Contrary to popular Forex traders in South Africa are required to pay tax under the income tax laws of South Africa. Contact SARS for more information about paying Forex taxes in South Africa. It is a widely understood misconception that all Forex earnings are tax free all around the world. In many countries this is not the case, however many Forex course stipulate otherwise. There could be many reasons for Forex education to to push such narratives. It might be to entice new traders to start trading on the market, it might for traders to purchase the course or they might just be pushing false narratives. Brokers could also be behind such rumors, as they profit off of traders losing trades and making money.
Income tax is not a new concept for people who earn an income in South Africa. It is a series of brackets were earners fall if they meet the earning requirements. Traders under the age of 65, for example, will not be required to pay tax until their total taxable income surpasses R75,750 per year (an average of R6,312.50 per month). A trader who is the sole member of a closed corporation (CC), for example, might legally decrease his or her tax burden by combining his or her individual tax threshold with the tax threshold of his or her close corporation. This is accomplished by the close corporation employing' the individual. This boosts the annual tax threshold for traders from R75,750 to R151,500. The merchant will only pay income tax if his profits surpass R151,500 per year in this situation. An individual may only use the 'tax threshold benefit' of one close corporation.
Please find the tax brackets and other tax information above.
It is therefore, extremely important for traders in South Africa to pay tax and comply with local tax laws. Not doing so could lead to breaking tax laws and have much worse implications than doing so in the first place. Outstanding tax payments could result in fines or increase in tax prices. It is also imperative to spread the word and de-bunk the notion that traders do not pay tax on their income.
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