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Capital Gains Tax on EQUITIES
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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sparkly wrote:whiteowl wrote:My payout has just checked in.Only 1.83% deducted n no CGT. Paragraph 20 of the 8th Schedule to the ITA: A stockbroker who fails to collect and remit as required under paragraph 18, the amount of income tax out of the proceeds (over which he has control) accruing as a result of the transfer of investment shares is jointly and severally liable with the transferor of the shares for payment of the tax.KRA can go for the broker or come for you. Woiiii....  possunt quia posse videntur
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Rank: New-farer Joined: 9/12/2014 Posts: 22 Location: Nairobi
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Kihara joni wrote:Okay, so I bought Mumias in 7 lots, 1.50, 1.75, 1.90, 1.85,1.60,1,95 & 2.00/- so if I sell how will they calculate this? what I see is the KRA being KRA taking the lowest buying price as the price of all the shares and working with that... i think they will use the average to calculate there dues 
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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koxwex wrote:Kihara joni wrote:Okay, so I bought Mumias in 7 lots, 1.50, 1.75, 1.90, 1.85,1.60,1,95 & 2.00/- so if I sell how will they calculate this? what I see is the KRA being KRA taking the lowest buying price as the price of all the shares and working with that... i think they will use the average to calculate there dues Nope, They will use the actual acquisition costs.As sparkly said, you are supposed to keep records. What I'm not sure on about the equities capital gain is the requirement for the tax payer to do a self assessment of the gain to be taxed yet they require the broker to automatically deduct the capital gain and submit to KRA. Going by lack of information by most people as expressed on this thread, a witty broker might just be able to make money off people by filling in fictitious CGT form on behalf of the seller If Obiero did it, Who Am I?
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Rank: Member Joined: 3/26/2012 Posts: 830
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Swenani wrote:koxwex wrote:Kihara joni wrote:Okay, so I bought Mumias in 7 lots, 1.50, 1.75, 1.90, 1.85,1.60,1,95 & 2.00/- so if I sell how will they calculate this? what I see is the KRA being KRA taking the lowest buying price as the price of all the shares and working with that... i think they will use the average to calculate there dues Nope, They will use the actual acquisition costs.As sparkly said, you are supposed to keep records. What I'm not sure on about the equities capital gain is the requirement for the tax payer to do a self assessment of the gain to be taxed yet they require the broker to automatically deduct the capital gain and submit to KRA. Going by lack of information by most people as expressed on this thread, a witty broker might just be able to make money off people by filling in fictitious CGT form on behalf of the seller It is as simple as adopting the system of any commonwealth country that has capital gains tax on equities...no need for thinking much while there may be a country with a solution already. KRA kazi kwenyu!! A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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What annoyed me is mr.rotich's perception that equities are traded by rich pple,he sounded very mis informed and lost.if they cared for the local hustler they could have fixed the tax to apply for a gain exceeding 500k or even 200k "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 3/26/2012 Posts: 830
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mlennyma wrote:What annoyed me is mr.rotich's perception that equities are traded by rich pple,he sounded very mis informed and lost.if they cared for the local hustler they could have fixed the tax to apply for a gain exceeding 500k or even 200k Thats unfair still...the tax should be on a gain exceeding 2 million. Any gain above 2 million would effectively net rich jamaas and foreigners but not Wanjiku A successful man is not he who gets the best, it is he who makes the best from what he gets.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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S.Mutaga III wrote:mlennyma wrote:What annoyed me is mr.rotich's perception that equities are traded by rich pple,he sounded very mis informed and lost.if they cared for the local hustler they could have fixed the tax to apply for a gain exceeding 500k or even 200k Thats unfair still...the tax should be on a gain exceeding 2 million. Any gain above 2 million would effectively net rich jamaas and foreigners but not Wanjiku Thanks for sharing a similar opinion "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: 7,912
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S.Mutaga III wrote:mlennyma wrote:What annoyed me is mr.rotich's perception that equities are traded by rich pple,he sounded very mis informed and lost.if they cared for the local hustler they could have fixed the tax to apply for a gain exceeding 500k or even 200k Thats unfair still...the tax should be on a gain exceeding 2 million. Any gain above 2 million would effectively net rich jamaas and foreigners but not Wanjiku Do you think someone who taxes milk, medicine and other basic things cares about Wanjiku? They want to SEEM as if the care about Wanjiku but they DON'T. They know exactly what they are doing. 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: Member Joined: 2/20/2007 Posts: 767
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MaichBlack wrote:S.Mutaga III wrote:mlennyma wrote:What annoyed me is mr.rotich's perception that equities are traded by rich pple,he sounded very mis informed and lost.if they cared for the local hustler they could have fixed the tax to apply for a gain exceeding 500k or even 200k Thats unfair still...the tax should be on a gain exceeding 2 million. Any gain above 2 million would effectively net rich jamaas and foreigners but not Wanjiku Do you think someone who taxes milk, medicine and other basic things cares about Wanjiku? They want to SEEM as if the care about Wanjiku but they DON'T. They know exactly what they are doing. Let's face it, we are a country run by educated people who lack basic wisdom or are so corrupt they cannot think far. I guess it's the latter. How do you impose a tax like CGT without clarifying the base year. Some people have shares and land inherited for generations. How will CGT be calculated for land one has held for ,50 yrs and now decides to sell. I suspect the reason for such lackadaisical approach to legislation is so that Wanjiku gets slaughtered while the rich who can hire lawyers to defend their interests will go Scot free. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 5/6/2014 Posts: 268 Location: Nairobi, Kenya
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koxwex wrote:Kihara joni wrote:Okay, so I bought Mumias in 7 lots, 1.50, 1.75, 1.90, 1.85,1.60,1,95 & 2.00/- so if I sell how will they calculate this? what I see is the KRA being KRA taking the lowest buying price as the price of all the shares and working with that... i think they will use the average to calculate there dues I quote here:"Where a pool of securities acquired at different dates and at different prices are sold, the adjusted cost will be computed on a First in – First out (FIFO) basis. However, the Commissioner may give further guidance on case by case basis."
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Capital Gains Tax on EQUITIES
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