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Financial Transactions Taxes Around the World

Contents

Types Of Financial Transaction Taxes

Financial Transaction Tax (FTT) – A tax on buying and selling a stock, bond, or other financial contract like options and derivatives (Klien 2020).

Securities Transaction Tax (STT) – A tax levied at the time of purchase and sale of securities listed on stock exchanges (Sharma 2019).

Stamp Duty (Capital Duty some Countries) – A tax on a variety of legally recorded documents, Governments have placed stamp taxes on the transfer of homes, buildings, copyrights, land, patents, and securities (Kenton 2020).

Transfer Tax – A transfer tax may be imposed by a state, county, or municipality. It is usually not deductible from federal or state income taxes, although it may be added to the cost basis when profit on the sale of securities and investment property is calculated (Kagan 2020).

Countries with Current Financial Transaction Taxes

Angola – No Financial Transaction Tax Currently Found.

Argentina – (Financial Transaction Tax)- The financial transactions tax of 0.6% on debits and credits in current accounts does not apply on employment compensation and pension payments. A 1.2% tax applies on any transactions made in a bank without using a bank account. A stamp duty of 1% is levied on the formal execution of public and private instruments including contracts, notarial deeds and promissory notes. Special rates of 0.5%, 1.2%, 3%, and 3.6% apply in certain cases (“Argentina: Tax System” 2020).

Armenia – No Financial Transaction Tax Currently Found.

Australia – No Financial Transaction Tax Currently Found.

Austria – No Financial Transaction Tax Currently Found.

Azerbaijan – No Financial Transaction Tax Currently Found.

Belarus – No Financial Transaction Tax Currently Found.

Belgium – (Transfer Tax)- [*Belgium will switch to the EU FTT when the Directive has been agreed.] Tax of .12% €1,200 for transactions of Bonds, 0.35% up to a maximum of €1,600 per transaction for transactions in shares and certificates of certain contractual investment funds, 1.32% up to a maximum of €4,000 per transaction for transactions in investment funds. Transactions made for its own account by non-resident taxpayers and by some financial institutions, such as banks, insurance companies, organizations for financing pensions (OFPs) or collective investment are exempted from the tax (Burnleit and Girlat 2018, 6).

Bermuda – No Financial Transaction Tax Currently Found.

Brazil – (Financial Transaction Tax)- Maximum rate of 1.5%, For IOF (Name of Brazilian FTT), on the spot-purchase of foreign currencies in cash (IOF-FX) a rate of 1.10% is now imposed, (Burnleit and Girlat 2018, 15).

British Virgin Islands (BVI) – (Stamp Duty)- Certain limited transactions in the British Virgin Islands are still subject to stamp duty. The main application of the stamp duty legislation relates to transfers of real estate or transfers of stock/shares in companies that own real estate. The rate of stamp duty on such transactions varies according to the status of the transferee; for Belongers, stamp duty on land transfers is 4%; for Non-Belongers, it is assessed at 12%.

Canada – No Financial Transaction Tax Currently Found.

Cayman Islands – No Financial Transaction Tax Currently Found.

Chile – No Financial Transaction Tax Currently Found.

Colombia – No Financial Transaction Tax Currently Found.

Czech Republic – No Financial Transaction Tax Currently Found.

Costa Rica – (Stamp Duty)- Stamp tax is levied on agreement and contracts, at a rate of 0.5% calculated on the economic value of the document.

Cote d’lvoire – No Financial Transaction Tax Currently Found.

China – (Stamp Duty)- .1 % for sellers for share transfer transactions in both directions (i.e., share trades on the Shenzhen Stock Exchange (SSE). Transactions in Chinese A-shares will be taxed on 0.1% for the seller. Exemptions are applicable only for certain stock borrowing activities, designed to cover short sales (Burnleit and Girlat 2018, 15).

Croatia – No Financial Transaction Tax Currently Found.

Curaçao – No Financial Transaction Tax Currently Found.

Cyprus – (Stamp Duty)- Cyprus imposes stamp duty on written contracts relating to the purchase or sale of property or assets in Cyprus. Securities issued by Cypriot corporations, and agreements in relation to the sale of securities of Cypriot corporations, also fall within the scope of the duty. The stamp duty rate is: 0.15% on transactions with amounts from €5,001 to €170,00, 0.20% on transactions with amounts above €170,001. If no consideration is specified in the contract, a stamp duty of €35 is due. The maximum stamp duty payable on a contract is capped at € 20,000. An agreement for the sale of a security listed on a recognized stock exchange is exempt (Burnleit and Girlat 2018, 6).

