Tax on active traders in Germany

Discussion in 'Taxes and Accounting' started by Maverick2608, Oct 28, 2021.

  1. 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.

  2. d08


    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.
    murray t turtle likes this.
  3. 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.
    murray t turtle likes this.
  4. Correct.
  5. Do you believe Singapore does not differentiate?
  6. In tax law arbitrary = disadvantage for you and me.
  7. d08


    I don't know about Singapore specifically.
  8. 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.
    KCalhoun likes this.
  9. Ok, which Asian country/countries do you know does not differentiate?
  10. 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.

    #10     Oct 28, 2021