wazua Fri, Mar 27, 2026
Welcome Guest Search | Active Topics | Log In

7 Pages<12345>»
The Capital Gains Tax
Options
Previous Topic · Next Topic
DBLyon
#21 Posted : Thursday, August 28, 2014 9:06:47 AM
Rank: Member

Joined: 5/28/2014
Posts: 149
Location: Nairobi
Does anyone have the wording of the Finance Bill? What is the definition of 'property' in the clause? In the BD they only mentioned minerals and real estate, and not stocks.

And 5% doesn't seem too bad...I originally had visions of 30%.
When you live for others' opinions, you are dead.

- Carlos Slim Helu
Back to top
  |
Mainat
#22 Posted : Thursday, August 28, 2014 9:18:36 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Yes-no mention of stocks, Although the original law targeted stocks. Also note that its only on 20%+ gains
Sehemu ndio nyumba
Back to top
  |
DBLyon
#23 Posted : Thursday, August 28, 2014 9:41:03 AM
Rank: Member

Joined: 5/28/2014
Posts: 149
Location: Nairobi
maka wrote:
mlennyma wrote:
I also wonder who will monitor the millions of transactions when you bought and when you sold and your gains...


That is solely the bourse,s mandate....


Yes, indeed. I'm sure all would pay this tax, if it is effected; both Wanjiku and fund managers. I think it would simply be a formula same as the brokerage et al fees.
When you live for others' opinions, you are dead.

- Carlos Slim Helu
Back to top
  |
DBLyon
#24 Posted : Thursday, August 28, 2014 9:45:22 AM
Rank: Member

Joined: 5/28/2014
Posts: 149
Location: Nairobi
And a different perspective - while there are people who claim to avoid certain investments because of taxes such as these, the fact is that when you trade you make a profit. The taxation means you make 95% of what you would have made. Is that such a disaster? Would you rather not trade and make 0% of your gains? Are there other investments out there that the people would opt for without taxes?
When you live for others' opinions, you are dead.

- Carlos Slim Helu
Back to top
  |
mwenza
#25 Posted : Thursday, August 28, 2014 10:49:35 AM
Rank: Elder

Joined: 4/22/2009
Posts: 2,863
DBLyon wrote:
And a different perspective - while there are people who claim to avoid certain investments because of taxes such as these, the fact is that when you trade you make a profit. The taxation means you make 95% of what you would have made. Is that such a disaster? Would you rather not trade and make 0% of your gains? Are there other investments out there that the people would opt for without taxes?


Not true.
IF YOU EXPECT ME TO POST ANYTHING POSITIVE ABOUT ASENO, YOU MAY AS WELL SIT ON A PIN
Back to top
  |
VituVingiSana
#26 Posted : Thursday, August 28, 2014 12:27:06 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,356
Location: Nairobi
mwenza wrote:
DBLyon wrote:
And a different perspective - while there are people who claim to avoid certain investments because of taxes such as these, the fact is that when you trade you make a profit. The taxation means you make 95% of what you would have made. Is that such a disaster? Would you rather not trade and make 0% of your gains? Are there other investments out there that the people would opt for without taxes?


Not true.
Thank you! Cost of capital/loans, trading costs, office expenses [internet, phone calls] and potential losses ask @obiero about KQ or @guru about HAFR to @VVS about Olympia
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
Gordon Gekko
#27 Posted : Thursday, August 28, 2014 2:09:02 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
DBLyon wrote:
Does anyone have the wording of the Finance Bill? What is the definition of 'property' in the clause? In the BD they only mentioned minerals and real estate, and not stocks.

And 5% doesn't seem too bad...I originally had visions of 30%.

Also on the wording, what is a gain? Is it the difference between the price you bought it at and the price you sold it at, or is it the selling price?
Back to top
  |
kazee
#28 Posted : Thursday, August 28, 2014 2:21:48 PM
Rank: Member

Joined: 9/18/2006
Posts: 131
So if i buy land for 1m, use 3m to develop it and sell the property for 8m, do i pay 5% on (8m-1m)=7m or what? Coz the difference is not all profit, 3m was used to develop the empty land.

Tax accountants?
Back to top
  |
jawgey
#29 Posted : Thursday, August 28, 2014 3:19:13 PM
Rank: Member

Joined: 1/13/2014
Posts: 398
Location: Denmark
kazee wrote:
So if i buy land for 1m, use 3m to develop it and sell the property for 8m, do i pay 5% on (8m-1m)=7m or what? Coz the difference is not all profit, 3m was used to develop the empty land.

Tax accountants?


Development of land is a capital expenditure so there's no way KRA will allow that expense.

you will only be able to claim capital allowances when declaring your income. e.g. rental income.

otherwise capital gains will apply to the (8-1)=7m which is the effective gain doesn't matter if there are legal fees, valuation fees et al involved.
Seeing is believing
Back to top
  |
DBLyon
#30 Posted : Thursday, August 28, 2014 6:01:56 PM
Rank: Member

Joined: 5/28/2014
Posts: 149
Location: Nairobi
mwenza wrote:
DBLyon wrote:
And a different perspective - while there are people who claim to avoid certain investments because of taxes such as these, the fact is that when you trade you make a profit. The taxation means you make 95% of what you would have made. Is that such a disaster? Would you rather not trade and make 0% of your gains? Are there other investments out there that the people would opt for without taxes?


Not true.


By this I mean that if you decide to sell your land (for example) you will be doing it at a profit. I don't expect one to be trading at a loss (at least where there is a choice). If I sell land and expect to make a profit of 10M, I still get 9.5M after paying the tax of 500k. The 9.5M is better than the zero gain if the tax is what deters me.

And by profit I expect one has taken into account all expenses. Duh...d'oh!
When you live for others' opinions, you are dead.

- Carlos Slim Helu
Back to top
  |
7 Pages<12345>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.