Czech Republic – No Financial Transaction Tax Currently Found.

Denmark – No Financial Transaction Tax Currently Found.

Dominican Republic – Had a Stamp Duty but it was abolished (Ortega 2020).

Ecuador – No Financial Transaction Tax Currently Found.

Egypt – (Stamp Duty)-  A stamp duty tax on the total value of purchases and sales of securities of all kinds whether listed or not, no matter whether the securities were Egyptian or foreign, and without deducting any costs is levied on both the buyer and the seller of shares traded on the Egyptian Exchange (EGX) at a current rate of .175% (Burnleit and Girlat 2018, 16).

Ethiopia – (Financial Transaction Tax)- A part from the 30% capital gains on the transfer of shares and the 10% tax on dividends from the annual net profit of a company, there are no separate “dividend” taxes on the sale of shares in closely held corporations (Dagne and Kassaw 2020).

Finland – (Financial Transaction Tax)- 1.6% FTT on the transfer of certain Finnish securities, mainly equities such as bonds, debt securities and derivatives. There is also a 2% tax on the transfer of Finnish REIT/Housing companies. However, provided the transfer occurs on a qualified stock exchange, it is rendered exempt from tax. Additionally, the tax is not imposed unless both parties to the transfer are not Finnish residents, unless: the non-Finnish resident is a company whose assets consist of more than 50% immovable property in Finland, and the Finnish securities transferred are REIT/ Housing companies (Burnleit and Girlat 2018, 7).

France – (Financial Transaction Tax)- [* France will switch to the EU FTT when the Directive has been agreed.] The current tax rate is 0.3% for French equity trades and 0.01% on high frequency trading (Burnleit and Girlat 2018, 7).

Gabon – (Financial Transaction Tax)- Remote transfer operations carried out in Gabon towards countries outside the Central Africa Monetary Union (UMAC) are taxed at a rate of 1.5% of the amount of the funds to be transferred. (“Tax Rates In Gabon” 2020).

Georgia – No Financial Transaction Tax Currently Found.

Germany – (Financial Transaction Tax)- German finance minister has drawn up a draft law that envisages introducing a financial transaction tax, under the draft anyone who buys shares in large companies, valued at over 1 billion euros, would pay a tax of 0.2% of the transaction value (Carrel 2019).

Ghana – No Financial Transaction Tax Currently Found.

Greece – No Financial Transaction Tax Currently Found.

Guatemala – No Financial Transaction Tax Currently Found.

Hungary – No Financial Transaction Tax Currently Found.

Honduras – No Financial Transaction Tax Currently Found.

Hong Kong – (Stamp Duty)- .1 % for sellers for share transfer transactions in both directions (i.e., on the Hong Kong Stock Exchange (HKSE). Transactions in Chinese A-shares will be taxed on 0.1% for the seller. Exemptions are applicable only for certain stock borrowing activities, designed to cover short sales (Burnleit and Girlat 2018, 15).

India – (Securities Transaction Tax)- A Securities Transaction Tax (STT) on the purchase and sale of shares at a recognized stock exchange, which also applies to bonds, debentures, derivatives, units issued by any collective investment scheme, equity-based government rights or interests in securities and equity mutual funds. The tax rate applicable varies depending on what type of the following transactions it falls under. Sale of equity shares or units of equity-oriented mutual funds through stock exchange: 0.001%, for sale of futures in securities: 0.01% for sale of options in securities, 0.05% for sale of a unit of an equity-oriented fund to a mutual fund, 0.001% for sale of an option in securities where the option is exercised: 0.125%, for equity transactions that are delivery-based. Purchase and sale is 0.1% of the turnover and for intra-day transactions, purchase is nil and sale is 0.025% of the turnover (Burnleit and Girlat 2018, 16).

Indonesia – No Financial Transaction Tax Currently Found.

Iraq – No Financial Transaction Tax Currently Found.

