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Capital Gains Tax on EQUITIES
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ProverB
#1 Posted : Tuesday, November 11, 2014 11:48:40 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
With
the CGTax expected to go into effect at Midnight, 1st January, 2015..
Would anyone know whether:

1. 1st January 2015 will be the effective base date against which the
the gains to be taxed will be measured. Or,

2. Will gains be measured against cost of acquisition..which means back
dating gains to date which you bought/acquired the shares..which is period when CGTax wasn't applicable?
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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  | | Edit by user: Wednesday, November 12, 2014 12:02 AM | Reason: Not specified
jawgey
#2 Posted : Wednesday, November 12, 2014 7:42:18 AM
Rank: Member

Joined: 1/13/2014
Posts: 398
Location: Denmark
ProverB wrote:
With
the CGTax expected to go into effect at Midnight, 1st January, 2015..
Would anyone know whether:

1. 1st January 2015 will be the effective base date against which the
the gains to be taxed will be measured. Or,

2. Will gains be measured against cost of acquisition..which means back
dating gains to date which you bought/acquired the shares..which is period when CGTax wasn't applicable?


I think it will apply from the date you acquired the shares (backdating) just like it will apply to land
Seeing is believing
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VituVingiSana
#3 Posted : Wednesday, November 12, 2014 8:01:36 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,378
Location: Nairobi
jawgey wrote:
ProverB wrote:
With
the CGTax expected to go into effect at Midnight, 1st January, 2015..
Would anyone know whether:

1. 1st January 2015 will be the effective base date against which the
the gains to be taxed will be measured. Or,

2. Will gains be measured against cost of acquisition..which means back
dating gains to date which you bought/acquired the shares..which is period when CGTax wasn't applicable?


I think it will apply from the date you acquired the shares (backdating) just like it will apply to land

Do NOT assume anything. KRA has a nasty way of using illogical means to screw you over. It's a pity that the rules to calculate CGT have not been formulated, debated and published.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Sober
#4 Posted : Wednesday, November 12, 2014 8:04:31 AM
Rank: Elder

Joined: 11/27/2007
Posts: 3,604
jawgey wrote:
ProverB wrote:
With
the CGTax expected to go into effect at Midnight, 1st January, 2015..
Would anyone know whether:

1. 1st January 2015 will be the effective base date against which the
the gains to be taxed will be measured. Or,

2. Will gains be measured against cost of acquisition..which means back
dating gains to date which you bought/acquired the shares..which is period when CGTax wasn't applicable?


I think it will apply from the date you acquired the shares (backdating) just like it will apply to land


will they consider setting off of losses? I am not supporting the idea as it will lead to capital flight
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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ProverB
#5 Posted : Wednesday, November 12, 2014 9:30:26 AM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
Just found out from Nikhil Hira that CGT will be on gains accrued over and above cost of acquisition. ..no matter when you acquired them.
They will not rebase to 1st Jan 2015. And on that note.. Time to protect
gains by cashing in. Sad
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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  | | Edit by user: Wednesday, November 12, 2014 9:33 AM | Reason: Not specified
mlennyma
#6 Posted : Wednesday, November 12, 2014 9:35:22 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
The taxing nation, we pay taxes on dividends,whats all this crap, why cant this broke gvt squeeze its tax from the 2% being deducted already or make the 5% be inclusive of all brokers fees/all commissions?
"Don't let the fear of losing be greater than the excitement of winning."
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  | | Edit by user: Wednesday, November 12, 2014 9:39 AM | Reason: Not specified
vickii
#7 Posted : Wednesday, November 12, 2014 10:07:21 AM
Rank: New-farer

Joined: 3/13/2014
Posts: 16
Just wondering what will happen when they push it further from 5% to 10% and so on... Hopefully the brokers should start making noise early to prevent further increases down the line if not scrapping it all together. From another angle,the foreigners are being enticed to invest by scrapping the 75% cap and the lot are accustomed to taxes. seems to me they dont care so much about enticing the local investors anymore....
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obiero
#8 Posted : Wednesday, November 12, 2014 6:58:53 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,321
Location: nairobi
what happens to those who bought into home afrika and have been averaging down on a daily basis, is there a capital loss tax?? serikali iwasaidie by payin them for their attempt in investment :)
COOP, IMH, KEGN, KQ, MTNU
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ike
#9 Posted : Thursday, November 13, 2014 12:01:24 PM
Rank: Member

Joined: 7/2/2014
Posts: 123
and will dividends acquired be calculated as part of capital gain?
,
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ProverB
#10 Posted : Thursday, November 13, 2014 12:07:43 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
ike wrote:
and will dividends acquired be calculated as part of capital gain?

No. Dividends are periodic payments and are not determined by investor. They are already subject to a withholding tax of 5%.
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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