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Capital Gains Tax on EQUITIES
Rank: Elder Joined: 2/26/2012 Posts: 15,980
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kimugaman wrote:murchr wrote:When is the term ending for Njiraini, the guy has proved that he cannot think out of the box. I wonder how much he's been able to collect from the other taxes on the NSE I don't think it is Njiraini's fault. The law was passed, he is just the enforcer. But he should communicate clearly on how tax is to be collected and calculated under every scenario. Not just demand it. The MPs we elected passed this law. And the president we elected, signed it into law. It is him who proposed it as a measure of getting more money from the coffers. He needs to be more creative if not, step down "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 7/1/2014 Posts: 903 Location: sky
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im shocked that my broker is deducting capital gain tax, i thought the issue is yet to be resolved, i transfered my sale proceeds last week and as i was checking my statement today a sizeable amount is deducted as capital gain tax!! is it that a loss in one stock cannot offset part of the gains in other stocks even if you sell at the same time? eg IF share A gain is 200,000, share B gain is 30,000 and share C loss of 70,000 why should they ignore the loss in share C ?? There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Elder Joined: 8/16/2011 Posts: 2,296
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Our greedy and shortsighted parliament never saw the repercussions of making it a law to surcharge capital gain tax. You don't, kill a business for the sake of few coins especially in Kenya where people carry tax like underwear.
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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littledove wrote:im shocked that my broker is deducting capital gain tax, i thought the issue is yet to be resolved, i transfered my sale proceeds last week and as i was checking my statement today a sizeable amount is deducted as capital gain tax!!
is it that a loss in one stock cannot offset part of the gains in other stocks even if you sell at the same time? eg IF share A gain is 200,000, share B gain is 30,000 and share C loss of 70,000
why should they ignore the loss in share C ??
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Rank: Member Joined: 7/3/2014 Posts: 245
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littledove wrote:im shocked that my broker is deducting capital gain tax, i thought the issue is yet to be resolved, i transfered my sale proceeds last week and as i was checking my statement today a sizeable amount is deducted as capital gain tax!!
is it that a loss in one stock cannot offset part of the gains in other stocks even if you sell at the same time? eg IF share A gain is 200,000, share B gain is 30,000 and share C loss of 70,000
why should they ignore the loss in share C ?? There is a form called CG2( http://www.kra.go.ke/ind...-declaration-forms-cgt2) On your trading online account go to your statement and download it. fill separate forms for each stock you have sold. the form is straightforward and your tax due will be evident for each sale. present your broker with these forms and maybe you will get some money back. In 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: Elder Joined: 12/7/2012 Posts: 11,908
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I like my broker, they only charge you this tax if you want payment. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Angelica _ann wrote:I like my broker, they only charge you this tax if you want payment. I would love to know your broker , what's name
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Rank: Member Joined: 8/16/2012 Posts: 660
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Mr. Rotich wrote: 142. We also reinstated Mr. Speaker, the Capital Gains Tax last year so as to allow property and share owners to make their fair contribution to the exchequer. However, the implementation of the law has faced some challenges in some sectors of the economy. In order to address these challenges and ensure enforceability and compliance, I propose to remove the 5 percent tax on capital gains arising from sale of shares and introduce a 0.3 percent withholding tax on the transaction value of the shares. So the questions is: Which value is higher, a transactional based 0.3% or the gains based 5%? They all 'dine' at 6% . A gain of 6% taxed at 5% is 0.3% of the transaction value.
With gains below 6% you were better off taxed 5% of your gain value. Gains above 6% wholly welcome the 0.3% transaction value whtLive and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Museveni wrote:Mr. Rotich wrote: 142. We also reinstated Mr. Speaker, the Capital Gains Tax last year so as to allow property and share owners to make their fair contribution to the exchequer. However, the implementation of the law has faced some challenges in some sectors of the economy. In order to address these challenges and ensure enforceability and compliance, I propose to remove the 5 percent tax on capital gains arising from sale of shares and introduce a 0.3 percent withholding tax on the transaction value of the shares. So the questions is: Which value is higher, a transactional based 0.3% or the gains based 5%? They all 'dine' at 6% . A gain of 6% taxed at 5% is 0.3% of the transaction value.
