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Forex and taxation
If You are in the process of work at Forex will be able to achieve tangible financial results, You will be presented with a dilemma – to pay or not to pay tax on such income. Unfortunately, in Russia it still is no clear and unambiguous legislative mechanism. But if You want to legalize their income and want to remain law-abiding and socially responsible citizen, to pay taxes You still have.
First, refer to the original source, here is an excerpt from the explanatory letter to the tax authorities upon the subject:
LETTER dated 4 February 2009 N 03-04-05-01/41
"The Department of tax and customs tariff policy considered the letter on taxation of the incomes received from operations on Forex market, and in accordance with article 34.2 of the Tax code of the Russian Federation (hereinafter - the Code) explained the following. According to paragraph 1 of article 209 of the Code the object of taxation for physical persons who are tax residents of the Russian Federation shall be the income derived by them from sources in the Russian Federation and (or) from sources outside the Russian Federation. In addition, article 210 of the Code provides that in determining the tax base includes all income the taxpayer received by it both in monetary, and in natural forms, or the right to dispose of which it has arisen, and also incomes in the form of material benefit defined according to article 212 of the Code. Thus, the income received by the taxpayer from transactions on the Forex market, is subject to taxation by the tax to incomes of physical persons on General grounds by applying the rate specified in clause 1, article 224 of this Code."
Deputy Director of the Department of tax and customs tariff policy N..KOMOVA
Also specify that this list is not mandatory, does not contain direct provisions of the tax legislation and remains a recommendation, i.e. when the hearing on this issue, it may not be considered as evidence of the parties.
And yet, how then to calculate the tax amount? In principle, personal income tax rate in the Russian Federation is 13 %.
But here a few options:
1) Independently – that is, when withdrawal of the profits to your Bank account during the tax year, You yourself will sum this income and make it at the rate of 13 % to Your annual tax return. But in this case the correctness of Your calculation can be challenged by the tax officials, the competence and impartiality of which may be at the "top".Because under certain circumstances You will be quite difficult to prove that You are not only earning money, but losing during the operations on Forex as well as confirming facts and dimensions initial and subsequent deposits for their Deposit.
2) many of the major Russian dealing centers (DC) or banks that provide their services for those who want to trade Forex, at the same time are "tax agents". It is quite convenient for their customers.
Income (or loss) as a result of transactions with monetary financial instruments will be determined as the sum of income received on the totality of transactions made during the reporting tax period, minus the total of losses for the same operations. Also deducted from the tax base is actually all implemented, and documented payments that were necessary for the conclusion, execution and early termination of contracts.
The calculation and payment of the entire amount of tax at the end of the reporting tax period, provides funds from the customer directly or the broker, or Bank.
If this is not possible, the DC or the Bank after the deadline for submission of the Declaration reserves the right to notify relevant authorities about impossibility of deduction of the tax at the expense of the particular taxpayer and the amount of outstanding debt. The obligation to pay tax in this case is in the customers.
By the way, documented recommendations in terms of taxes on income derived in the Forex market, the broker or Bank in advance to provide to your client. The very same client submits a Declaration to the relevant tax authority.
Note: personal income tax rate for individuals who are not residents of the Russian Federation, is not a 13 and 30 %.
3) Some experts in the field of taxation suggest that such a way to minimize costs – registration as individual entrepreneur, which uses the simplified taxation system. In this case, the tax rate will be only 6% reporting it is necessary to pass once a year, VAT, and importantly, the review by the tax authorities are, as a rule, "without incident". However, even in the absence of income You will have to pay minimum contributions to the pension Fund. But in all other respects this scheme is similar to the ideal.
However, to register as an individual entrepreneur is only when You are to withdraw funds gained through working on Forex. First You have to get the status of STS, and then proceed with money transfer to your Bank account.
4) A DC are registered in offshore zones, and, of course, will not inform the tax authorities about the income. You can withdraw your funds in the form of electronic money (WebMoney and others), using them to pay for goods and services. In not very significant amounts of payments they are unlikely to be interested in "competent" bodies. In addition, there are exchange structures to avoid paying tax when transferring electronic money in any other convenient form.
I hope that with the above recommendations, You are able to decide how You "sleep".
|Category: Forex | Added by: (29.10.2017)