Forex and taxes

As you could note it on the many Forex forums, the question of the taxation is one of the questions which makes the most movement. Indeed, everyone is questioned, everyone has an opinion or experience to make divide, but little can be prided to offer answers which can make authority. We would not allot such a merit but endeavoured to clear up this bulky and complicated subject in order to facilitate the life of the traders.

While referring to various sites and by questioning in particular the Head office of Taxes (IGD), we can offer some brief replies right now to you:

1. The legality of Forex
In France, the trading on the foreign exchange market by a French resident answers certain conditions:
a) The broker must be approved by Banque de France.
b) The trading must be done according to the principle of the “spot forex”.

2. To fight the generally accepted ideas
Contrary to the generally accepted ideas, it is not when the trader repatriates its funds on an bank account in France which it becomes taxable. It is the possibility of having these funds which conditions the taxes level.


3. Forms to be used
Concerned with the income tax, under the terms of article 120 of the cgi, the declaration of the incomes of Forex must be done by using the following forms:
O Declaration of opening of account by form 3916.
O Form 2561 (a), line DL or DM for the PV/MV
O Declaration of the statement to defer line 2 TS
O Deduction during six years of the MV of statement Forex via form 2047 of the movable property.

4. Principles of the imposition
It is initially necessary to differentiate the foreign exchange market, of the stock market or future. The most been worth resulting from the trading on Forex must be declared in the register of the BNC (noncommercial benefit), is as nonprofessionals if you have another community activity, that is to say as professionals if it is your principal activity.
It is moreover possible to declare them in the register of the BNC but, because of the complexity which requires the assistance of an accountant, this means is used little.
Contrary to the fixed price of 27%, the income tax makes it possible to deduce all the expenses necessary to the realization from the profits (of the damping of the computer material to the subscriptions with flows via the travelling expenses for formations).
These expenses can represent up to 50% of the entire amount of your more been worth. With final, after having carried out such a declaration, the drawn advantage is largely higher than the fixed price of 27%.

5. Conditions of imposition according to the countries
Contrary to France, where the imposition can until reaching 60%, Switzerland does not impose the most not been worth on the exchange transactions and this, even for nonthe residents. The Belgian legislation is also interesting since the capital incomes are not imposed. On the other hand, the United States, where many brokers are, can impose up to 40%.
On the other hand, if you are resident French and that you carry out trades with a foreign broker, agreements between country exist so that covering is not done twice. For example, if your broker is in the United States, the agreements stipulate that you must declare the interests via the American administration while the statement must be declared in BNC with the French tax authority.