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International Comparison of Taxation of Securities

 

Transaction
(General investor)

Possession

Capital gains

Holding

Earnings

Interest

Dividend

Japan

Securities Transaction Tax
Abolished in April 1999

---

Income Tax
separate withholding taxation at source

Income Tax
(selection)
-

separate withholding taxation at source

-

comprehensive income taxation

Income Tax
(selection)
-

separate withholding taxation at source

-

comprehensive income taxation

U.K.

Stamp Duties (buyer's charge)

-

stock:0.5% of dealings price

-

bond:non-taxable

Stamp Duty Reserve Tax
(buyer's charge)

-

stock:0.5% of dealings price

-

bond:non-taxable

---

Income Tax
comprehensive income taxation

Capital Gains Tax
Net gains are charged at 20% where the gains added to total income are below the basic rate (23%) bracket of Income Tax and 40% where they exceed the bracket.

France

Bourse Tax
(seller's 50%, buyer's 50%)

-

stock:of dealings price
1 million franc and less:0.6%
more than 1 million franc:0.3%

-

debenture:non-taxable

Net Wealth Tax (Surtax 10%)

-

only individual:0.5--1.5%

-

basic exemption:4.7 million francs

Income Tax
(selection)

-

separate withholding tax-ation at source

-

comprehensive income tax-ation

Income Tax
Comprehensive income tax-ation

Income Tax
self-assessed separate taxation

U.S.A.

---

---

Income Tax
comprehensive income taxation

Income Tax
Taxed aggregated with other incomes.

Possession more than 12 months : maximum tax rate is 20%

Germany

---

Property Tax (state tax)
- individual:1.0%, corporation:0.6%
- the tax can no longer be levied from 1 January 1997

Income Tax
comprehensive income taxation

Non-taxable
In case of investment transaction (possession not exceeding 12 month), taxable

Italy

Securities Transaction Tax
(seller’s 50%, buyer’s 50%)

-

stock:0.14% of dealings price

-

bond:0.016% of dealings price

---

Income Tax
separate withholding tax-ation at source

Income Tax
comprehensive income tax-ation

Income Tax
(selection)

-

separate withholding taxation at source

-

comprehensive income taxation

Canada

---

---

Income Tax
comprehensive income taxation

Income Tax
3/4 of capital gains, aggregate taxation with other income

Switzerland

Stamp Tax
(seller's 50%, buyer's 50%)

-

domestic stock, bond:0.15% of dealings price

-

foreign stock, bond:0.3% of dealings price

(Note)

Transaction of foreign bond by non-resident is non-taxable

Property Tax (national tax)
only corporation:0.0825%
Property Tax (state tax, in Zurich)

-

individual:0.05--0.3%

-

corporation:0.15%

-

individual basic exemption (a couple):1,260,000 franc

(Note)

There is property tax in municipal

Income Tax
comprehensive income taxation

Non-taxable

Denmark

Securities Transaction Tax
(seller’s charge)

-

stock:0.5% of dealing price

-

bond:non-taxable

Property Tax

-

only individual:0.7%

-

basic exemption (a couple) : 4,800,000 kroner

Income Tax
separate taxation with capital gains as capital income

Income Tax
Separate withholding tax-ation at source

Income Tax
Taxed with interest, etc. as capital income

Sweden

---

Property Tax

-

only individual:1.5%

-

basic exemption:900,000 kroner

Income Tax
separate taxation with capital gains as capital income

Income Tax
Separate taxation with capital gain as capital income

Income Tax
separate taxation with interest, etc. as capital income

Belgium

Securities transaction Tax
(seller’s 50%, buyer’s 50%)

-

stock:0.34% of transfer price

-

bond:0.14% of transfer price

---

Income Tax
(selection)
-separate withholding taxation at source
-comprehensive income taxation

Non-taxable

Singapore

Stamp Tax

- stock :

0.2% of dealings price

- bond :

0.2% of dealings price (listed debenture)

:

non-taxable (others)

---

Income Tax
comprehensive income taxation

Non-taxable

Hong Kong

Stamp Tax
(seller's 50%, buyer's 50%)

-

stock:0.25% of dealings price

-

bond:non-taxable

---

Non-taxable

Non-taxable

(Notes) 1. Interests and capital gains earned by corporations are in principle taxed in the same way as on ordinary corporate income.
2. Property Tax in Germany was abolished in 1997.

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