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  1. #1
    Member NOCASH's Avatar
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    Default Buying and selling ASX shares - tax complications

    Recently I have been buying and selling during the day. To make a quick profit. I live in NZ I use ASB trading account. Just wondering do I need to pay capital gains? Or any taxes. I have been trading in and out with couple of months now.
    Bye Bye BUy

  2. #2
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    If noone else wants to venture an opinion I will.
    In my opinion you would need to pay tax on any gains and could deduct any losses. It is not a capital gain if its a trading profit. You are a bit like a retailer buying stock and selling for a profit.

  3. #3
    The past is practise. Vaygor1's Avatar
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    Given the limited info provided in your question, the answer is an unequivocal Yes. You have bought with the intent to sell.

  4. #4
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    Sorry to resurrect an old thread but I thought it would be better than creating a new one.

    If I am a day-trader and I am conducting most of my trades on the ASX, would I only have to pay income tax in NZ? (I am a citizen and resident of NZ)

    Any Australian tax requirements?

    For tax purposes lets say I am operating as a sole trader.

    Thanks
    Last edited by hummerh40; 09-05-2016 at 09:27 AM.

  5. #5
    FEAR n GREED JBmurc's Avatar
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    you only need to pay NZ tax ....I'd recommend to talk with a good accountant ...I trade ASX ..within NZ company and pay 28% tax on profits / claim any yearly losses etc ...... SKY TV/mags books / internet/laptop/printer etc / cell-phone / commissions.... all tax write-offs ..
    Last edited by JBmurc; 09-05-2016 at 10:36 AM.
    People don't have ideas, ideas have people

  6. #6
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    what is this $50k threshold i see people mentioning sometimes? does this mean if your trades are generally under 50k youll likely fly under the radar and not have to pay any tax??

  7. #7
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    I expect they're talking about the foreign investment fund rules - http://www.ird.govt.nz/toii/fif/how-...tax-threshold/

    It assumes your overseas investments are generating a minimum taxable return which you'll be liable to pay if you have over $50k invested overseas. If you've followed the TOP housing tax, it's basically the same thinking...

    Since most New Zealanders hold their overseas assets though PIE funds, it's not really mentioned in the mainstream media etc..

    HTH

  8. #8
    Ignorant. Just ignorant.
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    Quote Originally Posted by huxley View Post
    I expect they're talking about the foreign investment fund rules - http://www.ird.govt.nz/toii/fif/how-...tax-threshold/

    It assumes your overseas investments are generating a minimum taxable return which you'll be liable to pay if you have over $50k invested overseas. If you've followed the TOP housing tax, it's basically the same thinking...

    Since most New Zealanders hold their overseas assets though PIE funds, it's not really mentioned in the mainstream media etc..

    HTH
    Do they really? Well I never!

    I would have thought that for many if not most, 10% Australian NRWT would have been more attractive than 28% New Zealand PIE tax. mind you, I'm assuming they're all "r*ch pr*cks"

  9. #9
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    Quote Originally Posted by GTM 3442 View Post
    Do they really? Well I never!

    I would have thought that for many if not most, 10% Australian NRWT would have been more attractive than 28% New Zealand PIE tax. mind you, I'm assuming they're all "r*ch pr*cks"
    You still have to the difference in your marginal rate and the 10% NRWT. Or are you suggesting that can be ignored?

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