What can be better, being taxed as profits in binary options. The course may sound contradictory, eventually no one likes to pay taxes. A tax liability arises if a profit has been made.And to tax a profit is positive, perform as a loss carried forward in the next year. Binary optionsare considered derivatives and thus as an investment. Income from investments is currently in Germany to the flat tax. The fact, however, that most brokers are sitting abroad, has something tempting in itself.
Important facts about the Binary Options Taxes:
- All investment income subject to withholding tax in Germany
- The tax rate is currently at a flat rate 25 percent
- In addition, the solidarity surcharge and any church tax
- There is an annual tax-free allowance of 801 euros per person
1.) What is the withholding tax?
The flat tax was introduced in 2009 and unified the force to date system of taxation of capital gains. As capital gains all the profits are called, which are obtained from invested capital. These include interest on savings accounts, life insurance amounts, dividends Aktienbesitzt and, indeed, profits in trading with binary options or forex. The amount of the withholding tax is at 25 percent of earnings plus. Solidarity surcharge. If necessary, there are the Church tax added. Previously, the different types of investment income were taxed at different rates and the flat tax is intended to make the taxation clearer. For everyone a true annual exempt amount of 801 Euro. Up to this sum the profits must not be taxed. Not in any profits made tax is collected automatically. All unrealized losses on investments can be offset against the profits and only the difference will be taxed. England banks perform capital gains or interest and dividend income directly to the tax authorities from. Falling on binary options taxes can not be accepted that fact, because most foreign broker with the German tax authorities do not cooperate in this form. What could be better than to let the profits be transferred from abroad and to refrain from taxing? It is not recommended that this approach to practice that. The cross-linking of the central banks and the tax authorities is quite advanced in Europe, carried out in some countries relating on capital gains directly by the banks to the German tax authorities. So it is no way around the fact that profits evade taxes by from binary options. For many investors, however, the question of how well these gains must be taxed.
Conclusion: Die withholding tax is levied in Germany on all kinds of savings. These include passbook interest or stock dividends and gains from the trading binary options. The amount of withholding tax is a flat rate 25 percent and added a solidarity surcharge. It is an annual tax-free allowance of 801 euros per person.
2.) How is the taxation handled with brokers?
The action performed with the flat tax by the Broker, depends in trading primarily on where is the head office of the broker. Resident in Germany provider pull the tax rate is usually automatically by the profits from. Foreign brokers left paying taxes to their customers and not keep a 25 percent. If the tax included automatically, it must be removed at the next tax return and stand up to that the amounts for trading available. Anyone who is not sure how the own broker deals with the taxation, can read the terms and conditions of the supplier and, if a binary options provider comparison make. Who wants to be on the safe side always, should consult a tax advisor and get detailed information about all the rules and laws that there are to know this.
Conclusion: Who is binary options, should be thoroughly informed about how the broker handles the taxation of profits. In general, the Germany-based companies prefer the flat tax equal with a foreign brokerage and left the removal of the tax to its customers.
3.) This is important around the tax return
Investment income must be listed in Annex KAP. Earlier, it was still possible to offset losses from equity transactions with interest income of deposit account, this is no longer permitted. It may be netted from a plant genus only nor the gains and losses. To tax the profits of binary options without paying but too many taxes, it should be accompanied by the account statements of the trading account of the tax return. The gains are offset against possible losses, 25 percent withholding tax will apply to the balance then withheld. If the case occurred, that a fiscal year ending in negative territory, this decline can be credited as a loss carried forward to the coming year. The gains of the following year are then reduced by this loss carryforward. For an example: In the current year the earnings were 2,000 euros, the losses but 2,500 euros. The loss the day before for the following year amounts to 500 euros.Next year, the gains outweigh the losses to 1,500 euros. Excluding the loss carryforward of 500 remains a taxable income of 1,000 euros, to the 25 per cent withholding tax, ie 250 euros incurred taxes.
Conclusion: In the tax return, all investment income under the plant «KAP» listed. It is not possible to offset gains or losses in investment income of different asset classes with each other and if a fiscal year ending in negative territory, the negative amount can be taken in the new tax year.