I’ve been trading crypto for a few years, and in that time, I’ve received numerous consulting enquiries from gold dealers and traders who needed to make or receive USDT payments.
This is how I found myself in the gold trading space and how I came up some some basic guidelines for trading both gold and USDT in Zambia. The two are very similar and different at the same time.
- Statutory and tax compliance
- Tax compliance
For both, you need to be tax registered with a TPIN (Tax Payer Identification Number).
You need to be registered for the correct tax types, recommended is Income Tax. Also recommended is VAT (Value Added Tax) depending on if your turnover is above K800,000 annually. Under Income Tax, you pay tax on your profit after allowable expenses. Income Tax is generally not an expensive tax and works out to be lower taxes than Turnover Tax if you plan ahead for your taxes.
VAT is equally an affordable tax if you plan ahead for it.
- Mineral Trading, Mineral Import, Mineral Export Permits
Depending on the type of mineral trading you will undertake, you need to plan ahead and get the correct permits to trade accordingly.
- Payments in USD (US Dollars)
As at right now, you can only get paid in USD via bank under certain specific conditions like the export of gold. USD payments within the country for local transactions are restricted, so you cannot make or receive a local USD transfer between counterparties. Seek professional advice to stay compliant and avoid fines or prison sentences.
- Payments in USDT or USD Cash
These are some of the options used by gold traders to make or receive payments for gold trading. It generally flies under the radar due to it not being done via banking channels. Seek professional help if you will be trading in USDT or cash as there are many risks.
- Scams and Frauds
The Gold and USDT trading space is full of fraudsters and scammers. It doesn’t matter that majority of traders are honest, the few scammers are enough to dent the market and make trading harder for all the majority honest traders.
Exercise common sense, caution and restraint when trading. Also, greed is one thing fraudsters and scammers use to ensnare traders. Always be ready to pay a fair price for your trades, avoid the trap of excessively discounted rates that should make you wonder the catch.
- Invest In Tools of Your Trade
Invest in apps, even pay subscription for top notch apps that make life simpler.
Invest in gold testing kits, smelters, etc.