Ireland – (Stamp Duty)- A transfer of stock or marketable securities of any company incorporated in Ireland is liable to a stamp duty at 1% of the consideration paid. In practice, this means that the duty mainly applies to transfers of shares in Irish companies and derivative financial instruments that relate to shares in Irish companies. If an electronic transfer takes place through the CREST system a 1% charge arises as well. The liability for the payment of the tax belongs to the purchaser/transferee. The following are exempt from stamp duty, the transfer of shares valued under €1,000, the transfer from one company to another as part of a corporate reconstruction or amalgamation, securities issued by the government or the EU, the issuance, transfer, repurchase or redemption of units of a collective investment undertaking, and transfer of shares in Irish companies admitted to the Enterprise Securities Market (ESM) of the Irish Stock Exchange (Burnleit and Girlat 2018, 9).

Israel – No Financial Transaction Tax Currently Found.

Italy – (Financial Transaction Tax)- [* Italy will switch to the EU FTT when the Directive has been agreed.] There are three categories of transactions considered in-scope for the Italian Financial Transaction Tax (IFTT): 1. Shares, participating financial instruments and other instruments representing those issued by Italian-resident companies with an average market capitalization greater than €500mn 2. Derivatives, if more than 50% of their underlying reference value relates to in-scope Italian shares, or is referenced to the value of in-scope Italian shares, including options, warrants, covered warrants and certificates 3. High-Frequency-Trades (HFT), as generated by a computer algorithm that automatically determines the decisions related to the relevant orders or metrics, where the ratio of orders amended or canceled, in a time frame shorter than half a second exceeds 60% of total orders entered. The rate of tax applied differs depending on the type of transaction, 0.02% on high frequency trades, 0.10% on exchanged traded equities, 0.20% on over-the-counter equities. There are several exemptions granted for IFTT withholding, including: market-making activities, transactions to ensure the liquidity of newly issued shares, purchases by pension funds and similar entities,transactions between related parties, transactions on qualifying “ethical” or “socially responsible” financial products, transactions with the EU, ECB, Central banks of EU member states or institutions established by international agreements, and executed by Italy,  new issuance of shares, including upon conversion of bonds, transfers by way of inheritance or donation, transactions of temporary acquisitions of securities such as repos and securities lending (Burnleit and Girlat 2018, 9).

Jamaica – No Financial Transaction Tax Currently Found.

Japan – No Financial Transaction Tax Currently Found.

Jordan – No Financial Transaction Tax Currently Found.

Kazakhstan – No Financial Transaction Tax Currently Found.

Kenya – (Stamp Duty)- According to stamp duty Kenya, when transferring marketable securities and unquoted shares one pays the rate of 1% An exemption for stamp duty charges is put on the transfer of quoted shares, and marketable securities (Gracia 2018).

Kuwait – (Transfer Tax)- KSC ( Kuwaiti Shareholding Company) both listed and unlisted must pay 1% of their profits, after the transfer, of the statutory reserve and the offset of losses, to the Kuwait Foundation for the Advancement of Science (Abdel-Fattah 2020).

Latvia – No Financial Transaction Tax Currently Found.

Lebanon – (Stamp Duty)- A one-time stamp duty is levied on the subscription of capital of a company or an increase in capital (Fadl and El-Kadi 2019).

Liberia – No Financial Transaction Tax Currently Found.

Lithuania – No Financial Transaction Tax Currently Found.

Luxembourg – No Financial Transaction Tax Currently Found.

Macedonia – No Financial Transaction Tax Currently Found.

Malaysia – (Stamp Duty)- The rate of stamp duty for the sale of shares and stocks of marketable securities transactions is 0.3%. There are exemptions if certain conditions are met such as an exemption on the sale and purchase of shares in small and medium capital companies and to contract notes executed between March 1, 2018 and February 29, 2021. The following requirements are applicable: listed on the Bursa Malaysia Securities Berhad (BMSB), have a market capitalization between RM 200 million to RM 2 billion on 31 December of the year immediately preceding the year where the contract note is executed, is specified on the list issued by the BMSB, which will be published every 31 December and which will be effective from 1 January of the following year, remaining unchanged throughout the year. The exemption is applicable on both dematerialized shares and physical certificates (Burnleit and Girlat 2018, 17).

Malta – (Stamp Duty)- A 2% stamp duty tax is chargeable on the transfer of marketable securities such as any share, stock, debenture, bond or interest in any company. The tax is imposed on transfers that are executed in Malta. Both the transferor and transferee are jointly liable to pay the tax. Exemptions include shares listed on the Malta Stock Exchange, transfer of shares by non-residents, marketable securities acquired or disposed of by collective investment schemes, transfers to persons holding an investment services license, transfers to international trading companies, companies where more than half the ordinary share capital, voting rights and rights to profits are held by persons who not resident in Malta and are not owned or controlled directly by persons resident in Malta, and such company has been determined by the Commissioner of Inland Revenue as having the majority of its business interests outside Malta, companies which prove to the Commissioner of Inland Revenue that they carry on, or intend to carry on, business to the extent of more than 90% outside Malta,transfer of shares between companies within the same group, transfer of local securities if the transfer is made via merger, de-merger or restructuring within the scope of a group of companies (Burnleit and Girlat 2018, 10).

Marshall Islands – No Financial Transaction Tax Currently Found.

Mauritius – No Financial Transaction Tax.

Mexico – No Financial Transaction Tax Currently Found.

Mongolia – No Financial Transaction Tax Currently Found.

Morocco – No Financial Transaction Tax Currently Found.

Netherlands – No Financial Transaction Tax Currently Found.

New Zealand – No Financial Transaction Tax Currently Found.

Nigeria – (Stamp Duty/Financial Transaction Tax)- Any entity or person with a “significant presence”, even if is is not physical is now subject to a Stamp Duty N50 on bank transfers from one account to another valued above N10,000, unless it is a person switching money between their own personal bank accounts and The Finance Bill 2019 amends sections 9, 10, 13, 16, 19, 20, 23, 24, 27, 29, 31, 33, 39, 40, 41, 43, 53, 55, 77, 78, 80, 81, and 105 of CITA. It will also amend the third and seventh schedules of the Companies Income Tax Act (“CITA”). The amendments mean that companies without their TIN cannot operate corporate accounts in the country, foreign companies engaged in the ‘digital’ economy would be subjected to the payment of tax in Nigeria, any digital company with a ‘significant economic presence’ in Nigeria, even without any physical presence in the country, but making some sort of financial trade is expected to pay tax (Udo 2019). Minimum Tax basis is levied and payable by a company for any year of assessment where, in ascertainment of total assessable profits from all sources a loss occurs, or tax on total profits is less than the minimum tax as determined below; where turnover is N500,000 or below, minimum tax payable shall be the highest of: 0.5% of gross profits, 0.5% of net assets 0.25% of paid-up capital , or0.25% of Turnover for the year. Where turnover is above N500,000, minimum tax payable shall be the sum of the highest factor in the above; plus 0.125% of turnover in excess of N500, 000. Exceptions to minimum tax are that it is not applicable to a company during the first four years of its commencement of business, it is also not applicable to agricultural trade or business as defined in Section 9 (8) of Companies Income Tax Act: and it is not applicable to any company with at least 25 per cent imported equity capital (Olagunju 2020).

Norway – No Financial Transaction Tax Currently Found.

Oman – No Financial Transaction Tax Currently Found.

Pakistan – (Stamp Duty)- Although Pakistan has had a stamp duty since 1899 it has changed recently with the passage of the 2015 Finance Bill which added a tax for the transfer of shares from one Central Depository Company (CDC) account to another CDC account. The new rates are 0.5% to 1.5% of the face value for the issuance and transfer of shares, 0.01% of the purchase value for shares of public companies listed at a stock exchange, 0.01% of the face value of shares on transfer from one CDC account to another (Burnleit and Girlat 2018, 17).

Panama – (Securities Transfer Tax)- Gains derived from securities are subject to a 10% tax, the purchaser must withhold 5% of the sales price as an advance payment on income tax and remit that amount to tax authorities. If the 5% holding tax is more than that 10% tax on the gain , the seller can request a refund. The Panama-Pacific Special Economic Area exempts gains made from the transfer of shares of companies within the area (Irigoyen, Pérez and Pacheco 2020).

Papua New Guinea – No Financial Transaction Tax Currently Found.

Paraguay – No Financial Transaction Tax Currently Found.

Peru – (Financial Transaction Tax)- A financial transaction tax is imposed, primarily on debit and credit transactions with Peruvian bank accounts at a rate of .005% (International Tax: Peru Highlights 2019 2019, 2).

Philippines – (Transfer Tax)- In the Philippines a documentary stamp tax (DST) is imposed under the National International Revenue Code. The issuance and transfer of shares is taxed at a rate of 0.6% of 1% of the taxable base whereas the documentary stamp tax on the sale or transfer of shares which are listed at the stock exchange is taxed at 0.75% based on the par value of the shares. Based on the issue price of debt instruments, the applicable documentary stamp tax rate is 1.5% of the par value, but if the term is less than one year, it is applied in a proportional amount related to its term in days. Collection and payment is required by the selling broker on behalf of the client. Trading in the secondary market remains exempt pursuant to the Philippines Tax Code (Burnleit and Girlat 2018, 17).