With gains below 6% you were better off taxed 5% of your gain value. Gains above 6% wholly welcome the 0.3% transaction value wht Now surely who sells at 6%? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 8/16/2012 Posts: 660
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murchr wrote:Museveni wrote:Mr. Rotich wrote: 142. We also reinstated Mr. Speaker, the Capital Gains Tax last year so as to allow property and share owners to make their fair contribution to the exchequer. However, the implementation of the law has faced some challenges in some sectors of the economy. In order to address these challenges and ensure enforceability and compliance, I propose to remove the 5 percent tax on capital gains arising from sale of shares and introduce a 0.3 percent withholding tax on the transaction value of the shares. So the questions is: Which value is higher, a transactional based 0.3% or the gains based 5%? They all 'dine' at 6% . A gain of 6% taxed at 5% is 0.3% of the transaction value.
With gains below 6% you were better off taxed 5% of your gain value. Gains above 6% wholly welcome the 0.3% transaction value wht Now surely who sells at 6%? This was for those who might be wondering which was better: the fraction of the transactipn value or tax on profits booked Also, when cutting losses, that 6% is break even factoring other transaction costs. Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Member Joined: 8/5/2011 Posts: 125
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Another reason why one should be careful with frequent trading...
Another reason for long term investing
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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NSE investors told to pay capital taxQuote:The taxman has ordered investors at the Nairobi Securities Exchange (NSE) to continue paying capital gains tax until the end of the year, ushering in more bad news for a bear market.
“The Finance Bill 2015 has proposed the introduction of a withholding tax at 0.3 per cent of the gross transaction value on the sale of listed securities effective January 1, 2016.
   $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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My thinking is that this will only reduce the supply in the market as guys wait for 1st jan 2016 Seeing is believing
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Rank: New-farer Joined: 5/15/2015 Posts: 26
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Just to be clear, so that I understand.
If I sell shares and the value of the sale of my shares is 100,000. The stock broker will keep 0.3 from January 2016? Yani 0.3/100 x 100,000 = KSH 300.
This is regardless of if shares went up or down. Just multiply 0.3/100 X <value of shares sold>. Is this correct? If so, this is chump change. I can even add another 300 for bus fare for KRA clerks. he he he.
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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jawgey wrote:My thinking is that this will only reduce the supply in the market as guys wait for 1st jan 2016 Buy buy buy not sell
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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kimugaman wrote:Just to be clear, so that I understand.
If I sell shares and the value of the sale of my shares is 100,000. The stock broker will keep 0.3 from January 2016? Yani 0.3/100 x 100,000 = KSH 300.
This is regardless of if shares went up or down. Just multiply 0.3/100 X <value of shares sold>. Is this correct? If so, this is chump change. I can even add another 300 for bus fare for KRA clerks. he he he. Yes. But punitive since the transaction tax doesn't care if your investment is profitable or not.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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hisah wrote:kimugaman wrote:Just to be clear, so that I understand.
If I sell shares and the value of the sale of my shares is 100,000. The stock broker will keep 0.3 from January 2016? Yani 0.3/100 x 100,000 = KSH 300.
This is regardless of if shares went up or down. Just multiply 0.3/100 X <value of shares sold>. Is this correct? If so, this is chump change. I can even add another 300 for bus fare for KRA clerks. he he he. Yes. But punitive since the transaction tax doesn't care if your investment is profitable or not. @hisah this man kimuga (guard) suggests collectiveness not bothering kinds. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Member Joined: 8/17/2007 Posts: 294
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I gather CGT has been abolished and will not be charged even next year! This should spur some buying activity... RiNK
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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instinct wrote:I gather CGT has been abolished and will not be charged even next year! This should spur some buying activity... RiNK Suspension starts from Jan 1 2016.
This is what happens when govt has no clue on what it's doing. CGT now applies to OTC. The UAP deal must have informed this poor decision. Let's tax an illiquid market!? Warped thinking! This will not force OTC shares to be listed at NSE. The main market instead will face a competitor as another exchange comes up!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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hisah wrote:instinct wrote:I gather CGT has been abolished and will not be charged even next year! This should spur some buying activity... RiNK Suspension starts from Jan 1 2016.
This is what happens when govt has no clue on what it's doing. CGT now applies to OTC. The UAP deal must have informed this poor decision. Let's tax an illiquid market!? Warped thinking! This will not force OTC shares to be listed at NSE. The main market instead will face a competitor as another exchange comes up!
They'll hardly get 5 million if what they collected in the main market is anything to go by
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