The capital gain ( CGT ) tax is the tax on capital gains, the realized profit on the sale of a non-inventory asset that is greater than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries apply a capital gains tax and most have different tax rates for individuals and companies.
For equities, examples of popular and liquid assets, national and state legislation often have large amounts of fiscal obligations that must be respected in relation to the acquisition of capital. Taxes are charged by the state for transactions, dividends and capital gains in the stock market. However, these fiscal liabilities may vary from jurisdiction to jurisdiction.
Video Capital gains tax
Argentina
There is no certain capital gains tax in Argentina; however, there is a 9% to 35% tax for the fiscal population on their world income, including capital gains.
Maps Capital gains tax
Australia
Australia collects capital gains tax only after capital gains realization, except for certain provisions related to deferred interest payable such as bonds without coupons. The tax does not separate in its own right, but is part of the income tax system. The proceeds from the assets sold less the "cost base" (the original cost plus the increments to increase in cost price over time) are capital gains. Discounts and other concessions apply to certain taxpayers in various situations. From September 21, 1999, after a report by Alan Reynolds, a 50% share of the capital gains tax was applied to the individual and to some trust that acquired the asset after that time and who has held the asset for more than 12 months, but the tax is levied without adjustment to the cost basis for inflation. The amount remaining after applying the discount is added to the taxpayer's income for the financial year.
For individuals, the most significant exception is the family home. The sale of private residential property is usually exempt from capital gains tax, except for realized gains during periods in which the property is not used as a person's personal residence (for example, when rented to another tenant) or attributable parts for business use. Capital gains or losses as a general rule can be ignored for CGT purposes when assets are acquired before September 20, 1985 (pre-CGT).
Austria
Austria booked a capital gain of 25% (on demand accounts and interest rates "Sparbuch") or 27.5% (all other types of capital gains). There are exceptions to capital gains from the sale of shares of foreign entities (with opaque taxes) if participation exceeds 10% and shares held for more than one year (called "Schachtelprivileg").
Barbados
There is no capital gains tax charged in Barbados.
Belgium
Under the waiver of participation, the capital gains realized by a Belgian firm on shares in a Belgian or foreign company are entirely exempt from corporate income tax, provided that dividends on shares qualify for exclusion of participation. For the purposes of exclusion of participation to obtain capital, a minimum participation test is not required. Unrealized capital gains on shares recognized in the financial statements (whose recognition is optional) may be taxed. But roll-over assistance is provided if, and as long as, the profit is booked in a separate reserve account on the balance sheet and is not used for distribution or allocation of any kind.
As opposed to a new liberation from capital gains realization, capital losses on shares, both conscious and unrealized, are no longer tax deductible. However, the losses incurred in connection with the liquidation of a subsidiary are subtracted to the amount of paid-up capital stock.
Other capital gains are taxed at ordinary rates. If the total amount of the sale is used for the purchase of a depreciable fixed asset within 3 years, the imposition of a tax on capital gains will be disseminated during the period of these depreciable assets.
Belize
There is no capital gains tax for residents or non-residents in Belize.
Brazil
Capital gains tax is paid only on realized profits. At the current stage, 15% tax for transactions longer than one day and 20% for daily trading, both transactions must be paid in the following month after selling or closing positions. Dividends are tax-exempt, since the issuing company has paid to RECEITA FEDERAL (IRS Brasil). Derivatives (futures and options) follow the same rules for tax purposes as company stock. When selling less than R $ 20,000 (Brazilian Reais) within a month (and not in day trading), financial operations are considered tax exempt. In addition, non-residents have no tax on capital gains.
Bulgarian
Corporate tax rate is 10%. Personal tax rate is flat at 10%. There is no capital gains tax on equity instruments traded on the BSE.
Canada
Currently, only 50% of capital gains can be taxed in Canada at the individual tax rate. Some exceptions apply, such as selling a person's primary residence that may be exempt from tax. Capital gains made by investments in the TFSA are not taxed.
For example, if your capital gain (profit) is $ 100, you are taxed at $ 50 at your marginal tax rate. That is, if you are in the top tax bracket and your profit is $ 100, you will be taxed at $ 50 at about 43%, in Ontario. The formula for this example using the upper tax bracket is as follows:
(Capital gain x 50.00%) x marginal tax rate = capital gains tax
($ 100 x 50,00%) x 43% = $ 50 x 43% = $ 21,50
In this example, your capital gains tax at $ 100 is $ 21.50, so you have $ 78.50.
In the 2013 budget, interest can no longer be claimed as capital gain. The formula is the same for capital losses and this can be brought forward indefinitely to offset the capital gains in coming years; unused capital losses in the current year may also be returned to the previous three taxable years to compensate for the capital gains tax paid in those years.
If a person's income comes primarily from capital gains then it may not be eligible for a 50% multiplier and will instead be taxed at the full income tax rate. CRA has a number of criteria to determine whether this will be the case.
