public or private, which form the object of any transaction in Italy, are subject to a stamp tax in the following measure: Nominative securities.-(a) When the par value of the security does not exceed 400 lire, for each security a graduated tax ranging from 0.20 to 1 lira, according to amount. (b) When the par value of the security exceeds 400 lire, for each security or for each page, if the security consists of more than one page, a tax of 1 lira. Bearer securities.-(a) When the par value of the security does not exceed 400 lire, same as above. (b) When the par value of the security exceeds 400 lire, for each security as follows: 400 but not 500 lire---- Lire 1 2 3 4 6 10 This stamp tax is payable only once, at the time of the issuance of the securities. TAX ON THE NEGOTIATION OF ITALIAN SECURITIES For the negotiation or circulation of Italian securities of all kinds, in addition to the stamp tax payable at the time of their issuance, there is also due an annual tax in the measure indicated below. This tax applies not only to securities, but also to the financial interests of the different partners in the case of limited partnerships or companies (societa in accomandita semplice) when such are transferable. Securities of all kinds issued by Provinces, communes, or bodies other than commercial or civil companies, 2.50 lire per 1,000 lire. Securities of all kinds issued by commercial or civil companies: If to bearer, 4.50 lire per 1,000 lire; if nominative, 2.50 lire per 1,000 lire. Shares owned in limited partnerships or companies (societa in accomandita semplice), when transferable: If to bearer, 4.50 lire per 1,000 lire; if nominative, 2.50 lire per 1,000 lire. The above tax is assessed on the actual value of the securities on the basis of their average price on the bourse during the preceding year, or, when the securities are not quoted on the bourse, on the basis of an expert appraisal made by the brokers' association of the local bourse. Payment is due in semiannual installments as of January 1 and July 1 of each year. All companies or other bodies issuing negotiable securities subject to the tax must report such securities to the registry office of the district in which they have their main office, indicating the number of the securities and their par value. TAX ON THE CAPITAL OF FOREIGN COMPANIES All foreign companies or other bodies, including insurance companies, which operate in Italy are subject to an annual tax of 4.50 lire per 1,000 lire on their capital. This tax applies to all capital set aside for their operations in Italy, or to the total capital actually employed in Italy where the amount of the latter is greater than that set aside. The companies in question must on beginning operations. tha ior report the nature of their business, the amount of capital set aside. or employed for their operation in Italy, the location of their main offices and branches, and the name of their responsible representatives. TAX ON THE PURCHASE OR SALE OF SECURITIES All contracts, whether made within or outside of the bourse, which have for their object Italian or foreign securities of any kind, are subject to a special tax in the measure indicated below: Cash or time contracts between authorized brokers- Concluded directly by the contracting parties_ Concluded between bankers and private persons Concluded with the intervention of an authorized broker___ Lire 0.10 80 .60 .60 (The tax is reduced to one-half in the case of Government securities or securities guaranteed by the State.) Time contracts whose duration does not exceed 40 days: Concluded directly by the contracting parties-- 2.40 Concluded with the intervention of an authorized broker_. 1.20 Contracts for carrying securities whose duration does not exceed 40 days: .50 Concluded directly by the contracting parties---. Concluded with the intervention of an authorized broker-- 6.00 3.00 SPAIN James G. Burke, Assistant Trade Commissioner In Spain no distinction is made between stocks and bonds in the tax on securities. While the tax imposed on issue is on the par value, the tax on sales is based on the sales price. A provision is made as to no-par-value stock. Article 159 of the law of 1920, quoted below, states "that issues without par value expressed will be taxed at the rate of 2 pesetas per share or bond." The law governing the taxation of the issue and sale of stocks and bonds is the Spanish "Ley del Timbre del Estado" of April 29, 1920. The tax on the issue of stocks and bonds is regulated by article 158 of the above-mentioned law, which states as follows: All shares, certificates, or extracts of same, and all other kinds of equivalent securities representing capital of banks, corporations, companies, etc., engaged in credit, railway, commercial, industrial, mining, or any other kind of activity, whether they be for fixed amounts or for a proportional part of a fixed