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My 2 cents		#1 Posted : Monday, June 07, 2010 8:20:20 AM
Rank: Veteran Joined: 6/2/2010 Posts: 1,067		It is in the news that there is pressure for the reintoduction of Capital Gain Tax that was suspended in 1985. This would mean that we have to pay taxes on profits made from share trading. My 2 cents attached the following image(s): capitalgainstax.jpg (3kb) downloaded 4 time(s).
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mukiha		#2 Posted : Monday, June 07, 2010 8:30:02 AM
Rank: Elder Joined: 6/27/2008 Posts: 4,114		The target has always been land transactions. Maybe this will replace the Stamp Duty....which people are suggesting should be scrapped Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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FundamentAli		#3 Posted : Monday, June 07, 2010 8:31:42 AM
Rank: Veteran Joined: 11/4/2008 Posts: 1,289 Location: Nairobi		Very unlikely. How do you remove stamp duty and then add capital gain tax? It defeats the logic.
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guru267		#4 Posted : Monday, June 07, 2010 8:38:44 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		well i was wondering how long the free ride would last... i just pray that this remains a one time story like the "delisting of mumias" one but i was expecting it... but in Uganda we're charged capital gains tax and pretty much everywhere else so we had to see this coming.... but I'd hope the treasury waits a while until kenya regains its attractiveness as an investment hub because it image is not the best with all the political commotion... and very key to note is that the capital gains tax is only charged on assets held for over a year... @fundamental Ali the capital gains tax yields 18% and above whereas stamp duty yields less than 1.5% and you ask where the logic is???? Mark 12:29 Deuteronomy 4:16
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Wa_ithaka		#5 Posted : Monday, June 07, 2010 8:38:46 AM
Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi		I doubt they'll scrap stamp duty and not levy another type of tax. IMHO, we need some tax or other mechanism particularly targetted at land sales because prices are going haywire. The Governor of Nyeri - 2017
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mukiha		#6 Posted : Monday, June 07, 2010 8:47:59 AM
Rank: Elder Joined: 6/27/2008 Posts: 4,114		Remember; Kimunya had introduced Capital Gains Tax on land, but the MPs rejected it. I think land will be the main target here. If it is expanded to the stock market there won't be much revenue to be raised... we haven't much gain in a long time, any way Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Kesh!		#7 Posted : Monday, June 07, 2010 9:04:46 AM
Rank: Member Joined: 10/16/2008 Posts: 47		Wakijaribu kuleta CGT haba ndani ya stocks hata sisi tutabea wao bressure watax miraa ya waaria. Kama si hivyo kila mutu anakaa bahali yake bole bole bila tax.
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Kamaa		#8 Posted : Monday, June 07, 2010 9:40:24 AM
Rank: Veteran Joined: 10/6/2007 Posts: 1,177 Location: Nairobi - Kenya		capital gain tax was proposed to be re-introduced by kimunya in 2006 but the mps rejected it since they feared that it targeted them & the rich... if it's re-introduced now it will affect investors who gains in investments held over one year... critically speaking the govt need to re-introduce it so as to conform with the world all over and to net the gains reaped by the likes of Meralis... When you hear what I say, you will not understand. When you see what I do, you will not comprehend
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mozenrat		#9 Posted : Monday, June 07, 2010 9:56:59 AM
Rank: Veteran Joined: 5/18/2008 Posts: 796		For those of you in Uganda and other countries where CGT is collected, does the Government account for inflation? What happens if you sell at a loss? Do you gain tax credits?
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Kamaa		#10 Posted : Monday, June 07, 2010 10:16:00 AM
Rank: Veteran Joined: 10/6/2007 Posts: 1,177 Location: Nairobi - Kenya		if gain is taxed then loss must be accumulated... in our case, to take care of inflation the govt should tax gains at rates lower than corporation tax rate... When you hear what I say, you will not understand. When you see what I do, you will not comprehend
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Wa_ithaka		#11 Posted : Monday, June 07, 2010 11:06:52 AM
Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi		A good starting pt would be to levy CGT on gains made under 1yr The Governor of Nyeri - 2017
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guru267		#12 Posted : Monday, June 07, 2010 1:38:09 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		mozenrat wrote: For those of you in Uganda and other countries where CGT is collected, does the Government account for inflation? What happens if you sell at a loss? Do you gain tax credits? i don't understand what you mean by accounting for inflation because CGT is a tax levied on profits made from a transaction its not charged on losses but i'm not sure if there are any credits gained Mark 12:29 Deuteronomy 4:16
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winston		#13 Posted : Monday, June 07, 2010 2:04:59 PM
Rank: Member Joined: 4/14/2010 Posts: 806 Location: Nairobi		I think inflation affects all profits/gains whether they are capital or revenue by virtue of the diminished purchasing power of these profits or gains.
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FundamentAli		#14 Posted : Monday, June 07, 2010 2:17:10 PM
Rank: Veteran Joined: 11/4/2008 Posts: 1,289 Location: Nairobi		This whole story is in today's BD. Accountants argue it is a way of breaching the gap between Rich and Poor. If they start lobbying today, this move will be acceptable to the ruling class 10 yrs from now
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mozenrat		#15 Posted : Monday, June 07, 2010 5:13:56 PM
Rank: Veteran Joined: 5/18/2008 Posts: 796		@Guru... Imagine if you bought some shares in Jan 2010 and sold in Jan 2011 with 11% capital gains yet inflation was running at 20%... Wouldn't you then be paying the tax on a loss?
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VituVingiSana		#16 Posted : Monday, June 07, 2010 5:40:24 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,118 Location: Nairobi		mozenrat wrote: @Guru... Imagine if you bought some shares in Jan 2010 and sold in Jan 2011 with 11% capital gains yet inflation was running at 20%... Wouldn't you then be paying the tax on a loss? False logic here! You pay tax on interest income... so whether inflation is above or below the 'gain' or 'Interest Income' the tax remains... Unfair? Yes! Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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