For such companies for individuals, 50% of realized capital gains can be taxed. Taxable net income (which can be calculated as 50% of total capital gain minus 50% of total capital loss) is subject to income tax at the normal corporate tax rate. If more than 50% of small business revenues come from certain investment business activities (which include income from capital gains), they are not allowed to claim small business deductions.
Capital gains derived from income in the Registered Retirement Savings Plan are not taxable at the time the benefits are realized (ie when the holder sells the shares that have been valued in their RRSP) but they are taxed when funds are withdrawn from the registered plan (usually after converting to income funds registered.) These gains are then taxed at the full marginal rate of the individual.
Capital gains derived from income in TFSA are not taxable at the time the benefits are realized. Money withdrawn from TFSA, including capital gains, is also not taxable.
Unrealized capital gains are not taxable.
Cayman Islands
There is no capital gains tax imposed on every transaction in the Cayman Islands. However, Cayman Islands entities may be taxed on capital gains made in other jurisdictions.
China
The tax rate applicable to capital gains in China depends on the nature of the taxpayer (ie whether the taxpayer is a person or company) and whether the taxpayer is resident or non-resident for tax purposes. It should be noted, however, that unlike the general tax system, Chinese income tax laws do not make a difference between income and capital. What taxpayers and practitioners often refer to as a capital gains tax is actually in the income tax framework, not a separate regime.
Companies receiving taxes will be taxed at 25% in accordance with the Company's Income Tax Code. Non-resident companies will be subject to a 10% tax on capital gains pursuant to the Implementation Rules for the Company's Income Tax Law. In practice, where a resident contracting partner alienates assets located in China as part of his ordinary business, the profits it gains will tend to be valued as if it were a capital gain, rather than a business advantage. This is somewhat contrary to the basic principles of double taxation treaties.
The only taxation that specifically handles the treatment of the PRC's income tax on QFII's revenue from holding and trading of Chinese securities is Guo Shui Han (2009) No.47 ("Circular 47") issued by the State Tax Administration ("SAT" ) on January 23, 2009. This circular discusses the treatment of dividend and interest-bearing deductions received by QFII from Chinese enterprises; however, the 47th circle is silent on the treatment of capital gains obtained by QFII on A-share trading. It is generally accepted that Circular 47 is intentionally silent about the capital gains and possible indications that the SAT is considering but still has not decided whether to grant tax exemptions or other concessionary treatment for capital gains obtained by QFII. However, it is noted that there are cases where QFII withdraws capital from China after paying a 10% tax withholding on profits earned through stock trading over the years based on transaction-per-transaction. This uncertainty has caused significant problems for investment managers who invest in A-Shares. Guo Shui Han (2009) No. 698 ("Circular 698") issued on December 10, 2009 dealing with the tax treatment of the PRC's corporate income on the transfer of ownership rights of PRC by non-PRC corporations directly or indirectly but has not yet settled the uncertain tax position relating to A-Shares. In connection with Circular 698 itself, there is the view that it is inconsistent with the Corporate Income Tax Code as well as the double taxation treaty signed by the Chinese government. The legitimacy of the Circular is still controversial, especially given the recent developments in the international arena, such as the case of TPG in Australia and the case of Vodafone in India.
Croatian
The capital gains tax in Croatia is equal to 12%. It was introduced in 2015.
Cyprus
As determined by the Cyprus Capital Income Tax Act, the capital gains tax in Cyprus arising from the sale or disposition of immovable property in Cyprus or the disposal of shares of an immovable property company in Cyprus and not listed on a recognized stock exchange. These profits are not added to other income but taxed separately. Payment of immovable property taxes is paid by individuals and companies on property held in Cyprus.
Capital gains taxes are not applicable for profits from the sale of overseas real estate by nonresidents, offshore entities, or non-residents when they buy assets. Gains arising from the release of immovable property held outside Cyprus and shares of the company, property which consists of immovable property held outside Cyprus, shall be exempt from capital gains tax. Individuals may, subject to certain conditions, be able to claim certain deductions from applicable taxable profits.
Czech Republic
Capital gains in the Czech Republic are taxed as income for companies and individuals. The Czech income tax rate for individual income in 2010 is an average rate of 15%. The company tax in 2010 was 19%. Capital gains from the sale of shares by companies holding 10% or more are eligible for exclusion of participation on certain conditions. For individuals, profit from the sale of primary personal residences, held for at least 2 years, is exempt from tax. Or, if not used as a primary residence, if held for more than 5 years.
Denmark
Dividend dividends and realized capital gains on shares are subject to 27% to individuals earning profits up to DKK 48,300 (2013 rate, adjusted annually), and on 42% of the above profits. Bringing realized losses on shares allowed.
The individual interest income from bank deposits and bonds, realized gains on property and other capital gains are taxed up to 59%, however, some exceptions occur, such as selling a major private home or gains in selling bonds. Interest paid on the loan can be deducted, although if net capital income is negative, only about. 33% tax credit apply.
The company is taxed at 25%. Distribute dividends at 28%. Ecuador
Corporate tax:
The residence for tax purposes is based on the place of incorporation.
Residential entities are taxed on income worldwide. Non-residents are taxed only on Ecuadorian source income.
