Daytraders, who act regularly and even earn their livelihood, have to tax their profits if they are headquartered in Germany. If you have your head office abroad, you have to follow the tax situation. There’s no way around it. The following article provides important approaches to the taxation of year Plus500 scam there earnings, which serve as a guide. However, this contribution does not constitute tax advice.
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It is quite possible that tax administrators classify the Daytrader as a trader. In general, this is not the case if the Daytrader fulfills the following criteria:
- it is exclusively traded with personal assets
- no activity as a financial enterprise (§1 paragraph 3 KWG) is exercised
- There is no permission as a financial institution
- there is no permission as a trading company
- there is no admission as an exchange trader (§ 19 BörsG)
How often the Daytrader acts or how high the profits are, does not matter here. day learn more here It also does not matter if the Daytrader already has a professional education.
Daytraders do not have to fear that they can be classified as even Social Trading some traders, regardless of their trading activities. But to make sure, Daytrader should be advised by a tax consultant or attorney.
How are profits taxed?
Gains from daytrading are capital income or represent an income which must be taxed accordingly. Two special features are to be considered. On the one hand, the maximum tax rate is 25 percent (plus solidarity surcharge and, if applicable, church tax) and, on the other hand, a lump sum of give Copy Trading of 801 euros per person is exempt from tax.
The withholding tax and the amended tax calculation were introduced in Germany at the beginning of 2009. From now on, no distinction is made between tax-free income from securities gains and taxable speculative profits. In addition, the maximum tax rate of 25 percent has been applied since then. The solidarity surcharge and, if applicable, the church tax will be added. It should be noted, however, that the individual personal income tax rate applies. If this is higher than 25 percent, only the maximum set is set. However, the full rate of taxation is only achieved with an income of approximately 70,000 euros per year.
In principle, the total profit generated by the profits and losses of the trades must be taxed. For example, if a daytrader has earned a profit of 60,000 their 24option scam will euros in 100 transactions and lost 10,000 euros in 50 transactions, then only the surplus of 50,000 euros has to be taxed.
However, it should also be noted that this surplus account may only be applied to equity transactions. For example, it is not possible for a daytrader to offset the losses from the share transactions with the interest income from a sparrow. This can not be taken into account in the case of wage tax. It is practical, however, that the losses can be transferred to the next year, in order to offset new anyoption review because them, if necessary, with profits from equity transactions.
How is the taxation carried out when the broker is located abroad?
Numerous online brokers have their headquarters abroad and in comparison to the brokers in Germany, they do not immediately transfer the taxes to the respective tax office. So it’s up to the Daytrader itself to tax one IQ Option scam two the profits. It is not automatically exempt from withholding tax if the broker has its seat abroad. To say “I did not know” or simply ignore the fact can be nasty. Due to the different OECD agreements, the international financial authorities work closely together and are always looking for tax evaders. If you are caught, very high payouts and draconian penalties threaten.
As described above, the profits generated by a foreign broker must be taxed by the Daytrader itself. However, this also results in an advantage, since the profit is not reduced, but can be this etoro scam think reinvested (accumulated), which in turn can be used to build up higher position values.