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[kiwi trader]

Hi

Does anyone here trade for a living in New Zealand ?

I know that there is NO Capital Gains Tax in New Zealand. Does this mean any profits are Tax Free(probably too good to be true!)?.... Or if trading full time for onesself would any profit just be considered an "income" and therefore taxable?

Cheers

[fxkiwi]

With the thiefs in power at the moment there is no way to avoid paying tax here unless you set yourself up offshore.

There is no capital gains tax but unless you are only placing one or two trades a year this does not apply since trading you are looking for a short term movement to profit off then close it out and look for another. It is pretty hard to argue the fact that you bought it as an "investment" therefore avoiding tax unlike property that you normally hold for a few years minimum.

All the property speculation that has gone on over the last couple of years is already setting off alarm bells in government and it will only be a matter of time before we get a capital gains tax introduced here to aid in lining their pockets further.

Depending on your income, trading under your own name is as good as anything until you break the upper tax level at which time you might as well trade as a company limiting your tax to 33% this also has a few other benifits like claiming expenses etc etc.

The best thing to do is talk to an accountant who understands something about trading and see what they recommend.

Then again you could not tell anyone about it and hope IRD doesn't find out but remember if they do your screwed.

Happy Trading!!