Capital gains are treated as ordinary income and taxed at a normal corporate rate.
The standard rate is 22%, with the applicable 15% reduction rate where the company's profits are reinvested for purchases of machinery or equipment and/or acquisitions of new technologies. Companies involved in the exploration or exploitation of hydrocarbons are also subject to standard corporate tax rates.
Private taxation:
Residents who live there are taxed on their income worldwide; non residents are taxed only on Ecuador's source income.
A person is considered a resident if you are in Ecuador for more than 6 months of the year.
Capital gains are treated as ordinary income and taxed at normal levels.
Rates are progressive from 0% to 35%.
Egypt
There is no capital gains tax. After the Egyptian Revolution there was a proposal for a 10% capital gains tax. This proposal began life on May 29, 2014. Egypt excludes bonus shares from a new 10 percent capital gains tax on profits made on the stock market as the country's Finance Minister Hany Dimian said on May 30, 2014, and the distribution of bonus shares will be exempt from tax, and the new tax will not apply retroactively.
Estonian
There is no separate capital gains tax in Estonia. For the Estonian population, all capital gains are taxed equal to ordinary income, a rate that currently stands at 20%. Indigenous people who have an investment account can realize capital gains in some classes of tax-free assets until withdrawals from investment accounts. For legal persons residing (including partnerships), no taxes are paid for realizing the acquisition of capital (or receiving other types of income), but only on dividend payments, payments of capital (in excess of contributions to capital) and unrelated payments with business. The income tax rate for the resident legal officer is 20% (payment of 80 units of dividend triggers 20 units of tax due).
Finnish
The capital gains tax in Finland is 30% of capital expenditures realization and 34% if the realization of capital income is more than 30,000 euros. The capital gains tax in 2011 was 28% of capital expenditure realization. Carryforward realized losses are allowed for five years. However, capital gains from residential home sales are tax-free after two years of stay, with certain limitations.
French
For residents, capital gains on the sale of financial instruments (stocks, bonds, etc.) are taxed at marginal tax rates (up to 45%), plus 15.5% of social contributions (ie: up to 60.5%). A reduction of 20 to 40% of gross capital gain can be applied if the instrument has been held for at least 2 years.
If stocks are deposited in a special account (called PEA), the benefits are only subject to social security taxes as long as the PEA is held for at least five years. The maximum amount that can be deposited in PEA is EUR152,000.
Profits derived from the sale of primary residence are not taxable. Profits derived from the sale of another real estate held at least 30 years, however, are not taxable, although this will be 15.5% social security tax by 2012. (There is a shear scale for non-primary residential property owned for between 22 and 30 years old.)
Non-residents are generally taxed on the realized capital gains on French real estate and on some French financial instruments, subject to the applicable double tax treaty. But social security taxes are usually not paid by non-residents. A French tax representative will be compulsory if you are not a resident and you sell a property of more than 150,000 euros or you own real estate for more than 15 years.
German
In January 2009, Germany introduced a very tight capital gain tax (called Abgeltungsteuer in German) for stocks, funds, certificates, bank interest rates etc. Capital gains taxes apply only to financial instruments (stocks, bonds etc.) purchased after December 31, 2008. Instruments purchased prior to this date are exempt from capital gains tax (assuming they have been held for at least 12 months), even if they sold in 2009 or later, except for legal changes. Certificates are treated exclusively, and are only eligible for tax exemption if they have been purchased before March 15, 2007.
Real estate continues to be exempt from capital gains tax if it has been held for more than ten years. German capital gains tax is 25% plus Solidarity surcharge (additional taxes originally introduced to finance the 5 eastern states of Germany - Mecklenburg-Western Pomerania, Saxony-Sachsen-Anhalt, Thuringia and Brandenburg) and reunification fees, but then saved to finance all types of publicly funded projects throughout Germany), plus Kirchensteuer (church tax, voluntarily), resulting in an effective tax rate of about 28-29%. Cost reductions such as custodial fees, travel to annual shareholder meetings, legal advice and taxes, interest paid on loans to buy shares, etc., are no longer permitted starting in 2009.
There is a allowance (Freistellungsauftrag) on ​​the German capital gain income of EUR801 per person per year that you should not be taxed, if the appropriate form is completed.
Hong Kong
In general Hong Kong has no capital gains tax. However, employees who receive shares or options as part of their remuneration are taxed at the normal Hong Kong income tax rate based on the value of the shares or options at the end of the vesting period less any amount paid by individuals for the grant.
If part of the vesting period is spent outside Hong Kong then the tax payable in Hong Kong is valued based on the proportion of time spent working in Hong Kong. Hong Kong has very few double tax treaties and therefore there is little help available for double taxation. Therefore, it is possible (depending on the country of origin) for employees moving to Hong Kong to pay the full income tax on shares held in both their home countries and Hong Kong. Similarly, an employee leaving Hong Kong may be taxed on the unrealized capital gains of their shares.
The imposition of Hong Kong tax on capital gains on shares or employee options subject to the vesting period, contrary to the treatment of shares or unlimited options free of capital gains tax.
