If you are a bona fide trader and a law-abiding citizen of your country, you have already thought about the need to declare your income from earnings on trading platforms. At the same time, there are no clear regulations in the law that would oblige traders to pay taxes on income from options.
Logically speaking, we come to the conclusion that traders are real entrepreneurs, who should also pay tax to the state. You and I are honest and decent citizens, we pay taxes on all official income. But we also strive to declare, not official ones, in order to earn and develop with a calm conscience without breaking the law. But today even competent lawyers cannot give a clear answer to questions about payment of taxes on profit on options.
Trying to find out for ourselves, we understand that it makes no sense to pay to the state those duties, which are not clearly formulated in the formation of market relations. And the trading companies themselves are not interested in this issue to solve the problem. As a matter of fact, a trading company can simply take a certain percentage of traders from each positive deal to pay the duty to the state treasury. But if the state does not have the tools to perform these operations, then why should the platform worry about it?
The Tax Code has an article that prescribes that citizens must declare not only their official income, but also additional earnings, from which the tax will also be paid. From this point of view, trading can be attributed to additional earnings. But the state system considers the taxable taxes from trading on investment sites in its own way.
Is it necessary to pay taxes in this situation?
Fair taxpayers show personal initiative to solve an important issue and consult with the state structures regarding the payment of taxes from trading. This is where the biggest disagreements begin. When receiving a consultation, traders are given an unambiguous answer that all income must be declared, so it is necessary to take forms for payment of taxes and fill in. But in reality, the employees of the tax office do not understand how to properly register traders and how much to withdraw interest from them.
The same story happens in the circle of traders. Some believe that it is necessary to pay contributions, while others have a completely opposite opinion. This is due to the fact that when withdrawing funds less than 10 thousand dollars, banks are not obliged to inform the tax authorities about the operation. And the state does not know about such income, so it does not require anything. In this situation, most traders do not want to pay taxes with winnings, about which nothing is prescribed in the law.
But law-abiding citizens are trying to deal with this situation, because they are worried not only about their future, but also about their children, who will have to live in their country. In order for the tax inspectorate not to have any further questions about where an ordinary worker’s property comes from, it is necessary to take care of declaring your income in advance. Especially considering that a luxury tax will be introduced in Russia. For this purpose, bona fide traders are already trying to pay the state duty, preserving all necessary receipts in advance.
How to properly tax a trader
If you have decided to pay taxes from option platforms, there are some nuances that must be taken into account. The main thing here is to clearly define the amount from which the tax will be calculated. In fact, this is the difference between the money on deposit and the winnings that come to the bank account. You should remember that the tax is paid if the trader has withdrawn less money during the year than deposited it to the company account.
In addition, the remaining funds will be carried over to the next term, where they will also be taken into account to calculate the tax payment. It is best to open an additional bank account, which will be used to withdraw profits directly from the trader’s sites. In the declaration this data is recorded in the column “other income” in the amount of 13%, but the source of funds is not specified.
I believe that every trader should make a personal decision whether to pay taxes on his winnings or not. But for those professionals who raise huge profits in trading, I would advise to declare their income. It is you who can be of serious interest to the tax inspectorate, which will overlook traders with a small income. If the state services find you serious violations, the fine will be considered a small penalty. In any case, given the possibility of prospects and growth of your financial well-being, it is better to take care of preserving your status in advance on a legal basis.