FAQ

Trading

Italian Financial Transactions Tax

What is IFTT?

IFTT is a new financial transactions tax which was effective from 1 March 2013. Any transaction of shares or other financial instruments on Italian resident companies is subject to this tax.

Disclaimer
This Frequently Asked Questions (FAQ) aims to provide general information regarding the Italian Financial Transactions Tax (IFTT) which was effective from 1 March 2013. Clients should seek professional advice should they have enquires regarding the taxation consequences of trading/dealing stock(s) and derivative warrants of any companies registered in Italy. The information in this FAQ is based on public information and the content thereof has not been independently verified by Italian lawyers or tax advisors. Sun Hung Kai Financial (SHKF) does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKF expressly disclaims any liability and warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any person relying upon this FAQ.

Last Update: 2016-07-08

What is the tax rate of IFTT?

The applicable tax rate to the transfer of shares performed on the Hong Kong Stock Exchange is 0.22% for 2013. The applicable tax rate to the transfer of related derivatives is the fixed amount per contract based on the notional value of the contract, ranging from 0.01875 to 200 Euros.

Disclaimer
This Frequently Asked Questions (FAQ) aims to provide general information regarding the Italian Financial Transactions Tax (IFTT) which was effective from 1 March 2013. Clients should seek professional advice should they have enquires regarding the taxation consequences of trading/dealing stock(s) and derivative warrants of any companies registered in Italy. The information in this FAQ is based on public information and the content thereof has not been independently verified by Italian lawyers or tax advisors. Sun Hung Kai Financial (SHKF) does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKF expressly disclaims any liability and warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any person relying upon this FAQ.

Last Update: 2016-07-08

What is the taxable value?

The taxable value is calculated on the net increase in the stockholding by reference to the daily transactions on the particular shares.

Disclaimer
This Frequently Asked Questions (FAQ) aims to provide general information regarding the Italian Financial Transactions Tax (IFTT) which was effective from 1 March 2013. Clients should seek professional advice should they have enquires regarding the taxation consequences of trading/dealing stock(s) and derivative warrants of any companies registered in Italy. The information in this FAQ is based on public information and the content thereof has not been independently verified by Italian lawyers or tax advisors. Sun Hung Kai Financial (SHKF) does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKF expressly disclaims any liability and warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any person relying upon this FAQ.

Last Update: 2016-07-08

Is the tax rate fixed?

No, the tax rate and related regulations are subject to change without prior notice

Disclaimer
This Frequently Asked Questions (FAQ) aims to provide general information regarding the Italian Financial Transactions Tax (IFTT) which was effective from 1 March 2013. Clients should seek professional advice should they have enquires regarding the taxation consequences of trading/dealing stock(s) and derivative warrants of any companies registered in Italy. The information in this FAQ is based on public information and the content thereof has not been independently verified by Italian lawyers or tax advisors. Sun Hung Kai Financial (SHKF) does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKF expressly disclaims any liability and warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any person relying upon this FAQ.

Last Update: 2016-07-08

Why am I unable to purchase any stock in connection to the Italian IFTT via SHKF platform?

The IFTT is a newly imposed tax under the financial transactions tax law of Italy. At this stage, SHKF is consulting professional advice on the IFTT related issues. To minimise extra administration charges (if any) to our clients, SHKF will stop accepting any purchase order on any stock and derivative warrants in connection to the IFTT (e.g. PRADA S.p.A., stock code 01913 and its related warrants) before the consultation is completed, until further notice.

Disclaimer
This Frequently Asked Questions (FAQ) aims to provide general information regarding the Italian Financial Transactions Tax (IFTT) which was effective from 1 March 2013. Clients should seek professional advice should they have enquires regarding the taxation consequences of trading/dealing stock(s) and derivative warrants of any companies registered in Italy. The information in this FAQ is based on public information and the content thereof has not been independently verified by Italian lawyers or tax advisors. Sun Hung Kai Financial (SHKF) does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKF expressly disclaims any liability and warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any person relying upon this FAQ.

Last Update: 2016-07-08

Does the IFTT have any impact if I sell the stock regarding the IFTT?

No. But this may be subject to any changes without prior notice.

Disclaimer
This Frequently Asked Questions (FAQ) aims to provide general information regarding the Italian Financial Transactions Tax (IFTT) which was effective from 1 March 2013. Clients should seek professional advice should they have enquires regarding the taxation consequences of trading/dealing stock(s) and derivative warrants of any companies registered in Italy. The information in this FAQ is based on public information and the content thereof has not been independently verified by Italian lawyers or tax advisors. Sun Hung Kai Financial (SHKF) does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKF expressly disclaims any liability and warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any person relying upon this FAQ.

Last Update: 2016-07-08

Back To Top