Hi guys, I am in the process of filling out the documents for an application for a broker in the US. As part of my application I have to tell the broker where I am going to pay taxes. Once I start day trading, I will talk to a tax professional about this, but I am not really keen on spending so much money before I even have a broker. So maybe some of you are in a similar or even the same situation and could share your knowledge. I am a German citizen with my primary residence still in Germany. I have now been living in South Africa since February on a student visa and am most likely going to stay until July 2021. I am not even registered here in South Africa, as I never went to the town hall to do that. For some of you the answer might be crystal clear, but I am actually uncertain if I will have to pay taxes in Germany or South Africa. Thanks for any advice.
Better pay your tax in SA. With Germany's new tax laws, even if you are a profitable trader you will lose money after tax.
The residence that is still registered in Germany is basically just a room at my parents house. So I am feeling, also considering the 183 day rule, that I actually HAVE TO pay taxes in South Africa. And as you said CALLumbus with the new German tax rules coming (still can't believe that it will actually happen) day trading won't be profitable for the average trader anymore.
Why do you ask a question on a forum and then try to find an answer that you like? If you are a student and your residence is registered in Germany, you will pay your tax as if you live in Germany. Even if you would get a working visa in South Africa and still have a residence in Germany, you will still pay taxes in Germany unless their is a tax understanding between the two country's and you pay your taxes in South Africa for the work you did there. Then you are exempt for paying taxes in Germany. But trading taxes, are based on where you live, unless you go for an off shore structure. If you go for an offshore structure soly to prevend paying taxes in your home country, you are breaking the law. If you want to be taxed in South Africa, you need to have a residence there where you stay for more then 183 day's and a working permit for South Africa. If you have a residence in South Africa and you do not stay there for more then 183 day's in a year, Germany will tax you again as if your resisdence is in Germany.
Before you break your head about it. Are you consistently profitable? Is the amount of money you earn a relevant amount or is it "pocket money"? https://europa.eu/youreurope/citizens/work/taxes/index_de.htm https://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/index_de.htm