WHAT IS CAPITAL GAINS TAX (CGT)?
Capital Gains Tax (CGT) is a tax on capital ‘gains’. If and when you sell or give away an asset and it has increased in value, you may be taxable on the ‘gain’ (profit). More specifically, Capital Gains Tax is: • Calculated on the basis of the difference between the value of acquisition plus expenditures (such as improvements and deductible costs) and the value of sale. These values depend on the price agreed between the vendor/s and purchaser/s. • Associated with the personal income of the person obliged to make payment. In the case of a non-resident the effective rate of tax from the 1st January 2007 is 18% of the Capital Gain. (Prior to 1st January 2007 it was 35% of the Capital Gain). 2.
