<![CDATA[prop firm payouts and taxes - how is everyone handling this]]>serious question for those making real money from prop firms. how are you handling the tax situation?

prop firm pays you in USD via wise/bank transfer. legally its often classified as 'income from contractor services' which is different from capital gains from your own trading. tax treatment varies wildly by country.

not asking for legal advice, asking what people actually do. self-employed registration? company structure? just declaring as misc income? curious what works.

]]>https://forum.forexroasted.com/topic/303/prop-firm-payouts-and-taxes-how-is-everyone-handling-thisRSS for NodeFri, 05 Jun 2026 23:28:34 GMTMon, 18 May 2026 14:25:00 GMT60<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Thu, 21 May 2026 11:18:00 GMT]]>i set aside 40% of every payout for taxes automatically the day it lands 😅 might be overkill but i never get surprised in april. peace of mind > marginal yield

]]>https://forum.forexroasted.com/post/1329https://forum.forexroasted.com/post/1329Thu, 21 May 2026 11:18:00 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Wed, 20 May 2026 13:30:00 GMT]]>find a good accountant. seriously.

]]>https://forum.forexroasted.com/post/1328https://forum.forexroasted.com/post/1328Wed, 20 May 2026 13:30:00 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Wed, 20 May 2026 09:55:00 GMT]]>switzerland resident here. trading income from props is just normal income, taxed at marginal rate. fortunately no capital gains tax for individuals (private investors) so the classification matters less. but the marginal rate is high.

]]>https://forum.forexroasted.com/post/1327https://forum.forexroasted.com/post/1327Wed, 20 May 2026 09:55:00 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Wed, 03 Jun 2026 00:41:09 GMT]]>bad advice. since 2024 the common reporting standard means banks worldwide share account info automatically. you may not get caught immediately but tax authorities are getting better at cross-matching. its not 1995 anymore.

]]>https://forum.forexroasted.com/post/1326https://forum.forexroasted.com/post/1326Wed, 03 Jun 2026 00:41:09 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Tue, 19 May 2026 11:30:00 GMT]]>the answer everyone is dancing around: most people dont declare it and never get caught. but i didnt say that.

]]>https://forum.forexroasted.com/post/1325https://forum.forexroasted.com/post/1325Tue, 19 May 2026 11:30:00 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Wed, 03 Jun 2026 00:41:07 GMT]]>depends on residency. in most countries (UK, US, EU, AU) you owe tax on worldwide income regardless of where the payer is located. the prop firm being in dubai doesnt matter, YOUR residence determines your obligations. talk to a local accountant who has dealt with foreign income.

]]>https://forum.forexroasted.com/post/1324https://forum.forexroasted.com/post/1324Wed, 03 Jun 2026 00:41:07 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Mon, 18 May 2026 19:55:00 GMT]]>what do you put on tax forms when its from a prop firm in like dubai or seychelles? the broker isnt in your country

]]>https://forum.forexroasted.com/post/1323https://forum.forexroasted.com/post/1323Mon, 18 May 2026 19:55:00 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Mon, 18 May 2026 17:20:00 GMT]]>EU resident. set up a small operating company because at my income level the corporate tax + dividend tax was lower than direct income tax. accountant says this only makes sense above ~$60k/year in payouts.

]]>https://forum.forexroasted.com/post/1322https://forum.forexroasted.com/post/1322Mon, 18 May 2026 17:20:00 GMT<![CDATA[Reply to prop firm payouts and taxes - how is everyone handling this on Mon, 18 May 2026 15:48:00 GMT]]>UK based. registered as sole trader after my third payout. accountant treats it as self-employed income, NI applies, can deduct business expenses (computer, internet, subscriptions). cleaner than trying to fit it under capital gains.

]]>https://forum.forexroasted.com/post/1321https://forum.forexroasted.com/post/1321Mon, 18 May 2026 15:48:00 GMT