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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: 928 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: 2,389
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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: 2,301 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: 11,937
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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: 2,301 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: 661
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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: 661
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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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Capital Gains Tax on EQUITIES
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