Capital gains tax
Countries that do not impose a capital gains tax include Bahrain, Barbados, Belize, the Cayman Islands, the Isle of Man,[1] Jamaica,[2] New Zealand, Sri Lanka, Singapore, and others.
The international capital market that has hugely developed in the past few decades (in the 2nd half of the 20th century) is helping countries to deal with some gaps between investments and savings.
A study from 1992, which may be outdated due to technological advancements, found that American taxpayers who received capital gains income incurred higher compliance costs than those who did not.
A more recent study from the Journal of Public Economics[11] provides support for Poterba's work with evidence from a unique data set of shareholder information from the 1989 leveraged buyout of RJR Nabisco.
When you sell assets (typically upon ceasing ownership), a CGT event is triggered, and you must disclose capital gains and losses in your income tax return.
But a roll-over relief is granted if, and as long as, the gain is booked in a separate reserve account on the balance sheet and is not used for distribution or allocation of any kind.
A Capital Gains tax was first introduced in Canada by Pierre Trudeau and his finance minister Edgar Benson in the 1971 Canadian federal budget.
Nevertheless, it is noted that there have been cases where QFIIs withdraw capital from China after paying 10% withholding tax on gains derived through share trading over the years on a transaction-by-transaction basis.
With respect to Circular 698 itself, there are views that it is not consistent with the Enterprise Income Tax Law as well as double taxation treaties signed by the Chinese government.
A French tax representative will be mandatory for non-residents who sell a property for an amount over 150.000 euros or who own the real estate for more than 15 years.
In January 2009, Germany introduced a very strict capital gains tax (called Abgeltungsteuer in German) for shares, funds, certificates, bank interest rates etc.
Instruments bought before this date are exempt from capital gains tax (assuming that they have been held for at least 12 months), even if they are sold in 2009 or later, barring a change of law.
Deductions of expenses such as custodian fees, travel to annual shareholder meetings, legal and tax advice, interest paid on loans to buy shares, etc., are no longer permitted starting in 2009.
Other sources say there is no tax in the case of capital gain from trading in the stock market as long as the individual owns less than 0.5% of the publicly listed company.
Similarly, an employee leaving Hong Kong can incur double taxation on the unrealized capital gains of their vested shares.
Until 31 January 2017, all Long term capital gains from equities were exempt as per section 10 (38) if shares are sold through recognized stock exchange and Securities Transaction Tax (STT) is paid on the sale.
STT in India is currently between 0.017% and 0.1% of total amount received on sale of securities through a recognized Indian stock exchange like the NSE or BSE.
However, if equities are held for less than one year and is sold through recognised stock exchange then short term capital gain is taxable at a flat rate of 15% u/s 111A and other surcharges, educational cess are imposed.(w.e.f.
The absence of indexation relief for transactions on assets acquired since 2003 means that the headline rate of 33% is not directly comparable and is higher than would otherwise be the case in jurisdictions where inflation is taken into account.
However, there were a few cases of the IRD enforcing the law; in 2004 the government gathered $106.6 million checking on property sales from Queenstown, Wanaka and some areas of Auckland.
The Working Group's chairman Cullen claimed that the capital gains tax would raise NZ$8.3 billion over the next five years, which would be invested into increased social security benefits.
The new shareholder model, introduced in 2006, aims to reduce the difference in taxation of capital and labor by taxing dividends beyond a certain level as ordinary income.
This system also introduced a deductible allowance equal to the share's acquisition value times the average rate for Treasury bills with a 3-month period adjusted for tax.
Shielding interest shall secure financial neutrality in that it returns the taxpayer what he or she alternatively would have achieved in a safe, passive capital placement exempt from additional taxation.
In these two years, the government set up a large number of tax incentives to promote equity capital and to encourage the quotation on the Lisbon Stock Exchange.
However, natural persons involved in real estate trading in a professional manner may be treated as self-employed and taxed at higher rates similarly to a company and, additionally, social contributions would then need to be paid.
[90] Channon observes that one of the primary drivers to the introduction of CGT in the UK was the rapid growth in property values post World War II.
This led to property developers deliberately leaving office blocks empty so that a rental income could not be established and greater capital gains made.
The changes were introduced, at least in part, because the UK government felt that private equity firms were making excessive profits by benefiting from overly generous taper relief on business assets.
[96] At the time of the proposals there was concern that the changes would lead to a bulk selling of assets just before the start of the 2008–09 tax year to benefit from existing taper relief.
