The following plans and tax incentives are available to both
investors and listed companies.
Foreign Investor - specific:
- The foreign investors are freely allowed to operate in the
capital market without any retention period.
- There are no restrictions on the extent of foreign
ownership stake and also no limit for holding the shares for
- Funds invested in the capital market are freely
transferable along with dividend income.
- Foreign investors are treated at par with local investors
in tax treatment.
Local Investor specific:
- Capital gains on sale of listed securities are exempt from
income tax up to the year 2010. This exemption is available
- The dividend is subject to withholding tax at 10%.
- Dividend income is taxed as a separate block of income in
the hands of individual shareholders.
- Any income derived from TFC's is subject to income tax
with effect from income year 2001 – 2002.
- Listed companies are taxed at 35%.
- Provident funds can now invest in approved listed
securities. They are also allowed to invest in open end mutual
funds established under the Asset Management Companies Rules
- No turnover tax is payable by companies on their turnover
representing transactions in securities listed on stock