Hi. I have some money Avanza ISK account and I wanted to do daily/weekly trade, so I thought some times my money may is just staying in Avanza ISK but not bought any stocks, which leads to ISK taxation. So, I opened a saving account in Avanza (1.5%) and put most of my money there, and any time I see it is a good buying time, I internally transfer it to Avanza ISK and buy the stock. Any time the stock is in high point and I sell it I transfer the money back to Avanza saving account. If i do this type of internal transfers several times like during weekly or even daily trading, should I pay tax for that money through each transfer? how is ISK tax rules regarding this situation?
That’s a very bad idea. Every time you add money to the ISK, you are taxed (currently roughly 0.22%)
The tax for an ISK is computed every quarter, and is based on (money on account first day of quarter + all deposits during quarter). Hence, for a withdrawal to be sensible from a tax perspective, you will have to keep that money outside the ISK over a full quarter.
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- so this 0.22 is only for adding to ISK and not withdrawing from ISK, yes?
- When is the quarter starting point? like beginning of spring, summer, automn, winter? or the date I do first withdrawal? for example, I withdrawed on June 30th from ISK to saving account, when can I bring the money back to ISK?
Quarter starting points are Jan 1, Apr 1, Jul 1, Oct 1.
If you withdraw and the money leaves the account at latest last of June it will not count for your value in determining tax basis on July 1. You can then deposit money on July 1 which will incur the deposit tax, but will not be calculated for your value on July 1.
Basically, you save nothing on taxes unless you keep it out for at least 2 quarters.
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Quarters start 1/1, 1/4, 1/7 and 1/10
An ISK have an assumed default annual return (schablonintäkt) of, currently, 2.96%. This is taxed with 30%, leading to a net tax of 0.888%. However, this is not computed daily, nor once a year, but quarterly, thus the quarter tax is 0.222%.
If you withdrew on 30/6 you have paid the tax on that money for the second quarter, and if you deposit them again now, you have gained nothing compared to having simply kept them in the account as paying the tax due to deposit or simply being there from the beginning makes no difference. The only tax gain is if you have them outside for the full 3rd quarter and deposit no earlier than october, thus avoiding tax for 3rd quarter.
This way of computing the tax is to avoid the trivial trick of withdrawing all money the day before the first day of the quarter (when the account value is checked and used for tax computation) and then adding them back again the day after. If the tax is based on both value on first day of quarter and all deposits during quarter this is not possible, or more precisely it is a net zero game. Withdrawing and depositing multiple times in a quarter becomes net negative from a tax perspective.
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I think the effect can be even worse as the tax is calculated annually and not quarterly. If you withdraw the money on say 29/6 and then deposit it back on 30/6 the quarterly balance which is used for the tax calculation will indeed be unaffected but the deposit will be added in addition making the total yearly tax higher than if the two transactions were not made.
No, every quarter is taxed independently in the ISK, not annually. But yes the effect of withdrawing on 29/6 and depositing again 30/6 will add a net cost of 0.222% on that amount according to description above.
so based on your speech, what is the optimal way of trading with minimum tax payment and not having hassle of reporting all trades in tax statement as AF account?
maybe just keeping the money stay in Avanza ISK and do buy and sell there, and in the periods that the stocks are sold, the money still remains in Avanza ISK? at least this way, I won’t pay multiple transferring to ISK tax.
You simply don’t use an ISK for a trading strategy which for some reason requires you to withdraw and deposit repeatedly due to the trading profit being less than the tax cost on non-invested capital.
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thanks for your info. sorry I am beginner regarding Swedish ISK tax rules. Based on what I have found, to say it simple, If I have for example 100000 SEK in my ISK one whole year, no matter if they are used to buy stocks and funds in ISK or just hanging there in ISK account with no investment, it will be taxed 0.888% percent i.e 888 SEK tax a year. Am I correct?
correct, if you have 100000 SEK in your account at 1/1, 1/4, 1/7 and 1/10, no withdrawls nor deposits, your tax will be 4 * 100000 * (0.0296/4 * 0.3) = 100000 * 0.888
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First 150 000 sek is tax free for 2025 so 250 000 would be 888kr in tax.
0.888% is for 2025.
2024 tax were 1.086%
2023 tax were 0.375%
Also tax is on value, if you use leverage tax is calculated on yours+borrowed capital. ISK-tax is low if you have high returns/low leverage but high if you use low returns/high leverage.