Income tax - Capital Gains tax
Posted in EAC Tax Matrices
Republic of Burundi
| Tax on Capital Gains | Rate (%) |
|---|
Capital gain resulting from sale or cession of immovable property
This is taxed together with business profits |
N/A |
Re-organisation means:
- A merger of two or more resident companies;
- The acquisition or takeover of more than 50% or more of shares or voting rights, by number or value, in a resident company in exchange for shares of purchasing company;
- The contribution of at least 50% of assets and liabilities of a resident company by another resident company solely in exchange of shares in the purchasing company;
- Splitting of a resident company into two or more resident companies
|
No tax on capital gains |
Republic of Kenya
| Tax on Capital Gains | Rate (%) |
|---|
Capital Gains Tax is a tax chargeable on the whole of a gain which accrues to a company or an individual on or after 1st January, 2015 on the transfer of property situated in Kenya, whether or not the property was acquired before 1st January 2015.
Property is defined in the law (Eighth Schedule to the Income Tax Act). It includes land, buildings and marketable securities.
The tax is to be paid by the person (resident or non-resident) transferring the property, that is, the transferor. The transferor can either be an individual or a corporate body.
A transfer takes place:
- where a property is sold, exchanged, conveyed or disposed of in any manner (including by way of gift); or
- on the occasion of loss, destruction or extinction of property whether or not compensation is received; or
- on the abandonment, surrender, cancellation or forfeiture of, or the expiration of rights to property.
The loss may be carried forward to be offset / deducted against a gain of a similar nature (that is, a capital gain) at a future date. |
5% |
Certain transactions are exempted as follows:
- income that is taxed elsewhere as in the case of property dealers;
- issuance by a company of its own shares and debentures;
- transfer of machinery including motor vehicles;
- disposal of property for purpose of administering the estate of a deceased person;
- vesting of property in the hands of a liquidator or receiver;
- transfer of individual residence occupied by the transferor for at least three years before the transfer;
- compensation by Government for property acquired for infrastructure development;
- transfer of asset between spouses as part of divorce settlement;
- sale of land by an individual where the proceeds is less than KShs 30,000;
- sale of agricultural land by individuals outside gazetted townships where the property is less than 100 acres;
- Exchange of property necessitated by: incorporation, recapitalization, acquisition, amalgamation, separation, dissolution or similar restructuring involving one or more companies which is certified by the Cabinet Secretary to have been done in the public interest;
- transfer of investment shares by a body exempted under Paragraph 10 of the First Schedule;
- transfer of investment shares by retirement benefits scheme registered with Commissioner.
|
No tax on capital gains |
Republic of Rwanda
| Tax on Capital Gains | Rate (%) |
|---|
| Capital gain resulting from sale or cession of commercial immovable property |
30% |
| Capital gain on secondary market transaction on listed security. However in case of corporate reorganisation, the transferring company is exempt from tax in respect of capital gains and losses realised on reorganisation. |
Exempt |
Re-organisation means:
- A merger of two or more resident companies;
- The acquisition or takeover of more than 50% or more of shares or voting rights, by number or value, in a resident company in exchange for shares of purchasing company;
- The contribution of 50% or more of assets and liabilities of a resident company by another resident company solely in exchange of shares in the purchasing company;
- Splitting of a resident company into two or more resident companies
|
|
United Republic of Tanzania
| Disposal of investment | Tanzania Asset | Overseas Asset |
|---|
| |
% |
% |
| Individual: |
| Resident |
10 |
30 |
| Non-resident |
20 |
N/A |
| Company: |
| Resident |
30 |
30 |
| Non-resident |
30 |
N/A |
Exemptions
- Private Residence - Gains of TShs 15m or less
- Agricultural land - Market value of less than TShs 10m
- Units in an approved collective investment scheme
- Shares:
- DSE shares held by resident
- Shares held by non-resident with shareholding of less than 25%
|
Republic of Uganda
| Tax on Capital Gains | Rate (%) |
|---|
| Capital gains accrued prior to 1 April 1998 are not taxable |
30 |
| Chargeable assets: |
| Non depreciable business assets |
30 |
| No capital gains on private assets |
30 |
| Gains arising from sale of shares in a private limited company - this applies even though such shares are not business assets (e.g for individuals) |
30 |
| Chargeable gain: |
| Disposal proceeds less cost base. Cost base is defined as the amount paid or incurred by the taxpayer in respect of the asset including incidental expenditure of a capital nature incurred in acquiring the asset and includes any consideration in kind given for the asset. In the case of any asset acquired prior to 31 March 1998, the cost base is the indexed cost or the market value as at 31 March 1998 determined using a pre-determined formula. |
30 |
