German derivatives traders shocked by new tax law

Discussion in 'Trading' started by Hittfeld, Jan 19, 2020.

  1. tiddlywinks

    tiddlywinks

    Link(s)??
     
    #11     Jan 19, 2020
  2. MichalTr

    MichalTr

    hhahahaah Germany ... with France and Scandinavia they are biggest fans of socialism :) Money for financing life of "poor refuges" and all ppl who don't want to put effort need to be taken from someone... preferably from people who have devoted time and money to development and want to break above average.
     
    #12     Jan 19, 2020
    Bobiz, zdreg, korzes and 1 other person like this.
  3. guru

    guru


    a) Any news sources/links related to this?

    b) Not sure how forcing traders to speculate professionally would diminish speculation. So maybe the goal is to generate tax revenues? (which obviously won’t work when people stop trading)

    c) Can those politicians be sued for deception and defrauding tax payers? The way it was done looks like it was purposely hidden from tax payers, which could meet the definition of fraud.
     
    #13     Jan 19, 2020
    tomas262 likes this.
  4. To create a legal entity, such as a LLC, in Germany is a no brainer and costs almost nothing. Trading profits are taxfree and only 5% are added to taxable income, making the actual tax about 1.5%(!).
    While losses can be offset against profits they cannot be carried forward. So if your losses exceed your gains for a given tax year youre f*cked.
     
    #14     Jan 19, 2020
  5. Hittfeld

    Hittfeld

    No, only for german tax residents.

    Links -only german language-



    Links to german legislative papers are within the youtube vids.
     
    #15     Jan 19, 2020
  6. Hittfeld

    Hittfeld

    Yeah, but the aministrative work connected with the governance of a german legal entity is horrendous
     
    #16     Jan 19, 2020
  7. Hittfeld

    Hittfeld

    a.) Links are on youtube. Or in german WELT newspaper (behind paywall)-
    b.) Yes to replace FTT, which was declined by other EU member states
    c.) Unfortunately not - deception has been developed to a higher form of art by most politicians and especially female ones in Germany. This last sentence might bring me to jail according to new german legislation.
     
    #17     Jan 19, 2020
    guru likes this.
  8. Hittfeld

    Hittfeld

    This is most interesting, especially as I have different figures from 2005 -2015:

    Basic costs fo structure (running a GmbH vs. private accounts): Forming corporation: 3000 USD
    Running corporation: Memberships, accounting etc 4000 USD p.a.
    Trading related additional costs: Professional Trading Fees ( CME,CBOE, ICE ...) > 150 each PER month.

    100 USD profit made by the firm will 50 USD net after taxes when paid out on your personal account (i.e. after all taxes of the corporation and your personal income tax (AbgeltungsSteuer)


    Regards
     
    #18     Jan 19, 2020
  9. %%
    Good points;
    I live in USa, but like a banker said '' a good CPA/certfied public accountant, will pay for himself/herself in a minute.'' Related to that plenty of US traders /inVestors figure JAN is a key measure in stock market=don't have losses...……………………………………………………………………..[when possible LOL]:D:D,:D:D:D:D:D:D:D
     
    #19     Jan 19, 2020
  10. canoe

    canoe

    LOL

    so correct me if i'm wrong but if you make 100k euros in gross profit by EOY by having 500k in wins and 400k in losses, then you'd have to pay (131,500 - 2630) = 128,870 euros in taxes?

    so basically you'd end up owing money even after having a gross profit of 100k euros EOY? who the hell even comes up with stuff like this?

    is this only for German stocks/derivatives or does this still apply if you're a German trading derivatives on non-German exchanges like the CME?
     
    #20     Jan 19, 2020
    gkishot likes this.