« previous next »
Pages: 1 2 [3]

Author Topic: Wait. ETF sales are ALWAYS taxed as CGT?  (Read 18230 times)

gcr

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +28/-1
    • View Profile
Re: ETF's and tax.
« Reply #30 on: February 24, 2016, 01:01:22 pm »
According to Old Mutuals site dealing with Tax Free Savings account they make the statement
"Pay  no tax on your investment.
$ You pay no tax on your investment growth or when you take your money out
$ You pay no tax on dividends, capital gains or interest"

So those saying you will have to address CGT and dividends tax need to be mindful of what OMSA are saying because both can't be right

So lets stop the slagging off of forumites and their informants and lets rather deal with facts as they stand at present - why even Pravin could tweek the rules of the TFSA this afternoon
Logged
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Orca

  • Hero Member
  • *****
  • Posts: 2274
  • Karma: +54/-3
    • View Profile
Re: ETF's and tax.
« Reply #31 on: February 24, 2016, 01:26:33 pm »
@gcr. I cannot open a TFSA as I am not resident so I am not interested in that. Also the amounts some people invest are far too huge for TFSA's.
Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2274
  • Karma: +54/-3
    • View Profile
Re: ETF's and tax.
« Reply #32 on: February 24, 2016, 06:39:24 pm »
Grindrod kindly sent me a pdf doc of all ETF's and UT's registered as CIS' with the FSB. Unfortunately, the one's we have such as DBX, DIVTRX and STX ETF's are all registered as CIS.
https://www.fsb.co.za/Departments/cis/Pages/approvedSchemes.aspx
Logged
I started here with nothing and still have most of it left.

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2550
  • Karma: +47/-2
    • View Profile
Re: Wait. ETF sales are ALWAYS taxed as CGT?
« Reply #33 on: May 25, 2016, 10:37:20 am »
We never actually resolved this. This link http://www.moneyweb.co.za/mymoney/moneyweb-personal-finance/how-is-tax-calculated-when-you-sell-an-etf/ still says CGT only, but nobody managed to confirm it, and my research also hasn't unearthed anything yet. Has anyone tested the waters on this?

Edit: Just found the other thread Orca opened where a very well qualified tax expert has also confirmed, ETFs are only taxed as capital gains. This is good news to me as I only own ETFs... Two threads merged.
« Last Edit: May 25, 2016, 12:27:57 pm by Patrick »
Logged

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Wait. ETF sales are ALWAYS taxed as CGT?
« Reply #34 on: May 25, 2016, 02:11:49 pm »
Quote from: Moonraker on December 03, 2015, 03:02:13 pm
You know, I have never invested in either unit trusts nor ETFs but it appears that both those are subject to CISS 'rules' and Section 9(c) is not relevant here, so there is no 3 year rule stuff for the individual investor. (CGT is paid within the funds and the investor is only subject to CGT on disposal even if they dispose within 3 years).
Don't know if I am correct, hence 'appears' in bold.

That's what I thought. CISS rules are CISS rules.
Logged
Pages: 1 2 [3]
« previous next »