For those who trade professionally (buying and selling securities often to earn income for life) as "merchants", this will be treated as income subject to personal income tax rates.
Hungarian
Since January 1, 2016 there is one fixed tax rate (15%) of capital income. These include: selling stocks, bonds, mutual fund shares and also interest from bank deposits. Since January 2010, Hungarians can open a special "long-term" account. The tax rate on the capital gains from the securities held in the account is 10% after a 3 year holding period, and 0% after the maximum 5 year period of the account expires.
Iceland
From 1 January 2011, capital gains tax in Iceland is 20%. That was 18% before that (for a full year, in 2010), which in turn was the result of a progressive increase in the previous few years.
- 2008
- 10%
- 2009 (up to June 30)
- 10%
- 2009 (from July 1)
- 15%
- 2010
- 18%
- 2011
- 20%
India
In 2018, equity listed on a recognized exchange is considered long-term capital if the holding period is one year or more. Up to January 31, 2017, all long-term capital gains from equity are exempted under section 10 (38) if shares sold through recognized stock exchanges and Securities Transaction (STT) Taxes are paid on sale. STT in India is currently between 0.017% and 0.1% of the total amount received on sale of securities through a recognized Indian stock exchange such as NSE or BSE.Now, from TA 18-19, the exclusion of u/s 10 (38) has been withdrawn and section 112A has been introduced. Long-term capital income should be taxed at equity @ 10% if profit exceeds Rs. 1,00,000 per new section.
However, if the equity is held for less than one year and sold through a recognized stock exchange, short-term capital gain may be taxed at a fixed rate of 15% to 111A and other additional costs, subject to tuition fees. (w.e.f. April 1, 2009.)
With respect to immovable property, the tenure period has been reduced to 2 years to qualify for long-term capital gains. Meanwhile, many other capital investment such as Jewelry, etc. Considered long-term if the holding period is 3 years or more and taxed @ 20% u/s 112.
Capital Getting Tax Rates for Fiscal Year 2017-18 (Assessment Year 2018-19)
Ireland, Republic
As of December 5, 2012, there is a 33% tax on capital gains, with some exceptions and reductions (eg agricultural land, primary residence, transfer between spouses). Profits made when an asset originally purchased before 2003 attract indexing aid (asset costs can be multiplied by published factors to reflect inflation). The cost of purchase and sale can be deducted, and each person has an exclusion band of EUR1,270 per year.
The tax rate is 23% on certain investment policies, and rises to 40% on certain offshore profits when they are not stated on time.
The tax on capital gains arising in the first eleven months of this year shall be paid on December 15, and the tax on capital gains arising in the last month of this year shall be paid on January 31 next.
Isle of Man
There is no capital gains tax.
Israel
The capital gains tax in Israel are set at 25% in real gains made in index bonds without inflation, (Or ​​20% for substantial shareholders) 25% on any other capital acquisition. (Or 30% for substantial shareholders)
Italy
Income tax of 27.5% corporate income tax (IRES) on profits derived from the release of participation and extraordinary capital increase. For individuals (IRPEF), capital gains will be taxed 26%.
Jamaica
There is a capital gains tax in Jamaica.
Japanese
In Japan, there are two options to pay tax on capital gains from the sale of listed shares. Firstly, Withholding Tax ( ???? ) , taxes all proceeds (excluding profit or loss) of 1.05%. The second method, stating the result as "taxable income" ( ???? ) , requires an individual to state 26% of the results on their income tax return. Many merchants in Japan use both systems, implying an income on the Withholding Tax system and the loss as taxable income, minimizing the amount of income tax paid.
In 2003, Japan canceled the above system by supporting a flat 20% tax on profits, although the rate was halved while at 10% and after postponed several times the return to the normal 20% level is now set for 2014. Losses can be brought forward during 3 years. Starting 2009, losses can be subtracted from dividend income declared as "Separate Income" because the tax rates in both categories are the same (ie, 20% while halved to 10%). Aggregate profits and dividends to achieve a single digit taxed at the same rate are quite innovative.
Kenya
Capital gains tax was abolished in Kenya in 1985 to spur growth in securities and property markets. Kenya's parliament passed a motion in August 2014 to reintroduce capital gains tax in January 2015 and "is expected to increase the cost of land transactions as investors pass on costs to buyers and will also affect those who invest in stocks and debt in the stock market." Capital gains tax comes into effect on January 1, 2015 with 5% as the prevailing tax rate.
Latvian
Since January 1, 2013, capital gains from the sale of shares are exempt from corporate income tax. If a loss occurs on a sale, it will not be deducted. To apply the exemption, there is no limit to the minimum holding period or stock ownership. Exceptions, however, do not apply to profits from the sale of shares in an entity located in the registered tax haven countries. The latest profit is subject to a regular corporate income tax rate of 15%.
Similarly, gains on the disposal of securities quoted on markets regulated in the EU or EEA countries and investment certificates in EU and EEA open investment funds are exempt from taxation in Latvia.