capital, shall be subject, when their duration does not exceed 10 years, to the payment of a stamp determined by the following sliding scale: This stamp does not preclude the necessity for affixing the special revenue stamp (timbre móvil) which must be attached to partial receipts for installments paid, according to their amount, whenever that amounts to as much as 5 pesetas. When shares are valued at more than 50,000 pesetas each, they will furthermore bear revenue stamps (timbres móviles) corresponding to the excess over and above this amount at the rate of 2 pesetas per each 1,000 pesetas or fraction thereof. Titles, certificates, or memoranda of registry which comprise two or more shares must pay the stamp tax for each share according to the value of that share. The tax on the sale of stocks and bonds is regulated by article 22 of the same law, which states: Contracts for the sale of public securities, mercantile or industrial shares, or merchandise, whether specifying payment in cash or time; certifications of sale in cash transactions carried on by a properly licensed exchange broker; contracts regarding the negotiation of transferable securities and denouncements to prevent negotiations of securities made out to bearer, must be made out precisely on stamped paper sold for this purpose by the Government. The basis for the amount of stamp on contracts covering cash transactions shall be the real amount of the transaction according to the following scale: The taxation of securities in Switzerland is governed by the Federal law of June 25, 1921, entitled "The Federal stamp tax on coupons," and the executive order of November 15, 1921. STAMP TAX ON COUPONS The Federal stamp tax law on coupons became effective December 15, 1921. The coupons and similar documents falling due after that date on Swiss securities enumerated below come under this stamp tax: (a) Securities, perpetual bonds, and annuities, mortgage bonds, short and long term bank bonds, bonds issued by the (Swiss) Confederation, Federal Railways, or independent corporations under Federal law, as well as Cantons and municipalities. (b) Mortgage notes, perpetual bonds, and annuities issued in series, bonds guaranteed by real estate, conforming to article 875, C. C. S. (c) Ordinary shares and shares of cooperative societies. (d) Shares (issued without present value) contingent upon future created values. The stamp tax is assessed as follows on Swiss securities: Two per cent on the coupons and similar documents of securities, perpetual bonds, and annuities, mortgage bonds, short and long term bank bonds, mortgage notes issued in series and guaranteed by real estate, conforming to article 875, C. C. S. Three per cent on coupons and similar documents of securities, shares of cooperative societies, and bonds contingent upon future created valu s. Six per cent on securities at a premium drawn by lottery with the premiums. The coupons of foreign securities at a premium which have been placed on the Swiss market the same as the premium on foreign securities, if issued in Switzerland or admitted to quotation on a Swiss stock exchange after the coming into effect of this law, are subject to the same tax. The tax on the coupons of shares of Swiss cooperative societies is not collected if the amount of the tax is less than 5 centimes per coupon. The tax is not collected on the coupons of Swiss (Federal) securities and bank bonds issued before the going into effect of the law with tax-exemption guaranty by the Confederation, by the Federal Railways, and by the Cantons. The payment of coupons of communal bonds, of other corporations, and of private companies is effected without the deduction of the tax, if the debtor has assumed the tax before the going into effect of the law. There are certain issues of which the coupons are payable without reduction of the tax. A list of these comprises the obligations issued before the entering into force of the present law by the Government of the Swiss Confederation, the railroads, the Cantons, and certain other enterprises, with the guarantee of tax exemption. If these securities are issued without coupons, the document which is intended to prove the payment of interest, annuities, or shares, either of the profits or of the capital itself, is subject to the stamp tax. The stamp tax is calculated, in the case of coupons, on the amount paid by the debtor of the coupon; in the case of obligations drawn with a premium, on the premium; and when other documents are concerned, on the interest or the share in the profits which are paid or entered on account. This tax is due on coupons when they fall due; on documents assimilated to coupons when the interest, share of profits, or premium is due; and on the fractions of interest in the case of repayment of obligations before the due date of the coupon, whenever said payment is made. The debtor of the coupon