For tax purposes, forex options and futures contracts are considered IRC Section 1256 contracts, which are subject to a 60/40 tax consideration. In other words, 60% of gains or losses are counted as long-term capital gains or losses, and the remaining 40% is counted as short-term.
Below is How To Avoid Tax Trading forex In South Africa
As a rule of thumb, if you have currency gains, you would benefit (reduce your tax on gains by 12 percent) by opting out of Section 988. If you have losses, however, you may prefer to remain under Section 988’s ordinary loss treatment rather than the less favorable treatment under Section 1256.
Are forex gains taxable in South Africa?
The answer is an unequivocally ‘yes’.
Even when you generated profits in your offshore forex trading accounts, you are obliged to pay income tax on the profits.
How are traders taxed in South Africa?
Any gain or loss you make at the disposal of a share you held as trading stock will be of a revenue nature.
Revenue gains are subject to income tax at your marginal tax rate, which may vary between 18% (but effectively 0% if your tax rebates are taken into account) and 40%, depending on the level of your taxable income.
Is forex trading illegal in South Africa?
Forex is legal in South Africa as long as it does not contravene money laundering laws, and traders must declare any profits to SARS (South African Revenue Service).
Who is the most successful forex trader in South Africa?
Sandile Shezi.
George Van Der Riet.
Ref Wayne.
Jabulani Ngcobo.
Louis Tshakoane.
Simz D’ Mandla.
Louis Tshakoane Junior.
Shaun Benjamin.