- BDSwiss flat tax is not paid
- Investment income must be stated in the income tax return
- BDSwiss flat tax that is not deducted brings more liquidity
The BDSwiss flat tax must be paid by the trader Take over!
All banks and other financial service providers abroad do not have to comply with German tax legislation and therefore deduct from the capital gains, for example through trading in binary options, no flat rate tax, no solidarity surcharge and no church tax. This means that all profits are net on the trading account and the trader is obliged under tax law to declare this income in income tax. Any type of investment income is taxable. Of course, this also applies to all capital gains from share profits, interest and also all other financial products, such as binary options.
Where can I find a reference to the BDSwiss flat tax?
The question The taxation of capital gains is only partially answered in the FAQ on the broker BDSwiss website. The question is: Do the payouts have to be taxed? The answer to this is: BD Swiss customers are responsible for paying any taxes that may arise in their place of residence. Please see our general conditions for further details. If you enter "flat tax" in the question box, there is no hit. When entering "tax" you get a note with a link to the general terms and conditions. Unfortunately, you then have to read the entire terms and conditions. Visitors of the website with BDSwiss experience, who know roughly where to look for something, will probably come across the indications of a tax quickly, but in our opinion the question of the flat tax on the page should be answered more clearly for the "inexperienced" reader
The non-deducted BDSwiss flat-rate withholding tax brings more liquidity!
The question of the taxation of investment income appears very little in a binary options broker comparison. The reason for this is first of all that the flat-rate withholding tax regulation is the same for all brokers abroad and for brokers headquartered in Germany the legal regulation for the payment of flat-rate tax applies anyway. What one could point out as a BDSwiss advantage would be the fact that the profits from successful trades are credited to the trading account without any tax deduction. This means that there are net inflows to the trading account, without deduction of the withholding tax, without soli deduction and for customers subject to church tax even without a church tax deduction. The result is increased liquidity in the trading account throughout the year. The trader can use this liquidity advantage over brokers with headquarters in Germany all year round for new trades and thus generate additional profits. Nevertheless, the flat-rate withholding tax and, in addition, at least the solidarity surcharge after the submission of the income tax return are due in the following year, of course, and the taxpayer should in any case prepare for a substantial additional tax payment if the profits are high.
The BDSwiss flat-rate tax as a conclusion!
Binary options are risky and are not suitable for every investor. If you want to trade, you have a serious broker at your side with BDSwiss. Anyone who is a customer of the binary options broker BDSwiss will not receive any deduction for the flat-rate tax, the solos and, if applicable. the church tax from its capital gains. However, investment income is always taxable and all income must be listed in the income tax return. For German customers, the broker should include this information in the FAQ and not just refer to the tax liability in their home country. The advantage of the BDSwiss customer, however, is that the non-withholding tax does not apply to the withholding tax, so that all income is posted to the trading account, which means that more liquidity is available for trades throughout the year.
Other brokers with similar rules on flat rate tax: BDSwiss Alternative