Poland – (Transfer Tax)- 1% Tax on the sale of securities and derivatives, Polish treasury bonds, treasury bills and other specified securities exempted (Burnleit and Girlat 2018, 10).

Portugal – No Financial Transaction Tax Currently Found.

Puerto Rico – (Financial Transaction Tax)- The same laws for securities and stocks that apply in the United States of America until the holder of the securities or stock has lived in Puerto Rico for ten years (Wood 2019). The FTT in the United States is levied on security futures transactions will remain unchanged at $0.0042 for each round turn transaction (United States Securities And Exchange Commission 2020).

Qatar – No Financial Transaction Tax Currently Found.

Romania – (Financial Transaction Tax)- The Romanian Financial Transaction tax, commonly known as Romania’s “Greed Tax” that affected stocks, shares and pension fund investments which was passed in 2018 was quickly rolled back and currently has changed. After seven pension funds managers with 22 employees on average collected EUR 100 million in fees during 2018, finance minister Teodorovici stated the original 2.5% fee, which was aimed at being charged only over the first five years of life, with the fund management companies supposed to have gained capitalization during this period, was too high Government officials explained. The 0.6% annual fee charged on the stock of assets managed (0.05% per month) will be changed into progressive fee of 0.02% to 0.07% per month depending on the yield generated by the fund managed. The 0.07% fee will be charged by those managers achieving real yields of more than 4%. As of September 2018, the average yield calculated for the past 24 months was 3.8%, versus average consumer price inflation of 2.5%. The real yield (1.3%) under this metric is at the lowest level since the end of 2012. At this level, the fee charged would be 0.04% per month, versus 0.05% currently. These levels are far down leading many to blame it for Romania’s Financial issues (Ernst 2018).

Russia – No Financial Transaction Tax Currently Found.

Saudi Arabia – No Financial Transaction Tax Currently Found.

Senegal – (Financial Transaction Tax)- For Foreigners there is a tax of 1% on the value of securities and shares and other liquid assets “Simple Tax Guide For Americans In Senegal” n.d.).

Serbia – No Financial Transaction Tax Currently Found.

Singapore – (Stamp Duty)- In Singapore the rate varies with the type of document and transaction value. For shares purchased, the value of the shares transferred is taken to be the average price on the stock exchange as of the date of documentation. If no average price is available, the latest average price of the shares can be used. The stamp duty rate for the transfer of shares is 0.2% of the purchase price or the value of the shares (Burnleit and Girlat 2018, 17).

South Africa – (Securities Transaction Tax)- The tax rate of 0.25% is levied for transfers of shares in a company or member’s interest in a related corporation. STT applies to the purchase and transfer of listed and unlisted securities or depositary receipts. Transfers of securities where no change in beneficial ownership takes place or where the liability of the tax is less than ZAR 100 in respect of the transfer of all securities during a month are exempt from STT . The issue of new shares, a transfer of securities due to a reorganization or to a public benefit organization, and a transfer of shares in a headquarter company or a REIT are also exempt from STT (Burnleit and Girlat 2018, 18).

South Korea – (Securities Transaction Tax)- The Securities Transaction Tax (STT) is imposed on the transfer of stocks of a corporation or interest. The Presidential Decree prescribes the flexible rates of 0.15% for shares traded on the Korea Stock Exchange and 0.3% for shares traded on the Korean Securities Dealers Automated Quotations (KOSDAQ) or the Korea New Exchange (KONEX). For unlisted shares or interest a rate of 0.5% is imposed. The same rate applies on the transfer of shares or interest, but the government is authorized to adjust the tax rate in certain circumstances. OTC transactions settled outside the KOSDAQ are taxed at 0.5%. STT is applicable to both residents and nonresidents but is payable by the seller only (Burnleit and Girlat 2018, 18).

Spain – No Financial Transaction Tax Currently Found.

Sri Lanka – No Financial Transaction Tax Currently Found.

Sweden – No Financial Transaction Tax Currently Found.

