30 September 2020 at 16:11
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%?
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1 October 2020 at 19:45
You would be taxed on the profit made if you are trading the forex. The rate at which the profit would be taxed is based on the rest of your income. The profit is added to your other income and then applied against the tax tables to calculate what your tax payable is. The trader should be sending you an income tax statement detailing the profit earned on the actual trades and the interest earned on the balance in your account. This would then be added to your salaried income and the tax payable would be calculated based on the tax tables. Please read our blog on 10 tips to Top 10 tips to pay less tax