to define the size of the income of operation on purchase and sale of currency, and owing to a number of articles such operations at all are not subject to the taxation. And many traders diligently avoid dialogue with tax departments. In general, the investor should accurately know his rights and duties.
There are 2 options you can make money on currency exchange market.
Alternatively, you can hire experienced traders to manage the money on your trading account and they will trade for you. Read more about forex investment.