RE: Red Braces Brigade18 Jan 2021 10:24
m...I have had a "notice" from ii regarding Financial Transaction Tax on foreign stocks and it says the 0.2%, in the case of Spain) tax is paid on purchase. However, the impression I get is that one would have to be buying IAG on Spanish stockmarket in euros to be charged the 0.2% tax. It certainly isn't clear though.
Here is what I received............
A financial transaction tax (FTT) is a fee on trades of financial instruments, such as stocks, bonds, and derivatives. Such taxes are promoted as having the dual benefits of discouraging short-term speculation while generating significant revenue.
Under an FTT, a percentage of the asset’s value is paid in taxes when it is traded. For example, if an investor buys an asset worth €1,000, they would be charged €2 on the transaction under a 0.2 percent FTT. FTTs usually apply only to select financial instruments and often have varying tax rates depending on the asset type.
The FTT will apply regardless of where the acquisition is made and wherever the residence or the place of establishment of the persons or entities involved in the acquisition.
More than 30 countries currently have FTTs on particular asset classes, those offered on the Interactive Investor platform are specified below.
Implemented financial transaction taxes
France
On 1 August 2012, France introduced a financial transaction tax. The FTT levies a 0.2% tax on stock purchases of French publicly traded companies with a market value over €1 billion.
Italy
Since 1 March 2013, Italy levies financial transaction tax on qualified equity transactions of up to 0.22% of the value of the trade. It is applicable to shares issued by Italian resident companies with a capitalization equal or higher than 500 million euros.
Spain
From January 2021 Spanish securities with a market capitalisation exceeding €1 billion will be subject to a 0.2% Spanish Financial Transaction Tax.
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