Prop Trading Fremdkapital was beachten? (Von Gewerbe bis zu Steuern) 2024

Summary

This video provides a comprehensive guide on professional trading, business registration, and taxes. The speaker explains the importance of registering a business once profits can be made, especially when using a funded trading account. Key points include understanding the differences between personal and business taxes, the reverse charge process for EU companies, and the importance of accurate invoicing and bookkeeping. The video also covers challenges like false self-employment, and provides practical advice for avoiding common pitfalls in the trading industry, ensuring compliance with tax regulations.

Takeaways

• 📈 A business registration is required for pro traders once they start making profits.
• 💼 A business should be registered when you have a funded account, as that's when profit generation becomes possible.
• 💰 Business registration costs typically range from €30 to €60, depending on the location.
• 📝 For the business description, it’s suggested to write something like 'Internet services on a commission basis' since traders are not handling real money but demo accounts.
• 📊 Income tax applies to traders rather than capital gains tax because trading is considered a business activity.
• 🔄 The reverse charge procedure applies to transactions with EU companies, meaning the recipient of the service is responsible for the tax payment.
• 💡 For companies outside the EU (like those in Dubai or the US), traders issue a net invoice without VAT.
• 🧾 It’s crucial to have proper documentation (invoices, receipts) to claim expenses such as challenge fees as deductions.
• ⚠️ Traders should avoid being classified as 'pseudo self-employed' by working with multiple prop trading firms.
• 🚀 It’s recommended to operate the trading activity as a full-fledged business instead of opting for the small business regulation, enabling better tax handling.

Q & A

What is the main reason a trader needs to register a business for prop trading?

A trader needs to register a business because prop trading involves profit-making, and any activity with a profit intent must be treated from a business perspective. This requires registering a business, as private trading tax rules do not apply.

When should a trader ideally register their business?

A trader should ideally register their business once they have a funded account. Before that, while going through challenges to qualify for a funded account, there's no profit yet, so no business registration is necessary.

What is the cost of registering a business in Germany?

The cost of registering a business in Germany typically ranges between €30 and €60, depending on the location and current fees.

What should a trader include in the business activity description when registering a business?

A trader should include something like 'Internet services on a commission basis' in the business activity description because prop traders often trade on demo accounts and receive commissions based on performance, not direct handling of real capital.

How does taxation work for prop traders in Germany?

Prop traders in Germany are subject to income tax rather than the capital gains tax that applies to private traders. The income tax is typically filed yearly.

What is the Reverse Charge procedure, and how does it apply to prop trading firms like FTMO?

The Reverse Charge procedure means that the recipient of services (the prop trading firm) is responsible for paying VAT to the tax authorities. For EU-based prop firms like FTMO, traders must issue invoices with a note on the reverse charge and without separately listing VAT.

How does invoicing work for non-EU prop trading firms?

For non-EU prop trading firms, such as those in Dubai or the USA, traders issue a net invoice without VAT, as the Reverse Charge procedure does not apply. These are treated as third-country invoices.

Why is it important for traders to obtain proper invoices for prop trading challenge fees?

It's important for traders to obtain proper invoices because the tax authorities often do not accept booking confirmations as valid documentation for expenses. A proper invoice is required to claim these expenses as deductions.

What is 'Scheinselbständigkeit' (false self-employment), and how can traders avoid it?

'Scheinselbständigkeit' refers to being classified as an employee rather than a self-employed individual, which can happen if a trader relies on a single company for all income. To avoid this, traders should work with multiple prop trading firms or diversify their income streams, such as through affiliate marketing.

Why does the speaker recommend not using the 'Kleinunternehmerregelung' (small business regulation) for prop trading?

The speaker recommends against the 'Kleinunternehmerregelung' because using a full business setup with a VAT ID allows better tax management, such as deducting expenses and handling VAT more efficiently.