29 March 2022 at 16:11
Q: How do I go about paying tax on forex income?
I will soon be receiving additional income of about R30000.00pm from a forex investor who is trading on my behalf, I am not trading. My current income is around R36000.00 to R41000.00 gross per month.
29 March 2022 at 19:45
A: Forex Trading for the purposes of making a profit and not to hold as an investment will be treated as revenue, i.e. the same as Self Employed/ Independent Contractor/ Freelancer. All expenses incurred from your forex trading must be deducted from the gross income of the trading to calculate the taxable profit from your forex trading. The profit made will be or must be added to your other income earned and then applied against the tax tables to calculate what your tax payable is. Therefore, forex traders should keep all their documents and records pertaining to their forex trading activities. Where and if necessary, convert your profit to South African rand.
Forex traders who are seen as South Africa Residents, are required to declare all their income and profits from forex trading on their annual tax returns. The reason is that if you are seen as a tax resident, this means that you will be taxed on all your income (local and foreign).
Top 10 tips to pay less tax:
The tips below cover all possible recommendations and may not be applicable to your individual tax situation. The only way to know which ones apply to you is to use TaxTim to complete and submit your tax return.
Please see our blog for more details here https://www.taxtim.com/za/blog/9-tips-to-pay-less-tax