Gains on the disposal of other investments (such as real estate property) are taxed at the corporate income tax rate of 15%.
Incoming dividends are not taxed in the hands of Latvian companies (except, dividends received from low tax jurisdictions). Outbound dividends are not taxable, unless dividends are paid to low tax jurisdictions (15%).
In the hands of individuals, capital gains are taxed at 15%, dividends - 10%.
Lithuania
Capital gains tax from the sale of securities and from the sale of real estate is 15%. Profits from securities sales are exempted if acquired more than 366 days before their sale and the individual owns no more than 10% of the securities for three years before the taxable year in which the securities are sold. Profits from the sale of real estate are waived if the property is held for more than 3 years before it is sold. This tax exclusion will cease to prevail on January 1, 2014 for an annual profit of more than 10,000 LTL.
Malaysia
There is no capital gains tax for equity in Malaysia. Malaysia used to have a capital gains tax on real estate but taxes were lifted in April 2007. However, the real property profit tax (RPGT) introduced in 2010 is now valid for properties sold less than six years after its purchase. Property discarded less than three years after purchase will incur a 30% CTR while the sale in the fourth and fifth year thereafter will be subject to RPGT 20% and 15%. As for non-citizens, the RPGT is charged at 30% on the profits of the disposed property in the holding period until the sixth year. And for disposal done in the sixth year and thereafter, 5% of RPGT is charged for non-citizens, while foreign companies and buyers of property are taxed at 5%.
Malaysia has enacted a capital gains tax on stock options and share purchase plans received by employees starting in 2007.
For anyone who trades professionally (buying and selling securities often to earn income for life) as a "merchant", this will be treated as income subject to personal income tax rates.
Mexico
There is no current Capital Income Tax for profit on the stock market, it will be introduced in 2014 with a rate of 10% in Mexico.
Moldova
Under the Moldovan Tax Code, capital gain is defined as the difference between the acquisition and the disposition price of the capital asset. Only this difference (ie profit) is taxable. The prevailing rate is half (1/2) of the income tax rate, which for individuals is 18% and for the company is 15% (but in 2008 was 0%). Therefore, in 2008, the rate of capital gains tax was 9% for individuals and 0% for companies.
Not all types of assets are "capital assets". Capital assets include: real estate; stock; bets in limited company, etc.
Dutch
Capital gains are generally exempt from taxes. However, exclusions apply to the following assets: o Capital gains realized on the disposal of business assets (including real estate) and on the disposal of other assets that qualify as income from independently carried out activities o Capital gains on corporate liquidation o Gain derived capital of the sale of a substantial interest in an enterprise (ie, 5% of the issued share capital)
Taxable income under Box 2 category includes dividends and capital gains from substantial shareholdings. (inkstrip uit aanmerkelijk stripes) (i.e., ownership interest of at least 5%) Income classified as Box 2 is taxable at a fixed rate of 25%.
Box 3: taxable income from savings and investments (ie real estate) Nevertheless, "theoretical capital outcome" of 4% is taxed at a rate of 30% (so 1.2%) but only if savings plus a person's stock exceeds the 25,000 threshold euro. It will be raised to the threshold of 30,000 euros by 2018, along with other changes so that people with less wealth, pay lower taxes.
In general one does not have to pay tax on capital gains. So if the primary residence is sold or shares sold, the profit is not taxable. This differs if the transaction (s) exceed (s) the normal asset management. In this case, capital gains are treated as income from other activities or even business income.
Relevant is: number of transactions - & gt; the more transactions the faster it is assumed that the activity exceeds the specific knowledge of individual asset management - & gt; if the individual is a professional trader, private transactions will be seen as taxable income faster than if the individual has no special knowledge or experience. jobs invested in assets - & gt; if property maintenance is handled by an external party, the activity can be seen as normal asset management, if the owner does all of his own maintenance and even renovation, the tax authority will argue that it is no longer the normal asset management.
So it depends on the actual facts and circumstances of how capital gains are treated. Even judges do not always decide the same thing.
New Zealand
New Zealand has no capital gains tax, but income tax may be levied on profits from the sale of private property and land acquired for resale purposes. This tax is widely avoided and is usually not enforced, possibly because of difficulties in proving intent at the time of purchase. However, there are several IRD cases that enforce the law; in 2004 the government raised $ 106.6 million to inspect property sales from Queenstown, Wanaka and some areas of Auckland.
Generally profits from frequent stock trading (aka day trading) will be considered taxable income. New Zealand's capital gains tax applies to foreign debt and equity investments.
In a speech delivered on June 3, 2009, New Zealand Finance Minister John Whitehead called for a capital gains tax to be included in New Zealand's tax system reform. The introduction of the capital gains tax is proposed by the Labor Party as the election campaign strategy in 2011 and 2014 elections.
On May 17, 2015, the ruling National Party announced it would tighten regulations to weigh gains on property sales. Beginning October 1, 2015, anyone who sells residential property within two years of purchase will be taxed on their marginal income tax rate. The seller's primary house will be released, as well as property inherited from the deceased's estate or transferred as part of the settlement of the relationship. To assist law enforcement, all buyers need to provide their IRD number on completion.
