New Taxation Policy on the Horizon

The government is contemplating a significant shift in how stock profits are taxed, moving from a flat rate on transactions to a 20% tax on profits. This change aims to address the current system where taxes are applied irrespective of profit or loss.

Key Details of the Proposed Tax Changes

In scenarios where the purchase price and associated costs are indeterminable, the tax would be set at 0.1% of the securities' sale price. For stake transfers, the ministry is considering a 20% tax on taxable income, with a 2% rate if purchase details are unclear.

International Comparisons and Expert Opinions

The proposed adjustments are inspired by global practices, with countries like Indonesia, the Philippines, and Japan adopting varied taxation methods on securities. Experts advocate for taxing only profits, aligning with international standards to foster a fairer market environment.

This policy revision reflects a broader trend towards harmonizing tax practices with global norms, aiming to create a more equitable and efficient financial ecosystem.