I am a South African resident. I am a full time forex trader (almost a year now). I trade via a broker overseas, I deposit funds into my trading account via their bank accounts here in South Africa. I would like to know if my profits from trading forex are taxed, how do I declare this and what forms should I fill from sars. Also, what can I expect in terms of what percentage of tax I will pay.
You will be taxed on the profits as normal income, so similar to trading stock. Your costs will be the purchase price of the shares and the income the selling prices. You would include this under "foreign income" on the ITR12 tax return as your earnings are based overseas. When the money comes into your account, how is it translated into RANDS, when do you bring it into SA.
The tax rates would be based on the income tax rates found in the 2015 Budget
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.