Forex Trading

[J96949]

Do I need to pay income tax for profits earned from Forex Trading?

[Observer]

ur doing full or part time?

[Vid]

The answer is "yes".

[J96949]

Part time

[Observer]

as far as i know, part time dun have to....similar to stocks..

 

i stand corrected

[J96949]

THanks Bro

[Observer]

don't thank me too fast, listen to what others say...i may be wrong haha...

 

let's hear what vtim has to say...

 

all the best!!!

[Freestylers09]

unless u hold taxable dividends in shares

 

other than that no need

 

just ask a simple qn...u lost,who pay for u?gahment?if yes i dun mind..haha!

[Agalvilaku]

i guess you still have to pay the tax. My company has given me some RSU (restricted stock units) i.e for free. But, i still have to pay tax for it and paid last year. Tricky part is that, the tax is calculated based on the vesting date, i.e allotment date not based on the sale date. Let us say, company allocates 1 share @ 2 dollar, the tax is computed for 2 dollar. If i sell it for 10 dollar, rest 8 dollar is still not taxable, but if the share become 50 cents, i still have to pay the tax for 2 dollar .

 

I haven't done any forex trading till today, but, don't think it would be any different from stock trading.

[Agalvilaku]

unless u hold taxable dividends in shares

 

other than that no need

 

just ask a simple qn...u lost,who pay for u?gahment?if yes i dun mind..haha!

Not sure about Singapore, in some countries, you can carry forward your losses for next two years and offset that loss with your profit. So, it depends on each market and the regulations.

[Freestylers09]

Here

 

yours is different issue,company allocation

 

to judge as income for gains in shares,is very difficult to determine

 

"Gains from sale of shares & financial instruments

Generally, profits or losses derived from the buying and selling of shares or other financial instruments on your own account are viewed as personal investments.

 

Capital gains are not subject to tax. If you buy and sell shares or other financial instruments at a profit, the profit is not subject to tax."

 

"When is it taxable

To determine whether an individual is trading, factors such as the frequency and volume of transactions, the interval between the purchase and sale, and the manner of financing the purchase of shares, will be taken into consideration.

 

The three circumstances factors above alone do not determine whether the gains are taxable."

 

 

Edited November 30, 2010 by Freestylers09

[Sunlight]

Do I need to pay income tax for profits earned from Forex Trading?

Bro u make a lot issit??

 

[J96949]

I do not want to use the word 'alot'. HAHA

[Agalvilaku]

Here

 

yours is different issue,company allocation

 

to judge as income for gains in shares,is very difficult to determine

 

"Gains from sale of shares & financial instruments

Generally, profits or losses derived from the buying and selling of shares or other financial instruments on your own account are viewed as personal investments.

 

Capital gains are not subject to tax. If you buy and sell shares or other financial instruments at a profit, the profit is not subject to tax."

 

"When is it taxable

To determine whether an individual is trading, factors such as the frequency and volume of transactions, the interval between the purchase and sale, and the manner of financing the purchase of shares, will be taken into consideration.

 

The three circumstances factors above alone do not determine whether the gains are taxable."

How do define an investment as capital investment? Some countries define it as investment made for at least 1 year is capital any thing lesser than that considered as trading. You buy something and sell with in a month, shall it be still counted as capital gain? I am a noob when it comes to singapore stock trading or its tax regulations on that part. But, i have investment elsewhere where the tax and term "capital gain" and short term gain differs a lot.

[Davidklt]

It is required by law for company to report any monetary benefits given to employees but you do not need to report your personal investment to IRAS.

 

i guess you still have to pay the tax. My company has given me some RSU (restricted stock units) i.e for free. But, i still have to pay tax for it and paid last year. Tricky part is that, the tax is calculated based on the vesting date, i.e allotment date not based on the sale date. Let us say, company allocates 1 share @ 2 dollar, the tax is computed for 2 dollar. If i sell it for 10 dollar, rest 8 dollar is still not taxable, but if the share become 50 cents, i still have to pay the tax for 2 dollar .

 

I haven't done any forex trading till today, but, don't think it would be any different from stock trading.

 

[Throttle2]

NO......

[Samnet]

no need pay. forex is like buying 4D. winnings are not taxable.

they already taxed singapore pools.

 

[Good-Carbuyer]

Do I need to pay income tax for profits earned from Forex Trading?

I was told capital gain is not taxable just like Foreign Currency Fixed Deposit (only the interest, not the FX gain taxed). However, if you got no other income/employment, how to justify this is not income to be taxed? I believe part-time not taxable since it is capital gain. Full time is simply income to be taxed (I do not mind if I can make enough to be tax when I get started)

Edited November 30, 2010 by Good-Carbuyer