Welcome back dear loyal readers of Invest In The Stock, in today’s article, we will talk about trading and finance, specifically, we will deal with eToro taxes.
We’re going to figure out how much they pay, where and when. Through our short guide, we will take care of analyzing all the characteristics and peculiarities of this booming sector.
What are online trading taxes?
Now let’s begin to see what taxation on online trading is, an activity that plays a central role in this matter.
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Basically, online trading can generate interesting profits, and for this reason, all traders must know in depth how to do and how to deal with taxation in the world of Forex trading.
In our article, we will focus on the online trading fees of the eToro platform, which has interesting and advantageous features.
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Tax eToro
Let’s start by saying that eToro fees, as well as for any other online CFD broker, must be paid.
Furthermore, we must also specify that it must be kept in mind that brokers cannot be considered as withholding agents.
Therefore, this means that the earnings that will be shown on the eToro platform are basically the gross receipts.
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Therefore, it is not the trading platform itself that takes care of deducting taxes directly from the customers’ activities, but they themselves must do it independently.
Among other things, compared to other activities, in online trading there aren’t many bureaucratic procedures to deal with, and the compilation process is quite easy.
Pay eToro taxes
To pay eToro taxes without particular problems, it is better to work alongside a CAF or your trusted accountant for payment transactions.
So as to be certain of the smooth running of all operations carried out on the trading platform in question.
eToro transaction history
Also consider that eToro, being a first-level broker, provides a section where it is possible to download the customer’s eToro transaction history which:
Contains all positions opened or closed during the year
After obtaining this annual eToro tax report, you will have to proceed with the compilation of the Single Model or Form 730.
As for the period in which these eToro fees will be payable, it is usually done in the initial period of the year, more precisely in February.
Consequently, they will provide for the payment of the income earned in the past year.
This means that the earnings produced by trading on eToro for the year that has just ended will be declared and paid in February or March of the following year.
In concrete terms, all the activities that have been carried out during the year must be declared.
Taxation eToro capital gains and capital losses
In online trading, taxation is 26%, but keep in mind that only capital gains will be taxed by the state.
Therefore, if profits are obtained, of whatever extent they are, these will be declared, and consequently, taxes will be paid on them in the tax return:
To avoid running into checks and possible sanctions by the Treasury.
As regards capital losses, on the other hand, they don’t necessarily have to be declared, even if it is better to do so.
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We also remind you that if the latter are not declared, you will lose the possibility of being able to recover them in the future.
Well dear friends of Invest In The Stock, thanks to our short guide, you now know everything about eToro fees.
Invest In The Stock, The Editorial Staff
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