Capital gains tax liability

Badge


Joined: 11/09/2010
Posts: 39

Message Posted:
01/04/2011 10:18

Does anyone know the law on capital gains tax,we have sold our house and using the first sale waver we should not pay tax however we have been told that as we own 1.4 dunams we will have to pay tax on the 0.4 dunams even tho we paid all taxes on purchase in 2002, does anyone know the rate of tax and is it at todays value or at purchase in 2002 any advice would be appreciated

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
01/04/2011 10:21

if you have sold your house - you are probably using a lawyer - i'd ask them for a definitive answer.........



one of the problems with a forum is that very often advice can be misleading.........

yenibob


Joined: 13/10/2010
Posts: 1203

Message Posted:
01/04/2011 10:35

If you get 10 replies they will contain 11 opinions...None of which are likely to be correct.

stellasstar1



Joined: 02/07/2008
Posts: 1519

Message Posted:
01/04/2011 10:44

Yes, go to the proper place for correct advice.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
01/04/2011 10:45

Bob and NN, does that include me?

There is no Capital Gains Tax in TRNC, full stop.



However there is "Stopaj" which means "stopping at source" and this is something that professional vendors pay against their income tax in advance e.g. Suppose they paid 5000 TL in Stopaj that year and suppose your income tax liability for that year is 7000 TL. You simply pay another 2000 TL. If you sell more than three pieces of land in one year then you are classed as a professional vendor, otherwise not.

ismet

Badge


Joined: 11/09/2010
Posts: 39

Message Posted:
01/04/2011 10:50

In 9 years here we have dealt with two lawyers well known professional companies got ripped of twice and forewarned is forearmed hence question

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
01/04/2011 11:19

mess 5 - not you Ismet !!



but you not always here.........



OP - please note Ismet is your man - he knows everything trnc............

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
24/06/2011 16:18

Saw a solicitor today and she said i will have to pay capital gains tax on the profit i make on the sale of my house in trnc. But i forgot to ask how much percentage it is. Now reading Ismets past comment i dont know what to do!

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
24/06/2011 16:19

Could she have meant capital transfer tax?

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
24/06/2011 17:24

Barry Msg 1 & Dermici Msg 8 - I am just making an assumption that you are both talking about North Cyprus and not the UK am I correct?t Ismet's comment in msg 5 would only apply to the TRNC (Ismet would also be correct and is possibly the only source on Cyprus44 that might be accurate see msg's 2, 3 & 4).

Sideways



Joined: 21/01/2009
Posts: 529

Message Posted:
25/06/2011 00:15

Message 1,



Yes, you will have to pay tax I was told it is @ 5%

My property was on 3 donums and was charged 5,600 TL, how they work it out god only knows.

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
25/06/2011 11:44

also believe if you sell your house for more then you paid you have to pay the builders tax difference

frankedad


Joined: 21/11/2008
Posts: 346

Message Posted:
25/06/2011 12:39

good knowledge Ismet.. could you advise .. my friend paid £110 k plus further expenditure of 10k for his villa , he has had an offer of £145k does he have to pay anything on the profit of 25K ? thanks all

frankedad


Joined: 21/11/2008
Posts: 346

Message Posted:
25/06/2011 12:40

1 donum plot by the way

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
25/06/2011 13:19

i think he does 4%