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.
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
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?