Setting yourself up in Fx as a Business

Hi all,
I am wondering if anyone could give any advice at all.
I work at a full time job and trade during the evenings here in Australia. Currently on a demo account, but very soon progressing to a small live account.
Just suppose all goes well and I make this a bit of a success for myself (fingers crossed), I am wondering what options there are in Australia for setting yourself up properly with trading Fx.
What i mean by that is - Have people set themselves up as businesses/company’s so any income from their fx trading is not added on to their day job salary, and treated then as a separate entity, paying company tax etc??

I go to my tax man in a month to do my tax return and plan to ask him, but I wondered if there were any Australians who have made the move successfully in forex and set themselves up in an efficient way???

Thanks Guys

Tassiefx

Tax is a big problem if you start to make real money at this. No expert in Australian revenue services but expect it to be much the same as the developed west. Tymen would have been your first port of call, but sadly no longer with us. If tax becomes a problem, look to other countries and set up a company there. Cayman’s is zero tax, but you need to be a big player. Muaritious is good at only 15% tax both company and personal. Suprisingly, Bulgaria is a big up and coming tax haven at only 10% company and personal tax… less with incentives. Get yourself a very good tax accountant/ attorney. :stuck_out_tongue:

EDIT: You also get a very hefty 6% interest on deposits! :30:

Hey Carter,

Just a quick question about moving a business to another country to avoid the hefty UK tax regulations. Would you simply have to register your business in say Muaritous, or would you have to physically work in that location for it to be considered legitimate.

I have no plan as such in doing this, but it seems interesting as far as knowledge goes.
:o

Thanks

You can legitmately set up any company anywhere worldwide no problem and as a seperate legal entity it will be taxed at the buisness rate of that country. Paying yourself an income from that company gets complicated though. As a general rule, your taxed on your worldwide income in the country your deemed to be domestiled in. So if you plan on becoming rich it pays to move around… say 3-4 months in each tax durisdiction… most countries deem you taxable if you reside within their borders for more than 190 days in any one year. So you stay longest in any one year in the least taxed country, luckily its not too much of a strain living on Mauritius… white sand coral beaches and warm blue sea! LOL If you must return to the UK… just don’t stay more than 190 days! :59:

I think you’ll find it’s 90 days, not 190.

Even less of a reason to come to the UK then? LOL!!!

The tax that your saving pays for a nice 270 day holiday, I can see where this is going to end up, LOL.

Better than that… set up a company in your desired retirement location. It gets taxed at that countries rate. If your in the UK you get your shirt stripped off your back when drawing a wage. But as soon as you retire the remaining pot is yours to do as you like at that tax rate! My kind of pension plan! :smiley: