previous
next

(f) Gain from the Purchase and Sale of Real Estate, Securities or Personal Property

51. These profits are only taxable in case they are considered to be part of the income derived from the business activity of the enterprise within the country. A foreign company, which has no establishment here, is not taxed for the gain derived from the purchase and sale of real estate or securities. If such company has such an establishment here, and is therefore considered a taxpayer, the profits derived from the sale of any assets belonging to the N.E.I. business — e.g., plant, rubber or tea estates — or gain from purchase and sale of securities purchased out of reserve funds, such profits are included in the taxable income of the accounting year. The Company-Tax Ordinance includes profits acquired through the disposal of goods not intended for sale, and, in general, every gain made through such transactions, even if received after the business has ceased to operate.

previous
next