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Capital Gains Tax on EQUITIES
Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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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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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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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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Rank: Chief Joined: 1/3/2007 Posts: 18,098 Location: Nairobi
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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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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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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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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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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.  ..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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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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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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Rank: New-farer Joined: 3/13/2014 Posts: 16
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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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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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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 :)
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 7/2/2014 Posts: 123
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and will dividends acquired be calculated as part of capital gain? ,
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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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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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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I think dividend payment is done withholding the tax applicable it can't be double taxation "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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One thing is highly probable.. Once the CGTax goes into effect, 15thJanuary as per PKF advisory, it will wipe out supply from market as investors, in fear of losing their capital gains to tax charges, and the uncertainty around the cgt administration, choose to hold on longer. Subsequent Demand vs the almost no-Supply issues will usher in some sort of price run 2015 will be a good year as everyone gets forced into bein some sort of long term investor. Short term traders will be forced to quote higher prices while at the same time factoring in tax charges on their sale quotes. ..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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Rank: Member Joined: 1/15/2010 Posts: 625
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ProverB wrote: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. So basically people should cash out then get back into their positions. It doesn't make much sense. But I think I will stay put and pay that 5% if it comes to that. I think we make money too easily on this NSE and the taxes should definitely be higher than they are. Low taxes in stock markets are one of the big causes of inequality. The guys at the bottom earning say 20k a month get taxed higher for their hard earned cash than the lot of speculators. The 20k should be getting off tax free and the speculators paying casino like taxes.
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Rank: Member Joined: 6/14/2010 Posts: 521 Location: Nairobi
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They have advertised on dailies today. 1st Jan is the date
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Does it affect me who bought KCB at Kshs 28 pre bonus days???????????
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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After looking at this CGT curveball I'm beginning to see the opposite of the crowd. If I'm reading it right gok will need the market to meltup so that they can take their loot. If so, the meltup will be sizable! Some listings/IPO will definitely be fantastic... Watch mpesa bank. This is where it's likely to begin... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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How will this CGT affect proti? What will happen to transfers made after 31-Dec-2015? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 7/13/2010 Posts: 160 Location: rift Valley-Naks
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How is capital gains going to be computed for someone who inherited shares? Considering that at some point these shares were inform of certificates before being immobilized. ''i can calculate the motion of heavenly bodies,but not the madness of people''-Isaac Newton
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Rank: Member Joined: 8/29/2008 Posts: 571
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tkzee wrote:How is capital gains going to be computed for someone who inherited shares? Considering that at some point these shares were inform of certificates before being immobilized. Kazee,form a limited liability company and transfer or sell your shares to your company before january first....
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Rank: User Joined: 9/6/2013 Posts: 1,446 Location: In a house
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Ali Baba wrote:tkzee wrote:How is capital gains going to be computed for someone who inherited shares? Considering that at some point these shares were inform of certificates before being immobilized. Kazee,form a limited liability company and transfer or sell your shares to your company before january first.... I'm interested though the whole process might spill over to January and possibly beyond. If that is done, does it mean that I'll never pay the 5% tax on CG?
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Capital Gains Tax on EQUITIES
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