Ya. I need to pay income tax to my govt. But I sill need not to pay for the extra earning for forex. Bangladesh has not any forex broker and they are not enough educated on forex. The people of govt worker are not still related with this market. So I need not to pay any extra amount for this. For this I pay some extra amount in income tax to recover this earning. I feel proud to do this.
Well that is a contradiction to me, because I thought that all governments try to get money from you however witch way you get it and try to pick you bare! :46:
In Holland, lotteries ad. are highly taxed like 30 %. Gambling has some restrictions and laws over here. when you win money in a legally recognized lottery or casino, usually the lottery or casino will pay the tax for you, It is already calculated in the amount the lottery is offering you, so over the amount you receive tax is already paid and to you it only looks tax free. The casino’s consider it business costs. if it is a real big amount you only pay a year later those 4% wealth tax.
Online casino’s are not aloud in Holland (though there are talks about law changes) and you have to pay taxes over the positive difference between losses and winnings whenever you have amounts deposit on to your bank account unless you already paid that in the country the website is registered but you have to prove that.
There are a lot of difficult laws concerning tax over here. Like What I said that above the amount of E 21.000,- you pay only 4%. wealth tax, That is only for a private person. When you have like a small business or shop or what ever, and you use the business money to [B]invest[/B] in Forex, a different tax-law will apply and it will be more heavily taxed, as like about 20%.
I can’t say a whole lot more about it since it is a rather complicated system and I am no Tax-adviser :22:
The whole system of taxation is designed to profit the banks.
Well we are so far from the truth. The reason for unbacking currency from Gold and silver is to be able to tax labour to build infrastructure that is built by workers but of course the resources and capital equipment must be bought so this becomes a fair trade but then war was ushered (I for one believe this is no coincidence) in 1914 one year after the federal reserve act.
This was the unravelling of many of the world’s currencies as currency where no longer backed 1 for 1 with Gold instead they were now backed halfway. The 2nd world war was the nail in the coffin for Europe with the US holding on the Gold.
I rambled slightly… The point is gold is not taxable and without currency it would be impossible to tax the population. The creation of the federal reserve and the introduction of free floating currency meant the modern taxation system is now responsible for collecting and paying interest on currency created out of thin air that our government’s call deficit. A deficit created from the issue of bonds (glorified IOU’ s) that the FED and Chinese have been buying in turn for cash that is then used to pay government workers and big defence contractors who in turn deposit in the banking system who creates more money via loaning the same money thus creating more money in the system which interest is also paid on and tax is collected from all wages this new money pays and these tax are used to pay the principle with interest on the bond held by these Chinese and private banks who collectively own the FED who in turn influence global central banks since everyone is supported by a valueless Dollar.
So you see… Your taxes don’t go to public service the printing press took care of that the moment the penniless FED and maybe even penniless Chinese wrote a blank check to buy those worthless bonds that we have no ability to pay as we have burrowed more than all the Gold and silver we can muster. Since China still have most of the world’s Gold we may just live to see how this story ends.
I have decided no longer to participate in the lie.
[B]The doubt[/B]
sure mate, i suggest you choose Greece;
LOL
taxation in Greece is as light as a gravestone with an elephant sitting on it just to make sure you are not going anywhere; yet, this is not bad enough, there is something even worse and that is HOW THE TAXES ARE COLLECTED in this tax haven called Greece.
PS. do better research before such a decision
PS2. you say you are a student? is this the typical information a student in your country is getting fed? we should open some serious scientific financial books or mags from time to time as traders that we are (or wish to be)
Cheers
Good video! It’s important to pay your tax.
a. it’s important to make a comfortable, within rational and moral boundaries (i.e. taking care of family, accommodation, mobility, recreation) living before paying taxes.
b. taxes should not be considered as an above and beyond obligation of a citizen; like in every give & take relationship (ie commerce, services, etc.) taxes should be paid to serve certain causes. If those causes are not met by the counter party of this certain deal the citizen should deny paying those taxes.
Regarding the government-citizen relationship, taxes included, start from here and here.
Bests
In the UK, You don’t pay Capital Gains Tax on any gains you make from: betting, lottery or pools winnings.
I don’t think that forex trading is tax free in Germany. Sooner or later you have to pay your taxes. Think about…If you make 500.000 EUR or more in profits yearly How will you support that money?
Hi XGhostDogX …
I live in Germany, too. And … I MUST say, … you should pay the taxes!
I wanted to save the taxes but it’s a really, really, reeeaaaaaally bad idea since the data is exchanged between the banks, brokers, finanzamt, … It’s really not a good idea to “save” the taxes 
And unfortunately these taxes are not 25%. They are 25% + “Solidaritätszuschlag” + possibly church tax. So I must pay almost 30% but this is better than the stress if you pay no taxes and they see it … and they will see it. Perhaps they see it in 5 years but they will see it and they make you pay!
