Single instalment tax on gain on realization of assets (Capital Gain)
This is a tax required to be paid in a single instalment by an instalment payer who, in conducting an investment, obtains a gain from the realization of an interest in land, petroleum or mineral rights or buildings situated in the United Republic shares or securities held in resident entity.
Computation of Gain
Person's gain from the realization of an asset is the amount by which the sum of the incomings for the asset exceeds the cost of the asset at the time of realization.
Applicable tax rates on gain on realization
A single instalment tax on gain in respect of realization of an interest in land or buildings, shares or securities is charged at the following rates;
- 10% of gain in the case of resident persons
- 20% of gain in the case of non-resident persons
A single instalment tax on gain in respect of realization of an interest in petroleum or mineral rights is charged at the rate of 30%
Tax Credit for Single Instalment Tax
An instalment payer shall be entitled to a tax credit for a year of income in an amount equal to the income tax paid by way of single instalment for the year of income
Payment and Transfer of a title to an investment
A single instalment tax on gain is required to be paid before the title to an investment asset is transferred. The appropriate authorities for registration, transfer or approval shall not register such transfer or change of name without the production of a certificate of the Commissioner certifying that the instalment has been paid or that no instalment is payable.