What is the tax treatment that will apply to capital gains on the sale of shares?
• Capital gains on the sale of shares are taxed where the gross amount of sales made during the year by the taxpayer or joint taxpayers is equal to €25,000 or more (for 2008). Where this threshold is crossed, the total amount of the capital gains generated becomes taxable (as from the first euro). The capital gains will be taxed on the basis of a fixed percentage of 16%, plus 11% in social security contributions and social levies, i.e. total taxation of 27% since 1 January 2005. Further information about the tax deductions applied due to the length of the holding period for the shares: A tax deduction of one third per year of holding of the shares as from the sixth year is applied to the net gain on the sale. This treatment applies to sales of shares made as from 1 January 2006; the holding period is however only calculated as from 1 January 2006 for shares purchased prior to that date. Since 2006, the holding period is calculated on the basis of a full calendar year; shares purchased
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