You know “Mr. Höneß” … since him they know about these “bad forex thing” and they check it! 25%, 27%, 30%, ??? … is really much but “normal working people” must pay so much more 
After some research I think I found out, that they tax you depending on your annual income. Which means, IF you make less than 24.000 € a year, you will be taxed less, than if you made more. As a student, I make around 600 € a month with my student job and I make more with Forex. So if your gains outdo your income limits, maybe you should consider leaving the money in the account until January 1st next year. I’ll have to see a tax advisor on that subject. I’ll post any useful information that he gives me here.
Are you from Greece? Your “cheers” indicates british traits 
Could you explain a little more, how the taxation works there and why it’s so bad?
Greece was just my first idea, since Wikipedia says that Greece and Malta are the only countries with 0% taxation on speculative gains like Forex (don’t know the right english term. In Germany we have a certain name for that taxation). I wasn’t fed that information. In fact, I wasn’t fed anything. I study IT related things and taxation laws are not part of my studies (unfortunately). In general, people here just pay what they owe in taxes and leave it be. When I asked around, everyone said something else, even the internet.
I agree on the last part.
Also, about your revolution. Don’t revolt man, I need steady economies and geopolitics so my comdolls rise some more Besides, if we stopped paying taxes all in all, the forex market and the whole world would crash. Don’t do it now, when I am on the winning side.
Once I have THAT money, I think I can afford to pay some taxes.
–
The topic still stands. It’s very interesting to read where and what you all pay in taxes around the world and the nice person who pays taxes in Bangladesh, although he doesn’t need to (kuods!). If you find any loopholes though, post them here. Some information from Greece and Malta would be nice.
XGhostDogX,
Funny you looking for a country with less taxes on your trading profit.
If you would look for countries where there is [B]no[/B] taxation on your trading profits you would find out that just moving a bit to the west and north from Germany would bring you to your Neighbour country “The Netherlands” there are no taxes on profits or deducts on trade losses if you trade your private capital.
If you trade from a company you would have to pay taxes on the profits and get deducts on your losses.
Some information can be found here:
Look at the link: www dot expatax dot nl/kb/article/tax-for-capital-gains-is-it-applicable-in-the-netherlands-and-if-so-in-which-situations-209.html#.U9QcVYCSxqM]Tax for capital gains. Is it applicable in the Netherlands and if so, in which situations?
Basically as long as its sort of asset management you do with your trading and its not your sole income your fine, else you starting to walk a fine line where they could mark it as your professional job. In that case you will be taxed.
Good luck, and the question always is, Is it that hard to pay taxes, how about doing it a lot better your trading so the taxes are just something you don’t miss at all?
You guys are funny, making such a big fuss over 20-odd-% tax rates. Here in Australia, it’s easily 50%+ with all the additional “levies” the government forces you to pay.
Lets just say that I have a number in mind upon which I will gladly relinquish my citizenship.
Don’t get me wrong. I think taxes should be paid. I just happen to also think that there’s nothing wrong with relocating when the tax bill gets too high.
In Australia, as far as I know, if you are a resident, for tax purposes and derive an income from something (like a capital gain, dividends, PAYG, interest, etc.) then it is taxed at your personal marginal tax rate.
Tax on capital gains can have a discount of 50% applied when that investment has been held for longer than 1 year. If you’re shorting over the last couple of months then that capital gain is going to be fully added to your personal income for the year and you may have a tax bill. I suggest seeing an accountant for better advise in your country.
Ok… so I miscalculated, it’s slightly less than 50%.
Top tax rate in AU - 44.9%
Medicare levy - 2%
National Disability Insurance Scheme levy - 0.5%
Deficit levy - 2%
But that is before the invisible taxes we pay in GST, Luxury car tax, Land rates and excise.
The best an accountant can do is set you up with a company/trust entities under which you do your trades, reducing the effective tax rate down to the corporate tax rate of 30% before deductions. It maybe slightly less if you partake in more creative measures such as diverting income through your children, but those are exposing yourself to other risks, and why take those risks, when you can just go somewhere with a legal maximum tax rate of 0-15% for trading derived income?
Better accountants are never the solution. Having to find a better accountant is a symptom that something is wrong.
One should obviously pay taxes, especially when you receive a free education.
The argument that you taught forex to yourself and therefor should be exempt is a little far fetched, seeing as it would have been very unlikely you would had been able to do so had you not learnt to read/write and use basic math.
You should however be critical of how much you pay in taxes. Personally I don’t think the tax in germany is that bad, but I do live in Denmark where I pay 57% personal income tax and on top of that a 180% extra on car purchases (thats right a car in denmark cost almost 3x of other places) and of course 25% VAT on everything + various extra fee’s like paying for public crappy television (3x netflix cost) and extra taxes on anything with fat or sugar in it.
So if I were you, I’d stay in Germany and feel pretty smug about only paying 30% in taxes.
