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What Stock Exchange investors do to pay lower tax

28.06.2010, 21:03 9

Stock Exchange investors holding profitable stocks for more thana year have two more days to sell them benefiting from a 1% tax ongains, compared to the 16% tax that will come into effect startingJuly 1 in the wake of fiscal code changes. Brokers say investorsand businesspeople who acquired major stakes in a company or boughtcompanies several years ago at very low prices can generatesignificant savings if they transfer them to a company or to arelative, paying a 1% tax on derived profit, instead of the 16% taxthat will apply starting July 1. Recently, there have been risingcases where investors have successively sold and bought shares,thus cashing in on previous profits, so as to avoid the 16% tax.Another alternative being used, also less costly, is that oftransferring the stake to a relative, in order to limit tradingcosts.

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