I'm currently doing a bit of trading in South Africa, on the JSE. I'm increasing the amounts allocated to trading, as I increase my skill, with the aim of becoming a full time trader in about 2 years.
However, I recently had to pay a large amount of tax, in part due to trading, and in the process I learned that trading is classified as normal income tax, not Capital Gains Tax. This means I had to pay almost 40% tax. This took a massive amount of my trading profits.
So after all the expenses, time, effort, risk, saving, sacrifices etc. I still had to pay a massive amount of tax. In the end I'm not convinced it was worth it.
So what I'd like to know is, are there any current traders from South Africa here, and how do you find trading as a South African, especially related to the tax situation? Are there ways to, legally, reduce this tax, and if so how? Or do you just take the hit, and still feel it's worth it?
However, I recently had to pay a large amount of tax, in part due to trading, and in the process I learned that trading is classified as normal income tax, not Capital Gains Tax. This means I had to pay almost 40% tax. This took a massive amount of my trading profits.
So after all the expenses, time, effort, risk, saving, sacrifices etc. I still had to pay a massive amount of tax. In the end I'm not convinced it was worth it.
So what I'd like to know is, are there any current traders from South Africa here, and how do you find trading as a South African, especially related to the tax situation? Are there ways to, legally, reduce this tax, and if so how? Or do you just take the hit, and still feel it's worth it?
