SARS and the private Trader

Hi Traders

I'm about to start a live account and I'm deadly serious about being successful at this. I've educated myself(still am and always will), demo traded, badly at first but now my win/lose is above 50% and I feel I'm ready to go live.

My question is this: What is the best route to go in terms of SARS.
Do I continue in my pvt capacity and declare the income and pay PAYE?
Do I open up a Private company, pay tax after expenses etc and draw a 'salary'?

Can any of you more experienced guys please care to comment?

Thanks,

Tim

Tradman wrote:Hi Traders

I'm about to start a live account and I'm deadly serious about being successful at this. I've educated myself(still am and always will), demo traded, badly at first but now my win/lose is above 50% and I feel I'm ready to go live.

My question is this: What is the best route to go in terms of SARS.
Do I continue in my pvt capacity and declare the income and pay PAYE?
Do I open up a Private company, pay tax after expenses etc and draw a 'salary'?

Can any of you more experienced guys please care to comment?

Thanks,

Tim

If you are looking to do this as a profession then I would advise you to do so as a company, it has a lot of advantages when it comes to paying tax. You can start of with PAYE though if you would like to see how things go before going through all the hassles of opening a company. The most important part is just to make sure that you do pay tax.

Thanks for the reply Mayor

Tradman have a look at Standard Bank FX page. Apparently the first million rand a year is exempt from tax clearance certificate.

http://corporateandinvestment.standardbank.co.za/standardfxtrader/exchange_control.html