Tax on Capital Transfer Income BASIS FOR ASSESSMENT Capital invested The basis for assessment of capital transfer income is & Assessable income CIT rate CIT Assessable CIT * = Payable income rate Assessable Related Transfer = Cost of income costs proceeds- capital- Tax on Capital Transfer Income TRANSFER PROCEEDS Capital invested Transfer proceeds are the by total amount actually received an transferor in accordance with an transfer contract In case of deferred sale or credit sale, transfer proceeds do not include from late payment interest If an transfer contract does not clearly specify the amount of proceeds, or the tax authority has grounds for considering that the proceeds are not the market price, the tax authority will have the to the correct amount re-determine 43
Tax on Capital Transfer Income BASIS FOR ASSESSMENT Capital invested The basis for assessment of capital transfer income is Assessable income & CIT rate CIT Payable = Assessable income * CIT rate Assessable income = Transfer proceeds- Cost of capital- Related costs Tax on Capital Transfer Income TRANSFER PROCEEDS Capital invested Transfer proceeds are the total amount actually received by an transferor in accordance with an transfer contract In case of deferred sale or credit sale, transfer proceeds do not include interest from late payment If an transfer contract does not clearly specify the amount of proceeds, or the tax authority has grounds for considering that the proceeds are not the market price, the tax authority will have the to re-determine the correct amount 43
1012_VS-CIT%20Slides%20(Trainer).docx