Eish Tax

[#1]

I still have not been able to find someone that can give me a very definitive answer on the tax issues when trading .. I really dont want blow the litle profit I made during the last month (in this sideways market) on an expensive tax consult .. Can anybody help ..say trading once a month is capital gain at10% ??

[#2]

There is a tax guide under "my account" then "tax statements" I don't know exactly what is included in it but maybe it could help

[#3]

Nope, if you make regular short term trades as apposed to trade and hold for a longer time frame you are deemed to be a trader. As such any profits or losses are exposed to normal PAYE taxation rates. That been said one is entitled to set off against your profit any expenses deemed incurred deemed in the production of income. ie profit less charges, subscriptions, computer costs etc equals taxable earnings. It will get slightly more complicated if you earn a salary as well.

[#4]

Salary, whats that?

[#5]

Just go to the SARS website and you will find a detailed and easily understandable " Tax Guide for Share owners "

[#6]

Thanks Christofer

[#7]

Thanks RM

[#8]

Thanks

[olilau]

castro, i'll make it simple for you, there are a few things that determine your intent, but basically, capital gain is only applicable when you make a long term INVESTMENT. buying shares with the intention of selling them to make a profit is REVENUE in nature and will be taxed at your marginal rate.

[CHATTYCHAT]

The tax guide referred to (issued by SARS theselves) has one basic rule - when buying on the listed market, keep for 3 years, else you're a trader and taxed on profit/loss as you go along. "Intention" is second best reasoning after 3 years, especially if you've been trading all along. Even after 3 years without trading you may be regarded as a trader, but as said: the intention factor is than looked upon. The onus is on the taxpayer to bail himself out off the dilemma.

[#11]

Thanks very much .

[THRESHOLD]

The 3 year rule is used as SARS's way of divining your intention. The intention rule (ipse dixit) is still the dominant fator in deciding the nature of a transaction. Your actions are used to establish your true intent - hence the "rules."

[olilau]

guys and gals, just on a small point of order, everyone keeps on throwing around the term "trader". SARS does not see anyone as a trader unless you insist on defining yourself as such. the concept is a little misleading for beginners as they may assume "well, i am not a trader, i dont do this professionally" etc. the distinction is not one of being a trader or not a trader, the distinction is whether the intent of the transaction is one of "revenue in nature" or one of "capital in nature". you can be trader by profession but in fact still bring to account certain shares bought for yourself as a capital transaction.