Taxation: How are binary options taxed?
Many investors ask how binary options gains are taxed. Investing in binary options is a relatively new practice on the European markets. There are no precise tax rules as of yet to address gains from binary options.
The fiscal administration does not specifically recognize revenues generated from binary options trading, and a legal void exists. A large number of traders and brokers are implicated in not officially declaring their gains due to the absence of any regulation obligating them to do otherwise.
Brokers are not required, in the total sense, to declare gains to the fiscal administration due to this lack of regulation. So these gains can be kept in an electronic portfolio that serves as a free bank account. Transactions and withdrawals from the distributor are conducted with a simple bank card.
On the other hand, by definition, all revenue generated is taxable. To avoid any disagreement, it’s wise to contact the nearest tax center to clarify your situation and inquire how trading gains are taxed.
Gains also can be considered as supplementary revenues on the financial declaration. But the legal void is very present. It is recommended to send a Request for Information by registered letter to tax services to have proof that the effort to find clarity was well executed.
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