Norway
The individual capital gains tax in Norway is 27%. In many cases, there is no capital gains tax on the profit from the sale of your main house. This tax was introduced in 2006 through reforms that eliminated the "RISK-system", which was intended to avoid double piracy of capital. The new shareholder model, introduced in 2006, aims to reduce the difference in capital and labor taxation by charging dividends beyond a certain level as ordinary income. This means that focus is transferred from capital to individual and their income level. The system also introduces a reduction in allowances equal to the share acquisition value multiplied by the average rate for Treasury bills with a 3-month period adjusted for tax. The safeguard of interest will secure financial neutrality because it returns what the taxpayer will alternatively achieve in a secure passive capital placement that is exempt from additional taxes. The main purpose of benefits is to prevent adverse changes in investment and corporate financing structures as a result of dividend taxes. According to a paper describing the new policy, dividend taxes without such a shield can push pressure on the return on equity investment and direct Norwegian investors from equities to bonds, property, etc.
Philippines
There are 6% Capital Gain Tax and 1.5% Documentary Stamps on real estate disposal in the Philippines. While the Capital Income Tax is levied on the profits that the seller considers to be realized from the sale, exchange, or other disposition of capital assets located in the Philippines, including other forms of conditional sale, the Documentary Stamp Tax is levied on documents, instruments, loan agreements and paper that proves the receipt, assignment, sale or transfer of any property, title, or property incident. Both of these taxes are levied on the actual price the property has sold, or on the current Market Value, or on which Zonal Value is higher. The zonal assessment in the Philippines is governed by its tax collection agency, the Internal Revenue Bureau. Most often, real estate transactions in the Philippines are sealed higher than the corresponding Markets and Zonal values. As a standard process, the Capital Income Tax is paid by the seller, while the Document Stamp is paid by the buyer. However, one of the two parties can pay both taxes depending on the agreement they enter.
Tax Rates: 1 For real property
- 6%, higher than fair market value (zonal value or assessed value) and sale price
For Stocks that are Not Traded on Stock Exchanges
- No more than P100.000 - 5%
- Any amount more than P100.000 - 10%
Polish
Since 2004 there is one fixed tax rate (19%) on capital income. These include: selling stocks, bonds, mutual fund shares and also interest from bank deposits.
Portugal
There is a capital gains tax on the sale of houses and property. Any capital gain ( mais-valia ) arising taxable as income. For residents, this is a shear scale of 12 to 40%. However, for the population, taxable profits are reduced by 50%. Proven costs that have increased in value over the last five years can be reduced. For non-residents, capital gains are taxed at a 25% uniform rate. Capital gains arising from the sale of a house or residence, which is the primary residence chosen from the taxpayer or his family, is tax-exempt if total sales profits are reinvested in the acquisition of another house, residence or plot in Portugal.
In 1986 and 1987, Portuguese companies changed their capital structure by increasing the weight of equity capital. This is very well known in the companies quoted. In these two years, the government prepared a large number of tax incentives to promote equity capital and to encourage quotes on the Lisbon Stock Exchange. Until 2010, for shares held for more than twelve months, capital gains are waived. Capital gains from shares held for a shorter period of time may be subject to 10% tax.
From 2010 onwards, for residents, any capital gains from shares above EUR500 may be taxed at 20%. Investment funds, banks and companies are exempt from capital gains tax on shares.
By 2013, it's 28%.
Romanian
In Romania there are 16% fixed tax plus 5.5% health insurance from capital gains. Next year health insurance will increase to 8.9%. This also applies to real estate transactions but only if the property is sold less than three years from the date of its purchase.
Russian
There are no separate taxes for capital gains; on the other hand, gross profit or gains from the sale of assets are absorbed into the income tax base. Taxation of individual and corporate taxpayers is clearly different:
- The capital gains from individual taxpayers are tax-free if the taxpayer has assets for at least three years. Otherwise, the gain on sale of real estate and securities is absorbed into their personal income tax base and taxed 13% (residents) and 30% (non-residents). Tax residents are every individual who has been in the Russian Federation for more than 183 days in the past year.
- Capital gleaned from corporate taxpayers operating under the general tax framework is taxed as ordinary business profits at a 20% general rate, regardless of ownership period. Small businesses operating under the simplified tax framework pay taxes not on capital gains, but on gross receipts of 6% or 15%.
- Dividends that can be included in the gain on the release of securities are taxed at the source of 13% (resident) and 15% (non-residents) for both corporate and individual taxpayers.
Serbian
The capital gains are taxed 15% for the population and 20% for non-residents (based on tax assessment).
Sierra Leone
There is no capital gains tax in Sierra Leone.
Singapore
There is no capital gains tax in Singapore. For professional traders and traders, profits are regarded as revenues originating from Singapore and taxed.
Slovakia
Individuals pay capital gains tax 19% or 25%. In addition, as the scarcity of the world, they are also required to pay 14% of health insurance from capital gains.
