WE wish to update you on two changes proposed through the Finance Bill, 2019, relating to the above.
- The Bill proposes to increase the rate of Capital Gains Tax (CGT) from 5% to 12.5%
- It is proposed that when calculating the capital gains tax payable, no gain shall be included in the computation of income in the case of a transfer of property that is necessitated by a transaction involving reconstructing of corporate entity. This change will apply in transfers in transfers made (a) in order to comply with a regulatory requirement or directive (b) in the course of compulsory acquisition by the government (c) as a result of an internal restructuring within a group which does not involve transfer of property to a third party and (d) in public interest
The above changes shall come into force on October 1, 2019 if passed into law.