Binary Options Taxes in South Africa

Binary Options Taxes in South Africa

How can South African traders report income to tax authorities from binary options?

This question can be found often among binary options traders and in this guide, we will try to provide some guidelines for traders in South Africa.

Our readers should keep in mind that we are trying to get the latest reports on this topic by researching all available data.

This is done in order to provide South African traders valid information about binary options taxes in South Africa.

BinaryTrading.co.za Is Not a Tax Adviser

On our website, we don’t provide tax advice nor we are licensed to do so.

We are not specialists on taxes. Our goal is to research about binary options taxes in South Africa and assist traders when possible.

Tax Authorities Mostly Indecisive about Binary Options

As a new innovative way to participate on financial markets, traders have opportunity to learn all tricks of binary options trading and how to be a successful trader. With the use of guide tutorials and different strategies, traders can achieve excellent trading results.

Therefore, it is actually somewhat odd that there isn’t more information about binary options taxes in South Africa and globally also.

Regulatory Frameworks Are Too Late

What do we mean by this?

Brokerage companies appear from one day to the next, however regulatory bodies are often too late in providing frameworks which could strengthen the financial market. It also happens that these authorities are sometimes baffled by what needs to be done to ensure safe trading with binary options.

In some cases, they don’t have the capacity or they head in a completely other direction and impose way too many restrictions, which is also not so good for binary options industry and those in it.

Tax Issues When Withdrawing Funds

This also comes as one of tax issues when thinking about withdrawing funds from the trading account. This has to be done according to anti-money laundering framework. More details about it, can be found in our scam article.

Generally speaking, traders who invest in binary options have to pay taxes on income which came from binary options trading. However, traders should know that tax treatment differs from one country to another.

Most brokers have their business outside customer’s country of tax residence. This fact complicates things even more than needed.

How to Report Your Binary Options Trading Income?

In some cases in binary industry, it comes to the confusion since countries worldwide see binary options in a different way. Some see it as type of gambling income, while others as a type of capital income.

This confusion, unfortunately influences on how income is earned and of course, how it would be taxed.

Traders should always keep in mind currency conversions, when stating income amount for taxing. This is relevant since binary options trading is done online. Income will be withdrawn from another country to the trader’s bank account.

Traders should check and confirm how this influences the way traders report their taxes. This can be done by determining an exchange rate since taxes are paid in national currencies.

Binary Options Trading in South Africa

With a population of 55 million people, South Africa is indeed a large market. Therefore, it shouldn’t come as surprise why there is an increasing number of people, interested in binary options trading.

Below, traders can find more detailed information about binary options taxes in South Africa.

To traders in South Africa who are wondering, yes, trading binary options is legal in South Africa. On South African market, there is a wide range of brokers who offer trading services. Some of them are regulated, while other are not.

Our research showed how it is not possible for domestic brokers (if any) to offer trading platforms in South Africa, however offshore brokers are allowed to participate on South African market. By offshore brokers, we mean brokers registered outside South Africa.

Trading with Trustworthy Binary Brokers in South Africa

On South African market, there is a variety of brokers who offer secure and protected trading platforms where traders don’t have to worry about safety of their funds. Brokers, such as AnyOptionBanc de Binary, 24option, IQ Option and many more are available for South African traders.

These brokers are reviewed and have reputation of safe binary brokers, which is very important in binary industry. To their registered traders, they offer a set of different useful trading instruments and services. It is possible to trade binary options on mobile application, just as it is possible to practice trading on demo account.

Ultimate goal is to ensure traders in South Africa safe trading and opportunity to maximize profit doing exactly that.

Binary Options Taxes in South Africa

Each trader who invests in binary options and earns money from it, should pay tax on this income. As stated above, binary options taxes in South Africa should be carefully done.

To get exact information under which category to put it, we recommend traders to read taxation policy in South Africa.

Binary options taxes in South Africa should be filed together with other income from the past year. It is necessary to determine first overall income per year and then to know in which category it fits.

In order to pay taxes in South Africa, a specific documentation needs to be delivered. It requires from traders to fill in Application for Registration

We recommend our readers to consult about binary options taxes in South Africa with a tax specialist, who can provide thorough information about taxes.

* Legal Disclaimer: BinaryTrading.co.za is not an official site of Tax Administration and it is not authorized to provide any tax advices for South Africa. This article is informative only and we advise to contact tax specialist before filing tax application.