A share savings account has been created focusing on getting more Danes to participate in the development of companies by investing their free funds in shares.
Since January 1, 2019, it has been possible to create such an account in most banks. The advantage of such an account is that you invest up to USD 50,000 in shares, and avoid having to pay a tax on any. gain of 17%.
Pay attention to inventory taxation
One of the things you need to be aware of if you want to invest in a stock savings account is that you get a good saving on the tax, but that it is done according to the stock principle. This means that you do not have to pay taxes when you make a profit, but even if you still own your shares and have not yet chosen to realize your profit by selling the respective shares.
Unlike real estate tax, this means you cannot generate a return on the portion you have to pay in taxes if you choose to hold on to a stock for many years. However, it is debatable whether or not it is a good idea. Most people think it’s a problem first if you own the same stock for more than 15 years, but in reality it’s about the gain.
Interesting for current investors
You already have a share income of more than USD 54,000 per year, so you will have to pay 42% of additional income from shares. In such a case, it will be interesting that you can save money by paying less tax. In this case, you will actually be able to save up to 25 percentage points, which of course is a good, noticeable difference.
However, the benefit is not as great for those who do not already have a share income of more than USD 54,000 per year, as this will mean a saving of 10 percentage points. If you already pay the highest tax rate on gains from stock trading, then you will achieve a saving that is 2.5 times greater than those who do not already pay the highest tax rate.
Keep an eye on account costs
If you make a comparison of two equity investments of USD 50,000, each held for one year and resulting in a return of 10%, then you will as a general rule. the private investor had to pay tax of USD 1,350. If you have a share savings account, you simply pay USD 850 in taxes. If you have USD 50,000 in your share savings account, it will mean a difference in tax payment of just USD 500.
Most people think that sounds fine, but if it is a good idea to create a stock savings account alongside your other equity investments, then it is important that you have a focus on costs. It doesn’t have to be particularly expensive until it can’t pay to fail a stock savings account because you have to pay too much money in fees, etc., so always worth paying attention.
However, there are many who can really benefit from a stock savings account, and it has certainly already become popular.