Switzerland – (Stamp Duty) Switzerland imposes a transfer tax on both domestic and foreign securities when one of the parties is a Swiss Securities Dealer. The transfer of legal ownership on taxable securities (both equities and bonds) with the involvement of a Swiss Securities Dealer is taxed at a rate of 0.15% for Swiss securities, or 0.3% for foreign securities. There are a large amount of exemptions including transactions in Eurobonds and bonds denominated in a foreign currency are also exempt, as is securities trading by brokers for their own account, initial purchase of shares in resident companies, including those purchased through a bank or a holding company (note that there is a separate issuance tax in some cases), transfer of an option to acquire shares, redemption of securities for cancellation, initial purchase of bonds issued by foreign debtors and shares in foreign companies not denominated in Swiss currency, transfer of foreign money market papers, transfer through security brokers of foreign bonds whether in Swiss or foreign currency between two foreign parties and transfers due to intra-group reorganizations. There are also a large number of tax exempt investors such as Swiss and foreign collective investment schemes, foreign occupational pension funds and schemes and foreign social security institutions (Burnleit and Girlat 2018, 11).

Taiwan – (Securities Transaction Tax) STT is 0.1% of the transaction price of corporate bonds and other financial bonds government approved such as certificates issued by securities investment trusts and 0.1% for any other security approved by the Taiwanese Government. There is also a Futures Transaction Tax levied on both sides of the futures with varying rates. The tax is based on the transaction price of the contracts and/or the premium paid. These are: 0.0000125% on 30 days interest rate futures contracts, 0.000125% on 10 years government bonds futures, 0.002% on stock index futures contracts, 0.00025% on other futures contracts (i.e., gold futures), 0.1% on option contracts or option contracts on futures based on the premium paid (Burnleit and Girlat 2018, 18).

Thailand – (Stamp Duty)  Documents subject to stamp duty include transfers of shares and debenture certificates with a rate of 0.1% of the transfer value without a specified upper limit. Exempt from payment of stamp duty is the transfer of Thai government bonds and transfers of share, debenture and certificate of debt issued by a co-operative for agriculture or the Bank of Agriculture (Burnleit and Girlat 2018, 19).

Trinidad & Tobago – (Stamp Duty) The stamp duty charged is the greater of 5% of the value of the shares transferred or 5% of the consideration given, where the company is registered on the stock exchange. Where the company is not registered on the stock exchange, the stamp duty charged is the greater of $5.00 per $1000 of the consideration given or $5.00 per $1000 of the value of the shares transferred. No stamp duty applies to shares traded at the local stock exchange (Burnleit and Girlat 2018, 19).

Turkey – No Financial Transaction Tax Currently Found.

Ukraine – (Financial Transaction Tax)- Taxation of indirect transfer of shares in asset-rich companies: 15% withholding tax would apply to profit derived by nonresident companies in offshore transfer of shares that directly or indirectly derive their value from real property situated in Ukraine is to be adopted in 2020 (Servetnyk 2020). 

United Arab Emirates – No Financial Transaction Tax Currently Found.

United Kingdom – (Stamp Duty) The first is stamp duty which applies to instruments that transfer certificated shares  at a rate of 0.5%. The transfer is generally processed with a stock transfer form. No stamp duty is charged on: share transfers valued under £1,000, property that passes to the purchaser by delivery, transfers of U.K. government securities and other non-convertible loan stock, transfers between associated U.K. or foreign companies (subject to certain conditions), transfers under which a beneficial interest does not pass, eligible AIM (Alternative Investment Market), High Growth Segment securities, gifts. The second is a Stamp Duty Reserve Tax (SDRT) which applies to the oral or written agreement to transfer chargeable securities (usually electronic paperless share transactions in CREST) at a rate of 0.5%. Included in the definition of such securities are shares of a U.K.-incorporated company, shares of a foreign company with a register in the U.K., share purchase options, subscription rights, an interest in shares, such as an interest in the proceeds earned from selling shares. Exemptions from SDRT are available for transfers of listed securities to intermediaries who are members of a stock exchange in an EEA, or members of a recognized foreign stock/option exchange, stock lending and repos of listed securities on exchange, transfers of units in exchange traded funds, eligible AIM and High Growth Segment securities, transfers to charities. Stamp Duty Reserve Tax (SDRT) at 1.5% will apply if a transfer of shares into some ‘depositary receipt schemes’ or ‘clearance services’ takes place. This is when the shares are transferred to a service operated by a third party such as a bank (Burnleit and Girlat 2018, 12).

