After you started to earn money in the foreign exchange market regularly, the question naturally arises: do you need to pay taxes on Forex?
The answer is unequivocal – it’s necessary, of course, if your annual income is only a few tens of dollars, not a single tax inspector will bother you, but in the case when the profit is already calculated in thousands of dollars, you should definitely think about taxation.
And it’s better to do it yourself, without waiting for the visit of the tax inspector, who does not always know how to calculate correctly.
You will have to do everything yourself, so it will not be superfluous to know what taxes should be paid when trading on Forex and what is the procedure for paying them.
Forex taxes – taxation of profit received as a result of trading, namely profit, minus the overhead costs that contributed to the conduct of trade.
Type of tax – all profits earned from working on Forex are subject to income tax. In Russia, its rate is 15%. Do not believe the statements of the inspectors that this type of profit relates to gambling; otherwise, you will have to pay a lot more.
At the same time, the interest on the deposit accrued by the broker on the balance of the account should be taken out in a separate column. This profit is taxed at a rate of 35%.
The tax base – you pay with profit, not with income. Otherwise, the number of payments may exceed the number of earnings. This means the financial result, namely the difference between the sum of successful and unprofitable transactions.
For example, during the reporting period of Forex trading, 100 transactions were made of them unprofitable 35 in the amount of 3,700 US dollars and profitable with a total amount of 7,800 US dollars. Net profit is 7800 – 3700 = 4100.
After the calculations, we proceed to the calculation of the tax itself 4100 x 15/100 = 615 US dollars.
It is clear that the amount received should be converted into rubles at the exchange rate of the Central Bank of Russia on the day of payment.
When to pay – after the end of the year, no later than April 30 at the end of the year.
Where to pay – information on where you should pay income, you can get from your tax inspector at the place of residence. This is the account number and payment code.
Filing a declaration – after you have calculated your profit, you should proceed to fill out the tax return itself, it will be submitted before the end of April, but it’s better not to delay this matter, as some adjustments may be made by the tax authorities and it’s better not to do it at the last moment.
Additional documents – it is advisable to immediately bring additional documents with you to the tax office since questions will arise unambiguously. You will need a printed statement of the account for the year, and from yourself, make a small plate in which indicate the number of losses and the amount of profit. The beautiful design will help you quickly prove your case.
The process of filing a tax return seems rather complicated only for the first time, after which you will definitely know all the pitfalls and will be able to manage forex taxes in just a few hours.
How not to pay taxes on forex earnings?
Such a question sounds very often after a trader calculates how much he should pay at the end of the reporting period.
On the one hand, it’s not good to not pay, but our reality is that those who pay and always want to be law-abiding are punished because the one who evades still needs to be caught.
This allows you to do the same with offshore companies, its only drawback is the price, since the maintenance of an offshore company also has its value.
That is, if you earn $ 1,000 a month, it will be easier for you to pay 15% of this amount if your income of more than $ 5,000 you can already think about offshore.
The cost of the issue is about $ 1,000; this amount includes opening a company and an account in the payment system, about the same cost of maintaining the company per year.
That is, if you have to pay 15% or 9000 dollars of tax with $ 60,000, then in the case of an offshore company only 1,000, the choice is obvious.
True, it should be noted that all expenses will also have to be spent through the company using a corporate card. If you want to transfer money to Russia to your personal account, you will need to pay tax on dividends received.