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Capital Gains Tax on EQUITIES
Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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urstill1 wrote: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? Does this 5% thing apply to land ownership transfer? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 6/14/2010 Posts: 521 Location: Nairobi
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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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.... If you inherited, you pay the 5% if you sell. You can also let your kids inherit, no CGT payable. Life is short. Live passionately.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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This CGT will affect everyone acheni maswali.... possunt quia posse videntur
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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Brokers are playing hard ball!!!Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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I cannot also cooperate to pay this unless its deducted before it reaches me or iam followed by kra to my house at gunpoint...Rwanda is very keen to take advantage of our taxation stupidity and woo investors to their house by removing taxes which hinder investment "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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mlennyma wrote:I cannot also cooperate to pay this unless its deducted before it reaches me or iam followed by kra to my house at gunpoint Habari ndiyo hiyo!!! They will be forced to contract (and pay) the brokers to be collecting agents! Or they can force in some regulations that forces the broker to collect and forward like happens with VAT and PAYE. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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I sold a small chunk of my Britam shares and CGT wasn't part of the discussion. Unless kra puts a knife on my neck on Wednesday when I'm getting my cash,hii kitu silipi! How can I pay CGT when my broker doesn't have records of my buying price and I'm also suffering from a memory lapse?
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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The market will not be as liquid as we are used to,the worst thing that has ever happened in my nse life. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 7/3/2014 Posts: 245
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Not so fast Quote:“A stockbroker who conducts the transfer of investment shares on behalf of a transferor shall collect and remit tax to the commissioner in accordance with section 35(5),” reads paragraph 18 of the eighth schedule. Link is below. Brokers obligated to collect capital gains tax, KRA saysIn the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Once the players get settled psychologically things will go back to normal.
What is the difference of selling at 5% less than expected with no CGT and selling at 5% higher and paying the CGT.
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Rank: Member Joined: 5/6/2014 Posts: 268 Location: Nairobi, Kenya
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streetwise wrote:Once the players get settled psychologically things will go back to normal.
What is the difference of selling at 5% less than expected with no CGT and selling at 5% higher and paying the CGT.
The earlier pays the 'seed' to KRA, the latter assists the stocks buyer get a 5% discount
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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streetwise wrote:Once the players get settled psychologically things will go back to normal.
What is the difference of selling at 5% less than expected with no CGT and selling at 5% higher and paying the CGT.
He that sells are 5% higher and pays CGT earns more. #splittinghairs Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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You needed atmost 2.5% to count your eggs before,now you need 7.5 % to count anything,its a big jump. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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TheGeek wrote:Not so fast Quote:“A stockbroker who conducts the transfer of investment shares on behalf of a transferor shall collect and remit tax to the commissioner in accordance with section 35(5),” reads paragraph 18 of the eighth schedule. Link is below. Brokers obligated to collect capital gains tax, KRA says But, but.. Pesa Nane plans to be shilingi when he grows up.
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Rank: Veteran Joined: 3/26/2012 Posts: 985 Location: Dar es salaam,Tanzania
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mlennyma wrote:You needed atmost 2.5% to count your eggs before,now you need 7.5 % to count anything,its a big jump. CGT is on gains so its 2.5% of total cost plus 5% of gains ..how do you get your 7.5% ?
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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You needed atmost 2.5% to count your eggs before,now you need 7.5 % to count anything,its a big jump.
HAPANA
This is the maths. If you gain 2.5% as before you will pay 5% CGT on the 2.5%.
This translates to about 0.125%, so you should be saying the your need atleast 2.625%. Simplify 2.7% is good to go
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Metasploit wrote:mlennyma wrote:You needed atmost 2.5% to count your eggs before,now you need 7.5 % to count anything,its a big jump. CGT is on gains so its 2.5% of total cost plus 5% of gains ..how do you get your 7.5% ? I know of 1.82% and 2.1% for shate tranctions of >100,000/= and upto 10,000/= respectively. The opposite of courage is not cowardice, it's conformity.
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Rank: Member Joined: 6/14/2010 Posts: 521 Location: Nairobi
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Metasploit wrote:mlennyma wrote:You needed atmost 2.5% to count your eggs before,now you need 7.5 % to count anything,its a big jump. CGT is on gains so its 2.5% of total cost plus 5% of gains ..how do you get your 7.5% ? Hii mahesabu inasumbua watu kweli.
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Rank: Member Joined: 6/14/2010 Posts: 521 Location: Nairobi
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whiteowl wrote:I sold a small chunk of my Britam shares and CGT wasn't part of the discussion. Unless kra puts a knife on my neck on Wednesday when I'm getting my cash,hii kitu silipi! How can I pay CGT when my broker doesn't have records of my buying price and I'm also suffering from a memory lapse? Read the business daily today.The Records are available for transactions made from 2005 onwards. For transactions made before then, the base price will be the highest price achieved before 2005. And KRA has instructed Brokers to collect CGT for Friday and Monday before making payments. #NotSoLucky
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Capital Gains Tax on EQUITIES
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