South Africa
For legal persons in South Africa, 80% of their net profit will attract CGT and to 40% individual persons. Part of the net income will be taxed at their marginal tax rate. As an effective tax rate, this means a maximum effective rate of 16.4% (maximum maximum tax rate of 41%) for individuals paid, and for corporate taxpayers a maximum of 22.4%. Individual and annual special exemptions are R40 000.
South Korea
For individuals holding less than 3% of listed companies, there is only 0.3% trade tax for stock sales. Exchange of traded funds is exempt from any trade tax. For more than 3% of the shareholders of listed companies or for the sale of shares in unregistered companies, the capital gains tax in South Korea is 11% for the resident tax for the sale of shares in small and medium-sized companies. Tariffs of 22% and 33% apply under certain other circumstances. Those who have lived in Korea for less than five years are exempt from capital gains tax on foreign assets.
Spanish
Spanish capital gains tax from 1 January 2016
Individuals: All capital gains are subject to a maximum tax of 23% Company: Income taxable as income other income, maximum 25%
Sri Lanka
There is currently no capital gains tax in Sri Lanka.
Swedish
The capital gains tax in Sweden reached 30% on capital expenditure realization, depending on the type of depot. Traditionally, the capital gains tax in Sweden has been 30%.
Switzerland
There is no capital gains tax in Switzerland for natural persons in securities trading.
Exceptions are people who are considered "professional traders", who are treated as self-employed for tax purposes: capital gains are taxed as corporate earnings, taxed at enterprise level, and additional social contributions (AHV, currently at 10.25% level) must be paid on income. However such status is rather rare, decisions are made on a case-by-case basis by the tax authorities. A set of safe haven criteria formulated in 2012 that ensures negative status:
- holds every security for at least 6 months,
- low trading volume: total purchase price and sales proceeds of less than 500% of capital at the beginning of the year,
- the realization of capital gains generates less than 50% of revenue during the tax year,
- does not use foreign capital, or the interest paid on it is less than dividend income,
- Derivatives (especially options) are used solely to protect the risk of the portfolio itself.
For firms, capital gains are taxed as ordinary income at the enterprise level.
Real estate
Capital tax advantages levied on the sale of real estate properties in all cantons. Tax rules differ significantly by canton.
For natural persons, taxes generally follow a separate development of income taxes, reduced by the number of years held, and can often be postponed in cases such as inheritance or to purchase replacement homes. This tax is levied by cantons or municipalities only, no taxes at the federal level. However, natural persons who are involved in real estate trading professionally, can be treated as self-employed and taxed at a higher rate equal to the company and, in addition, social contributions are then payable.
For firms, capital gains are taxed as ordinary income at the federal level, and at cantonal and municipal levels, depending on the canton, either as ordinary income or on the development of a lower special tax, such as for an individual.
Taiwan
No taxes are collected from individual investors whose annual transactions are under T $ 1 billion ($ 33 ​​million). Transactions above T $ 1 billion will be taxed 0.1 percent.
Thai
There is no separate capital gains tax in Thailand. If capital gains appear outside Thailand then it is not taxable. All income received in Thailand from capital gains is taxed equal to ordinary income. However, if an individual earns a capital gain from security on the Thai Stock Exchange, it is exempt from personal income tax.
Turkish
Capital gain tax rate on stock certificates for the population is 0% in 2013 during the two-year holding period.
United Kingdom
History
Channon observes that one of the main drivers for the introduction of CGT in the UK is the rapid growth in property values ​​post-World War II. This causes property developers to deliberately leave office blocks empty so that rental income can not be built and greater capital gains are generated. The capital gains tax system was introduced by chancellor James Callaghan in 1965
Basics
Individuals who are residents or ordinary residents in the UK (and trustees of various faiths) are subject to a capital gains tax of 18%.
For people who pay more than the basic income tax rate, this increases to 28% from June 23, 2010.
There are exceptions such as for primary personal residence, ownership in ISA or gilts. Certain other benefits are allowed to be rolled out after reinvestment. Investments in some new companies are also exempt from CGT. Entrepreneurs' help allows lower CGT levels (10%) to be paid by people who have been involved for a year with trading companies and owns 5% or more of share ownership.
Stocks in companies with trade properties qualify for the help of employers, but not investment properties.
Each individual has a capital gains tax allowance per annum: profits under allowances are exempt from tax, and capital losses can be set against capital gains in other holdings before taxes. All individuals are exempt from tax to a certain amount of capital gains per year. For the 2015/16 tax year, this "annual exemption" is Ã, Â £ 11,100.
Company records
The company is subject to a corporate tax on "profits imposed" (amounts calculated along the line of capital gains tax in the UK). The company can not claim a taper reduction, but can claim an indexation allowance to offset the effects of inflation. The exclusion of substantial shareholding of the company was introduced on April 1, 2002 for the ownership of 10% or more of the shares in other companies (30% or more for shares owned by long term life insurance company insurance funds). This is effectively a form of liberation of British participation. Almost all corporate taxes derived from the income charged are paid by the life insurance company subject to tax on the basis of I minus E.