That said, there are ways around it. (also perfectly legal ones) but they aren’t really feasible until you start earning around 500k euro a year. (probably more , since the saving is smaller compared to Denmark).
I think the real issue here is the profit. Taxes are only paid on profits. Moreover, in most countries there are certain thresholds under which there’s no tax. In the UK for instance, it’s around £10k. With statistics saying that around 90% of traders are losers, I think that taxes are the last problem of a forex trader :31:
From Her Majesty’s Revenue and Customs(see the bold bits for the relevant stuff):
CG56105 - Futures: financial futures: financial spread betting
Instead of buying and selling financial futures or options an individual may simply gamble on the future direction of prices or indices. There are a number of spread-betting companies in the UK with which such bets may be placed.
For example, you might choose to bet on movement in the FTSE 100. If the index stands currently at 5400, the company might offer a ‘buy’ price of 5401 and a ‘sell’ price of 5399; the difference is the company’s ‘spread’. Buying with a stake of £5 per point you win £5 for every point the then selling price exceeds 5401 when you close your bet, but lose £5 per point if the index instead has fallen. Similarly, if you bet on the market falling, you win if on closing your bet the then buying price is below 5399, but lose if the market has risen.
The spread-betting company normally requires only a small deposit. Winnings or losses may well exceed this sum.
[B]Though the terminology used in spread betting frequently echoes that of the derivatives market, no assets are acquired or disposed of and no chargeable gains or allowable losses arise from spread betting[/B], see CG12602.
BIM22017 - Meaning of trade: exceptions and alternatives: betting and gambling - the professional gambler
The fact that a taxpayer has a system by which they place their bets, or that they are sufficiently successful to earn a living by gambling does not make their activities a trade.
The case of Graham v Green [1925] 9TC309 concerned a man whose sole means of livelihood came from betting on horses at starting prices. Rowlatt J says at pages 313 and 314:
‘Now we come to betting, pure and simple… the man who bets with the bookmaker, and that is this case. These are mere bets. Each time he puts on his money, at whatever may be the starting price. I do not think he could be said to organise his effort in the same way as a bookmaker organises his. I do not think the subject matter from his point of view is susceptible of it. In effect all he is doing is just what a man does who is a skilful player at cards, who plays every day. He plays today and he plays tomorrow and he plays the next day and he is skilful on each of the three days, more skilful on the whole than the people with whom he plays, and he wins. But I do not think that you can find, in his case, any conception arising in which his individual operations can be said to be merged in the way that particular operations are merged in the conception of a trade. I think all you can say of that man … is that he is addicted to betting. It is extremely difficult to express, but it seems to me that people would say he is addicted to betting, and could not say that his vocation is betting. The subject is involved in great difficulty of language, which I think represents great difficulty of thought. There is no tax on a habit. I do not think ”habitual” or even “systematic” fully describes what is essential in the phrase “trade, adventure, profession or vocation”.’
[B]This shows that having expertise or being systematic (‘studying form’) is not enough to create a trade of being a ‘professional gambler’.[/B]
Some ‘professional gamblers’ do carry on a trade, for example, where they receive appearance money for appearing on television programmes. They are providing a service to a customer (the television production company) for reward. Whether their gambling winnings are proceeds of that trade would depend upon the facts.
BIM56900 - Measuring the profits (particular trades): Financial traders - instruments and shares: contracts for differences and spread betting
Companies
Contracts for differences (CFDs) are defined in CFM50380, and this definition includes financial spread bets. CFDs fall within the definition of derivative contracts for Corporation Tax purposes, so for companies the derivative contracts regime applies in most cases.
It is not usually necessary to identify whether the contract is a spread bet following the case of Morgan Grenfell Ltd v Welwyn Hatfield District Council [1995] 1 All ER 1. This case concerned two local authorities which entered into interest rate swaps with one another facilitated by Morgan Grenfell Ltd. The court considered whether or not the interest rate swaps were a gaming or wagering contract but concluded that where such contracts were entered into by parties or institutions involved in the capital market and the making or receiving of loans, the normal inference would be that such contracts were not gaming or wagering but were commercial or financial transactions.
Individuals and others not within the charge to Corporation Tax
For individuals and others not within the charge to Corporation Tax the position is different. In such cases you will need to examine the contract to see if it is a gambling or wagering one. There is guidance on this at BIM22016. [B]The profits or losses from gambling or wagering contracts are outside the scope of Income Tax (see BIM22015). However, this will not apply if the spread bet is used for a commercial purpose such as a hedge[/B] where the guidance at BIM56880should be followed.
…
As far as I can tell you shouldn’t be taxable on spread bets even if you have a system and no other income. However if you are using a spreadbet as a hedge it is taxable.
Does anyone else in the UK have anymore information on this? I have a feeling that [B]legally[/B](as in if you went to court over it) HMRC can’t charge you income tax on spreadbetting but they don’t mind trying to scare people into paying it.