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Online Share Trading

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Tax advise

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PLayer
Frequent Contributor
Been new on this need some advice: When does one get counted a day trader by SARS and what is the tax implication? If one does 4 to 5 trade a month what is the tax implication
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6 REPLIES 6
CHATTYCHAT
Super Contributor
As soon as you do not keep shares bought on the JSE for at least 3 years, you'll be taxed ordinarily.
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Not applicable
Correct, there are two options in SARS eyes, which is Traders and Investors. Traders sell shares within 3years after purchase. Investors hold shares for longer than 3 years. Traders profits/losses are added to their ordinary income. So for example, if you are in the 30% tax bracket, the profits from trading will be added to your ordinary income and you could move into the next tax bracket. If you are an investor, you are taxed at 25% of your marginal tax rate, ie. If you are in the 40% bracket, you will pay 10% Capital Gains Tax. Dividends are tax free according to current legislation.
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Not applicable
so are we taxed automatically off our normal income together with income from trading added on, or are we supposed declare profits sperately and then pay tax to the receiver on that? being a trader that is
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striker
Super Contributor
Question is who has made any profit from trading in the past year ??
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striker
Super Contributor
My losses exceed profits by some margin.
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chas
Regular Contributor
Say you classified a day trader with regard to trading shares - and in the course of the year you sell some Unit Trusts that you have owned for more than three years are the UT's also taxed at your marginal tax rate?
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