belonging to Swiss securities must pay the tax. He deducts the amount of the tax from the amount given in payment of the coupon. In the case of foreign securities the tax on the coupons is paid by the representative in Switzerland. The Executive order of November 15, 1921, fixes the details of the administration of the law of June 25, 1921. The following translation was submitted by Consul Thornwell Haynes, Berne: ART. 2. Exempt from the obligation to pay the tax, as per article 8, paragraph 2, of the law, at the rate of at least 5 centimes per coupon, are such persons subject to the payment of the tax who at the time of payment of the coupons do not increase the amount of the tax, or who only increase the total amount of the stamp tax due on coupons presented simultaneously by one owner. ART. 3. If coupons or documents similar to coupons are made out exclusively or alternatively in Swiss francs, this currency is decisive for the calculation of the tax. Otherwise the values stated in a foreign currency must be converted for the calculation of the tax, and this at the rate of exchange at which the payment of the coupons or of documents similar to coupons is uniformly effected in Switzerland, according to instruction of the coupon debtor. If no such instruction exists, the conversion must be effected at the rate of exchange which, on the day of maturity of the coupons, was publicly quoted or otherwise ascertained. If the values are stated in several foreign currencies, the conversion must be made from the amount of the currency of the country of origin, and if this be not stated from such currency which, when converted, gives the highest amount in Swiss francs. STAMP TAX ON COUPONS OF SWISS SECURITIES A. Stamp tax on coupons of loan bonds, annuity titles, mortgage letters, notes of hand, and “gülten" (or lettres de rente) issued in series, as well as on coupons of documents similar to those mentioned above ART. 4. The person owing the coupons is liable, within a period of 15 days after every date of payment of coupons, interests, premiums, or of repayment of capital, to transmit to the Federal tax administration, on a separate form, a statement regarding the interests and premiums due for payment. The tax must be remitted simultaneously with the transmission of the statement. B. Stamp tax on the coupons of cash bonds, cash notes, and deposit certificates, credit interests for bank balances at long term, and on other documents similar to coupons of cash bonds ART. 5. The coupon debtor is obligated: (a) To keep for every fiscal year, in his account books and yearly accounts, separate records as to the state of the cash bonds, cash notes, and deposit certificates, and of the interests and part interests due thereon; (b) To keep similarly separate accounts of the bank deposits at long term, according to article 5, paragraph 1 (c), of the law," and of the interests due on such deposits; (c) To forward to the Federal tax administration, within a period of three months after the expiration of every fiscal year and on the form especially provided for, a statement of coupons, interests, and fractions of interests due on the securities and bank deposits, together with the calculation of the stamp taxes due thereon; (d) To make a payment on account to the Federal tax administration within a period of 15 days after the expiration of every quarter of a fiscal year, accompanied by a statement on the form specially provided for. This installment payment shall amount to approximately one-fourth of the stamp tax fixed for the fiscal year last expired. The Federal tax administration may, upon the demand of the taxpayer, authorize that these installments be calculated upon the basis of interests paid out during the preceding quarter. It may in such a case prolong the period of payment. The difference between the amount due for the entire year and the installment payments must be paid when the annual accounts are rendered. (See under (c).) In case the interests due on cash bonds, cash notes, and deposit certificates, as well as on long-term bank deposits, during the preceding fiscal year did not reach the total amount of 20,000 francs, or if the interests paid out during the last quarter did not total 5,000 francs, the quarterly installments need not be made. Art. 5, par. 1 (c), of the law reads as follows: "Art. 5. On the same basis as the coupons of Swiss bonds, are placed: Documents for the receipt, payment, transmission, crediting, or accounting of "(c) Interests on deposits with Swiss banks which are made for more than six months, or the payment of which can only be demanded after a recall notice of more than six months. "Exempt are the interests for deposits (credit balances) of the Confederation, of the Swiss Federal Railways, of Cantons, of communities (inhabitant, citizen, church, and school), and of institutions made independent by Federal law." |