The rules governing the taxation of capital gains in the United Kingdom for individuals and companies are set forth in the Taxation of the 1992 Deferred Gain Act.
Background changed to 18% rate
In the October 2007 Chancellor's Autumn Statement, a draft proposal was announced which would change the prevailing rate of CGT as of April 6, 2008. Under this proposal, the individual's annual exemptions will continue but reduce the taper will cease and one rate of capital gains tax at 18% will be applied for profit charged. This new single tariff will replace the individual income tax rate (Income Tax) for CGT purposes. The change was introduced, at least in part, because the British government feels that private equity firms make excess profits by benefiting from the overly generous taper reduction in business assets.
Changes were criticized by a number of groups including the Federation of Small Businesses, who claimed that the new rules would increase CGT's liability from small businesses and prevent entrepreneurship in Britain. At the time of the proposal there were concerns that the changes would lead to massive asset sales before the start of the 2008-09 tax year to benefit from existing taper reductions. Capital Gains Tax rose to 28% on June 23, 2010 at 00:00.
Historical
Individuals pay capital gains tax at their highest marginal income tax rate (0%, 10%, 20% or 40% in fiscal year 2007/8) but from 6 April 1998 able to claim taper relief profits that are subject to a capital gains tax (reducing the effective tax rate), depending on whether the asset is a "business asset" or "non-business asset" and a period of ownership. Taper relief provides a reduction of up to 75% (leaving 25% taxable) in taxable profits for business assets, and 40% (leaving 60% taxable), for non-business assets, to individuals. Taper relief replaces an indemnification allowance for the individual, which can still be claimed for assets held before April 6, 1998 from the date of purchase until that date, but abolished on April 5, 2008.
United States
In the United States, with certain exceptions, individuals and companies pay income taxes on net totals from all of their capital gains. Short-term capital gains are taxed at a higher rate: regular income tax rates. The tax rate for individuals using "long-term capital gains", which are the gain on assets held for more than one year before sale, is lower than the regular income tax rate, and in some tax brackets there is no tax to be paid. on such an advantage.
The tax rate on long-term benefits was reduced in 1997 through the Taxpayer Assistance Act of 1997 from 28% to 20% and again in 2003, through Employment and Reconciliation Law of Tax Benefits of 2003, from 20% to 15 % for individuals the highest tax bracket is 15% or more, or from 10% to 5% for individuals in the two lowest income tax brackets (the highest tax bracket is less than 15%). (See progressive tax.) A 15% reduction in tax rate on dividends and eligible capital gains, previously scheduled to expire in 2008, is extended to 2010 as a result of the Tax Incidence Prevention and Reconciliation Act signed into law by President Bush on May 17, 2006, which also reduced the 5% level to 0%. Toward the end of 2010, President Obama signed a law that extends the rate of dividend reduction that is eligible until the end of 2012.
The law allows individuals to defer capital gains taxes with tax planning strategies such as structured sales (sales repayment payments), charity trust (CRT), installment sales, private confidence annuities, and exchanges 1031. The United States, unlike almost all other countries, collect taxes on their inhabitants (with some exceptions) on their income worldwide wherever in the world they are. Americans therefore find it difficult to take advantage of personal tax haven. Although there are several overseas bank accounts that advertise as tax havens, US law requires reporting earnings from those accounts, and a deliberate failure to do so is tax evasion.
Delay or reduce the capital gain tax
Taxpayers can delay capital gains taxes only by delaying asset sales. In addition, depending on the national tax law's specifications, the taxpayer may be able to delay, reduce or avoid capital gains tax using the following strategies:
- A nation may impose a tax on a lower rate of investment profits in a preferred industry or sector, such as a small business.
- There may be an account with tax-favored status. The advantage of letting the most profitable accumulates in the account without taxes; taxes are paid only when the taxpayer withdraws funds from the account.
- Selling assets with losses can create "tax losses" that can be applied to offset future realized gains, and avoid or reduce taxes on those profits. Tax loss is a business asset, but a business should avoid "fraudulent" transactions, such as selling to yourself or a subsidiary with no legitimate purpose other than to make a tax loss.
- The tax can be revoked if the asset is given to the charity.
- The tax may be suspended if the taxpayer sells the asset but receives payment from the buyer for several years. However, the taxpayer bears the risk of default by the buyer during the period. Structured sales or purchases of an annuity can be a way to suspend taxes.
- In certain transactions, the base (original cost) of the asset is changed. In the US, the basis for inherited assets becomes their value at the time of inheritance.
- The tax may be suspended if the asset seller places funds into a "similar" asset purchase. In the US, this is called the 1031 exchange and is now generally only available for real estate related businesses and tangible properties.
References
Further reading
- Black, Stephen (2011). "A Capital Gains Anomalies: Commissioner v. Bank and Results of the Lawsuit". St. Mary Law Journal . 43 : 113. SSRNÃ, 1858776 .
External links
- The Labyrinth of Capital Gets Tax Policy: A Guide to the Confused (1999), Brookings Institution
Source of the article : Wikipedia
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