passive income

This thread is archived and the information may not be up-to-date. You can't reply to this thread.

(Champion)Champion

5 Apr 2022

I have a asset management company that trades shares regularly, much like a share investor - only activity earning income at the moment. Is this classified as passive income in the context of determining whether the 25% or 30% tax rate applies?

0 likes

2,155 views

1 replies

2,155 views

1 replies

Most helpful response

Most helpful reply

Bruce4Tax

(Taxicorn)Taxicorn

6 Apr 2022

If company shows income as a share trader, then 25% rate will apply.

That means:

Sales = stocks sold
Purchases = stocks bought
Trading stock = stocks held at 30 June - valued at cost or market
Expenses = broker fees, etc
CGT - does not apply

All replies

Most helpful reply

Bruce4Tax

(Taxicorn)Taxicorn

6 Apr 2022

If company shows income as a share trader, then 25% rate will apply.

That means:

Sales = stocks sold
Purchases = stocks bought
Trading stock = stocks held at 30 June - valued at cost or market
Expenses = broker fees, etc
CGT - does not apply

1 likes

Liked by wiz

Most helpful response

All replies

Featured articles

How to work out your tax residency

Top liked users

Top contributors

Explore tax & super topicsExplore tax & super topics

About usAbout us