United States – (Financial Transaction Tax) A tax levied on security futures transactions will remain unchanged at $0.0042 for each round turn transaction (United States Securities And Exchange Commission 2020).

Uruguay – No Financial Transaction Tax Currently Found.

Venezuela – (Financial Transaction Tax)  The tax rate on Venezuelan large financial transactions is currently 2%, being raised in November of 2018. The following transactions will be subject to Venezuelan FTT, debits to bank accounts, correspondent accounts, trusts or demand deposits of any kind, liquid assets funds, fiduciary, and other financial market funds or any other financial instrument, in banks and other financial institutions, transfers of checks, securities, deposits in custody paid in cash and any other tradable instruments, after their second endorsement, acquisition of cashier’s checks, active transactions between banks and other financial institutions, securities transfers between different beneficial holders, payment of debts without financial system mediation, debits to accounts in private organized payment systems not operated by the Central Bank of Venezuela, cross-border payments. State-issued securities, certain tax payments and transfers of funds between accounts of the same beneficial owner are exempt from taxation along with the first endorsement made on checks, securities, deposits paid in cash and any other financial instrument, the transfer of funds by the account holder between its accounts at a bank or financial institution incorporated and domiciled in the Bolivarian Republic of Venezuela (this exemption is not granted for accounts with more than one holder), debits generated by the purchase, sale and transfer of the custody of securities issued or certified by the Republic or the Venezuelan central Bank, and of securities traded in the agricultural market and the stock exchange (Burnleit and Girlat 2018, 20-21).

Zambia – No Financial Transaction Tax Currently Found.

Countries/Entities with Proposed Financial Transaction Taxes

European Union – (Financial Transaction Tax) The Proposal allows for some customization of the EU FTT on a country-by-country basis. Although it outlines a minimum tax rate for the EU FTT, each participating Member State will be allowed to set their respective rates above the given minimum of 0.1% for equities and bonds, and 0.01% on derivatives (Burnleit and Girlat 2018, 14).

Hungary – (Financial Transaction Tax) [** Hungary will introduce a local FTT in case EU FTT is not agreed.] The purchase and sale of equities, bonds, and derivatives of both Hungarian and non-Hungarian issuance, securities lending transactions. Certain corporate actions The tax rate specified is 0.1% for securities and 0.01% for derivatives. The tax will become effective the first day of the year following the approval of an overall EU FTT (Burnleit and Girlat 2018, 13).

Portugal – (Financial Transaction Tax) [** Portugal will introduce a local FTT in case EU FTT is not agreed.] The Portuguese Parliament has approved general parameters for an FTT but a tax has yet to be implemented by the Portuguese government. The proposed tax covers the sale and purchase of the following instruments, shares, bonds, money markets, participation units, derivatives and structured financial products Under the proposed law, the expected FTT rates would be: 0.3% on equities, bonds, money markets, participation units and derivatives and 0.1% on high-frequency transactions (Burnleit and Girlat 2018, 13).

Spain -(Financial Transaction Tax) [** Spain will introduce a local FTT in case EU FTT is not agreed.] Draft Budget proposes a 0.2% rate to be levied on transactions executed by operators in the financial sector (Burnleit and Girlat 2018, 13).

United States – (Financial Transaction Tax) The tax would apply to the fair market value of equities and bonds, and the payment flows under derivatives contracts. The tax would apply to every transaction made in the United States or by a U.S. person, including retail investors (Smith 2019). There are various amounts suggested such as the one suggested by Senator Bernie Sanders an FTT levied at a rate of 0.5 percent on stocks, 0.1 percent on bonds, and .005 percent on derivatives. (Miller and Tyger 2020).*Tobin Tax- (Worldwide Financial Transaction Tax) Is a proposed International Financial Transaction Tax proposed by 1972 Nobel Prize winner in Economics James Tobin after the collapse of the Bretton Woods System that was passed post World War II, and made the U.S. Dollar convertible to Gold as Countries went off the gold standard, it was stopped during the height of the Cold War. It is suggested to be a small amount that since it would be Global could fix many of the Worlds problems such as hunger. It is similar to the European Union proposed Financial Transaction Tax just on a much larger scale although Countries such as Norway worry it would lead to the destruction of their financial system, as neighboring Sweden had a disastrous experience with Financial Transaction (Ravnaas 2012). 

References

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