Tax on active traders in Germany

[Maverick2608]

In almost all countries active traders defined in terms of volume, frequency of trades, education, previous experience etc. are taxed as a business at the normal income tax rate as opposed to the capital gains tax rate.

Sweden is to my knowledge the only exception among developed countries (except for zero tax jurisdictions obviously).

However, recently a tax advisor (not specialised in this area) told me that the same applies to Germany. That is, long and short stock trading in Germany is taxed at the capital gains tax rate irrespective of volume, frequency etc.

I doubt it.

Anyone?

 

[d08]

In almost all countries active traders defined in terms of volume, frequency of trades, education, previous experience etc. are taxed as a business at the normal income tax rate as opposed to the capital gains tax rate.

Not true at all, where did you get this? Estonia doesn't differentiate, neither does Latvia to my knowledge. Asian countries mostly don't do this either. Frequency and experience are so arbitrary, education even more so.

 

[Scataphagos]

In almost all countries active traders defined in terms of volume, frequency of trades, education, previous experience etc. are taxed as a business at the normal income tax rate as opposed to the capital gains tax rate.

Sweden is to my knowledge the only exception among developed countries (except for zero tax jurisdictions obviously).

However, recently a tax advisor (not specialised in this area) told me that the same applies to Germany. That is, long and short stock trading in Germany is taxed at the capital gains tax rate irrespective of volume, frequency etc.

I doubt it.

Anyone?

In America the tax rate is determined by holding period. If trade held 1 year, capital gains treatment. If less than 1 year, ordinary income.

 

[Maverick2608]

In America the tax rate is determined by holding period. If trade held 1 year, capital gains treatment. If less than 1 year, ordinary income.

Correct.

 

[Maverick2608]

Not true at all, where did you get this? Estonia doesn't differentiate, neither does Latvia to my knowledge. Asian countries mostly don't do this either. Frequency and experience are so arbitrary, education even more so.

Do you believe Singapore does not differentiate?

 

[Maverick2608]

Not true at all, where did you get this? Estonia doesn't differentiate, neither does Latvia to my knowledge. Asian countries mostly don't do this either. Frequency and experience are so arbitrary, education even more so.

In tax law arbitrary = disadvantage for you and me.

 

[d08]

Do you believe Singapore does not differentiate?

I don't know about Singapore specifically.

 

[Scataphagos]

In tax law arbitrary = disadvantage for you and me.

The tax law in the USA is not about "fairness". It's grossly unfair and used as a political tool.

The only fair tax is a flat tax. But we'll never see that as it wouldn't be subject to manipulation for political gain.

 

[Maverick2608]

I don't know about Singapore specifically.

Ok, which Asian country/countries do you know does not differentiate?

 

[globalarbtrader]

In almost all countries active traders defined in terms of volume, frequency of trades, education, previous experience etc. are taxed as a business at the normal income tax rate as opposed to the capital gains tax rate.

Sweden is to my knowledge the only exception among developed countries (except for zero tax jurisdictions obviously).

However, recently a tax advisor (not specialised in this area) told me that the same applies to Germany. That is, long and short stock trading in Germany is taxed at the capital gains tax rate irrespective of volume, frequency etc.

I doubt it.

Anyone?

No such differentiation exists in the UK either. Sounds to me like a typical 'what goes for the US, surely goes for the world' attitude.

GAT