Stamp duty in the United Kingdom
The stock transfer tax is a transfer tax is levied on the turnover from trading in securities when the transactions are completed at home or with the participation of at least one resident person abroad. As securities within the meaning of the tax law bonds are ( bonds), equities and mutual fund shares ( investment savings ).
History of the stock exchange turnover tax in Germany
Following the British example, the Stamp tax the certificates of certain securities purchases have been charged with a rich uniform stamp duty to the Reich Stamp Act of 1881. As of 1885, the securities transactions tax base and percentage tax rates were subjected. The transfer tax law of 1922 introduced the concept of the stock transfer tax. The old stamp duty was merged with the company and securities tax. From September 1944, the stock transfer tax was suspended, but reinstated in 1948. From 1949 there was a tax that state the countries. The advent was to on the collar since the constitutional amendment of 1969.
The stock transfer tax has been calculated in Germany, depending on the type of security with 1 ‰ for public bonds and 2.5 ‰ of the market value for other fixed-income securities and shares and are presented separately in the securities accounts. In special cases, such as with subscription orders but was not charged.
In 1991, this tax was abolished by the first Financial Market Promotion Act in Germany.
Situation in other countries
In the United States there was to 1966, a stock transfer tax of 0.4 % last and was then abolished. Since there is only one federal state -dependent wealth transfer tax, for example, in New York in the amount of 5 cents per share and a maximum of $ 350 per transaction.
Also in other countries the stamp duties were abolished, as in Luxembourg in 1987, in Spain in 1988, in the Netherlands in 1990, in Denmark in 1999, in Japan in 1999, in Austria in 2000 by the Capital Market Offensive law in France in 2008 and Italy in 2008.
In the UK there is the Stamp duty reserve tax ( SDRT ), an existing since 1694 stamp duty for trading in shares of domestic companies participated in the Stock Exchange and the British state in the year 2007-08 thus 6.1 billion euros a. Due to the financial crisis, tax revenues declined in 2008-09 to around 4 billion euros.
A fiasco was not generated more than 9 million euros the introduction of the stock transfer tax in Sweden in 1985. Instead of the estimated revenue of 165 million euros a year converted. This was due to the collapse of the trade turnover by 85 % in fixed income securities and derivatives trading in futures and options to virtually zero. In 1992, the tax was abolished.
Switzerland levies for the purchase and sale of securities, a stamp duty of 1.5 ‰ for domestic securities and 3.0 ‰ for foreign securities, with numerous exceptions and exemptions for institutional investors, funds and insurers exclude a comprehensive taxation.
In Belgium, a stock transfer tax of 0.17 % on purchase / sale of Belgian or foreign, publicly traded stocks, bonds and other securities, not more than 500 euro exists. There are also for purchase / sale of Belgian government debt a special tax rate of 0.7%.
In Greece, there is a Stock exchange tax on the purchase or sale of Greek or foreign, listed shares of 0.15%.
Since October 2009, foreign investments in stocks and bonds in Brazil with a lump sum transfer tax of 2 % may be charged to a further appreciation of its currency to counteract by inflowing foreign capital.
Since January 1, 1994 there are in the People's Republic of China stock market tax or stamp duty as a regulatory instrument on Chinese stocks by 0.1 %, which increased in May 2007 to 0.3%, reduced again to 0.1 % in April 2008 and 2008 purchase orders were freed quite like this in October.
Europe Legal Situation
Directive 2008/7/EC of 12 February 2008 of 12 February 2008 specifies in Article 5, paragraph 2, the movement of capital, one of the four fundamental freedoms of the EU. A survey of a stock market tax under the provisions set out in Article 6 § 1 of the RL conditions but explicitly allowed.
Political discussion
A re-introduction is always the subject of political discussions. At a tax rate of 0.1 %, according to the Austrian Institute tax revenue would be generated by about 35 billion euros for Economic Research in Germany.
Oskar Lafontaine demanded in November 2008, a tax of 1 %, which would arise after his statement, tax revenues of around € 70 billion, equivalent to 13% of total tax revenues of about € 538 billion ( 2007). The turnover of all stock exchanges in Germany in 2009 was 1.3 trillion euros (2008:. EUR 2.47 bio).
All of these calculations assume that the trading volume by the introduction of a stock transfer tax would remain unchanged. This assumption, however, is not economically plausible. The isolated introduction of a stock transfer tax in a country probably resulted in displacement of parts of trade to countries without stock transfer tax. Even if such relocation could be stopped, some of the arbitrage trade would inevitably disappear because its costs would be higher than the income from the tax.
For these reasons, the entire movement of capital taxes in the UK carry only about 0.5 % of the total tax revenue and the United States to less than 0.5%.
The SPD chancellor candidate Frank -Walter Steinmeier and German Finance Minister Peer Steinbrueck proposed in February 2009 prior to the reintroduction of the stock exchange turnover tax of 0.5 % on the British model.
In January 2010, the North Rhine-Westphalia, Jürgen Rüttgers (CDU ) also called for the introduction of a stock transfer tax.
According to the proposal of the EU at the G20 meeting in June 2011 into a global financial transaction tax and the decision on the German - French Economic Summit in August 2011, is heated debate over the introduction of a pan-European stock exchange tax
Economic impact
In economics, stamp duties are often critically evaluated, as this lowered the transaction costs, the efficiency of the securities markets. So put Karl Friedrich Meier and Andrei Kirilenko Haber stated in a study by the IMF that transaction taxes have negative effects on volatility and liquidity of markets and lead to a lower information efficiency. In a study of changes in the Finnish and Swedish stock exchange tax Peter Swan and Joakim Westerholm have found that a reduction of transaction costs, to significantly lower volatility leads.
Rüdiger von Rosen, head of the German Stock Institute, warns of adverse effects for " direct and indirect investors, for example in equity funds and 2.4 million contractors from Riester share savings contracts and millions of policyholders". This group one had to " enhance the grounds of necessary private provision and strengthen ." In addition, there was in Germany with the withholding tax is already very high in international comparison taxation of equity returns.
Proponents maintain the contrary a positive contribution to reducing speculative investments because current assets shifts are relatively more expensive to long-term investments, as opposed to a final withholding tax, are taxed at the dividend and capital gains alike. This idea underlies the assumption that an investment that is made with a view of an expected dividend, compared with an investment that is made based on expected gains, is more useful for the overall economy.
To this end, the profit margin to be reduced in equities trading, which is equivalent to an intentional reduction in efficiency of the securities markets. Keynes assumes that then speculation, which he describes as predictions of market psychology can be reduced. This also aims to market overreactions, for example after a terrorist attack, inevitable as investors have already invested in the long term and in view of stock dividends.