Hi there! I m relatively new to forex trading and trading in genereal. I m currently living in Australia, and my question is regarding ‘‘efficient’’ ways to save taxes when you are making money on virtual markets. Actually I m expecting the topic to be pretty complex to be answered in a single post, I am more looking for free tax education websites but I would definitly appreciate anyone sharing their knowledge about the topic. Thanks in advance
I would avoid taking advice on here, mainly since it will be specific to your country, pay to speak to a qualified tax accountant. I know in the UK at least there are two ways we get around it. Number one is to set yourself up as a limited company, this way you can pay for expenses, such as a company car, offices, meals out, business trips all tax-free then pay yourself the minimum wage and reinvest the returns. Effectively you don’t want to make a profit since that’s what taxes are paid on. Alternatively, which is only applicable if you’re making a small fortune is offshore accounts in tax havens, register your company in a tax haven and pay nothing on your profit’s, you’ll have to look into local laws regarding transferring money to your aussy account though. again speak to an accountant.
I think you’d want to rephrase your title to get the attention of Babypips members who are also Aussies. Maybe something like “Tax Efficiency Basics for FX Traders in Australia” or something. Just a thought. (Can’t help you though as I am not from AUS)