Binary options and taxes
Binary options and taxation. What should you know?
Nowadays there is a real boom in the binary options market. Its popularity among traders is growing fast, catching up with Forex, primary platforms and share market. The secret of this popularity hides in the simplicity of trading in this market and of course in the possibility to earn. So, let’s speak about earnings and taxes payment.
We would like to say that nowadays there is a juristic duality of the approach to this question. From the one hand there is a internal revenue code, where they say about necessary payment 13% tax from the income of individual people. That is, you got the income so, please, pay a tax. From the other hand, there is a solution of Finance Ministry, dated by 2009, where they say that a trader must solve all questions about taxation of getting income by himself. It means the possibility of any trader not to pay a tax. Mishmash with our legislation leads to the situation when experienced lawyers can’t answer the question whether a binary options trader must pay a tax or not. For example, in the USA and countries of European Union have this question regulated, and a trader understands what he must do. But we don’t have such a law yet, that’s why let’s try to clear out the question by ourselves.
How can you not pay the tax from the profits from binary options?
So, you decided, that the state can live without your money. Can you not pay the tax? Yes, you can, more than that, you can do it legally. There several ways.
If you put all your profit, got from binary options trading, in electronic payment system and don’t cash it, the chance to be caught for taxes non-payment is zero. Realizing the purchase and payment on the Internet, you can not worry that internal revenue service will be interested in you. Electronic systems of payments are practically not monitored by this service and the legislatively the owner of such system can refuse fiscal authority to give information about the money in their clients purses. As for foreign payment system, it is not possible to get to your Russian profits. However such way is applied, if the earning is not so big and doesn’t exceed 100-200$.
If the earning is higher, there is a necessity to cash money. It doesn’t matter whether you do it on your bank card or in the bank, but a bank system appears in such situation. If you ash constantly the large sum of money, they will have to tell about it to tax inspectorate. Having analyzed the information on traders forums, we camre to the conclusion, that sums to 500$ a month are not interesting for banks. If you are going to cash more, there is one more variant.
If a tax inspectorate knocks at your door and they are interested where you get 1000-2000$ every month from, you can answer “I earned it in binary options”. There are no juristic reasons to lay a tax such kind of earning nowadays. Of course, the legal proceedings are possible, and it means nerves, money, that’s why are you ready to it – decide yourself.
Pay tax or binary options without a risk
If you decide to save your sleep and nerves or you have very strong feeling of civic duty, the question will arise: how to pay tax from the profit and what can you do to minimize its size?
At first, you should understand, that you pay 13% tax from the sum, is different because of deposited and got broker’s money on his account. For example, if you deposited 1000$ on your broker’s account, but got 800 $, you must not pay the tax. More than that, these 200 dollars of negative balance will go to the next period, and you will have to count with them.
To make your life easier, it’s better to trust tax payment professionals. To do it you should choose a binary options trader, who counts the sum of profit of traders and pays taxes on the account. You can find this information about this service, which brokers offer, in official sites. Not long searching on the ten such brokers, that’s why it won’t be difficult for a trader to find them. Internet let find more than . Probably, a broker, you trade with, is one of them. Also a bank, you use to cash money, can pay your tax. You need to go to the bank and sign a contract for this service.
The variant of minimizing the percent of profit tax can be registration on you a private enterprise. After this procedure, privileged tax system can be formed. It is 6% tax, there is no VAT in this situation. The report about taxes is done once a year. This variant lets you save the half of the sum.
Of course, to pay or not to pay taxes to your state everyone decide himself. You can not pay, especially, when we are speaking about not big sums. Such variant in Europe and America would call misunderstanding and bewilderment, but these are peculiarities of out mentality. However, if you came to the market of binary options for a long time, this variant of tax payment should be changed. One day fiscal system will get interested in the source of your earning and ask why you don’t pay taxes. That’s why it is not worth waiting, choose one of the variants to pay tax and have a good sleep! Even legislatively unfixed base doesn’t relieve the responsibility to carry out your duty to the State.