Switch to TaxTim and WIN R10,000  T&C's apply
How do you currently do your tax?
SARS eFiling Tax Practitioner Auto-assessment New to tax


Tax on Forex Trading





This entry was posted in Tax Q&A and tagged , , , , , . Bookmark the permalink.

Bradley says:
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.
How do I go about paying tax on the forex income? Do I have any exemptions on this?

Also can you please give me advice in terms of paying less tax? I presume the best route is to maximize my retirement annuity contributions to 27. 5%?

TaxTim TaxTim says:
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.

  • Contribute towards a Retirement Annuity Fund
  • Open a Tax-Free Savings Account
  • Donate to a SARS approved/ registered Charity Fund
  • Join a Medical Aid Scheme
  • Keep a logbook if you receive a travel allowance
  • Keep a logbook if you drive a company car
  • Claim commission related expenses if you are a commission earner
  • Claim business travel if you are a commission earner
  • Claim your daily costs if you receive a subsistence allowance
  • Claim expenses if you earn a non-salary income

Please see our blog for more details here https://www.taxtim.com/za/blog/9-tips-to-pay-less-tax






Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.