The tax incentives to encourage investments in capital markets are:
– Capital gains are tax exempt
– New quoted firm with effect from 1st January 2003 will have a lower corporate tax rate of 25% p.a for the first 5 years of quotation.
– Venture capital firms enjoy a ten year tax holiday
– The withholding tax on dividends is only 5% which is final tax
– Flotation costs of newly quoted firms and tax allowable expenses
– The transfer of securities is exempted form stamp duty and VAT
– Income of collective investment scheme is tax free.
The CMA (Capital Markets Authority) has put in place several tax incentives to encourage investments in capital markets. Highlight some of the tax incentives by the Capital Markets Authority.
