It's hard to say, I haven't even been trading a year. Hell, I haven't even began.
it is a simple fact that tax law in Singapore says that capital gains are not taxed.
Should the tax system be set up to ensure that millionaires pay at least the same % as middle income level taxpapers. For arguments sake say 40%.
The idea would be to lower the overall rate of tax by ensuring the wealthiest pay their fair share.
Correct. Unfortunately you don't know the difference between a capital gain and a trading profit. You'll find out once you start doing things in the real world, kiddo.
I've been trading since last June or so. No secret society has sent me a pamphlet to explain the difference between a "trading profit" and a "capital gain". Is there some website I should set my contact details on or something? Let me know.
You don't need a secret society. Everyone with money on the table knows how CGT v tax on ordinary income works. For someone with an opinion on everything else, I'm surprised you're not teaching us about it.
Saying "I didn't know that" isn't that hard, is it?
Capital gains counts as income in Australia does it not? I have read that at least a hundred times, not sure why you're making a big deal of it.
Capital gains for CGT purposes in Australia count as capital gains for CGT purposes. In Singapore capital gains for CGT purposes count as capital gains for CGT purposes.
You don't understand the difference between that and ordinary income. I'm making a big deal of it because you profess to be the font of knowledge on all things.
I just don't see what you are saying here. Whatever money I make through trading, it will eventually be taxed at 45% if I make enough of it. Correct? Yes it is. And this is my chief issue with the tax system in Australia. I couldn't care less about the semantics and naming conventions.
Income from share trading is taxed differently to income from share investing. The latter comes under the capital gains regime and has some special rules, like for instance, if you held the asset for more than a year, you only pay tax on 50% of the capital gain. Another rule is that losses from investments can only be written off against current and previous year capital gains from investments. It cannot be written off against normal income.
I just don't see what you are saying here. Whatever money I make through trading, it will eventually be taxed at 45% if I make enough of it. Correct? Yes it is. And this is my chief issue with the tax system in Australia. I couldn't care less about the semantics and naming conventions.
Likewise in Singapore, it seems you pay barely anything in tax. That is my main attraction to it.
Not at all; for instance, I don't know much about aeronautical engineering.
This will surely silence those here without a proper understanding of the marvellous god-like Singapore tax system.
I am very honoured to be in the company of such an intelligent individual such as yourself, so that you may confirm to us the correct way to go about not having your hard-earned money stolen.
If you could please PM me with information about how to start a company incorporated in Singapore from Australia, I would be eternally grateful.
Just do a search online for setting up a company in Singapore. I did it from here so not sure if it is different if you are based in Oz.
Starcraftmazter said:I just don't see what you are saying here. Whatever money I make through trading, it will eventually be taxed at 45% if I make enough of it. Correct? Yes it is. And this is my chief issue with the tax system in Australia. I couldn't care less about the semantics and naming conventions.
Personally i'm all for a flat (or severely flattened) tax. Say 2 or 3 brackets based on incomes, no other taxes, and no deductions. Would make things a lot easier and fairier, but put a whole ****e load of ATO staff and accountants out of jobs...
IE 0 - 20k = 0% tax
20 - 80 = 25% tax
80k + = 35% tax
When we look at EMTR's, we can see how harsh.As for the Australian tax system, it's pretty harsh as it is.
I'm well aware of all of that, and I fail to see how it's relevant to the fact that you are taxed at 45% for your profits - which is really the central issue, and the only thing of any importance.
Agree with above..but would prefer my numbers.
- 0 > 20k = 0% tax
- 20 > 60K = 25% tax
- 60 > 100K = 35% tax
- 100k+ = 50% tax
Correct. Unfortunately you don't know the difference between a capital gain and a trading profit. You'll find out once you start doing things in the real world, kiddo.
I've been trading since last June or so.
??????????I haven't even been trading a year. Hell, I haven't even began.
Yes, it's very different. That pesky little DTA between the countries doesn't allow you to set up a company in one country while resident in another to minimise tax.
I could have sworn your main issue was with paying tax on your capital gains from trading. Which you will do in Singapore.
You'll really enjoy the first time they audit you and slap you with a big bill for back taxes. I wonder how many spanks with the rotan they dole out for tax evasion over there. FWIW, ignorance of the law is not a defence.
Hence Warren Buffett making statements such as he pays less tax (as a %) than he's receptionist...
Is that fair? If you are rich and only have income from shares in America, you are taxed at what... 15%?
Well you are not taxed at 45% of your profits, is they are from capital gains on assets held for more than one year. Your are effectively taxed at 22.5% if your marginal rate is 45%. I was responding to your statement that capital gains vs trading profits are just a matter of semantics.
life is too short to waste it slaving with more than half going to the latest labor corrupt scheme
Taxation of dividends doesn't even make any logical sense. Company profits are already taxed by company tax - why tax it again with individual tax when they are paid out?
It is immoral.
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