The buyer must file a return on Form CITT-1 with the New Jersey Division of Taxation. The Controlling Interest Transfer Tax is due on or before the last day of the month following the month in which the sale or transfer of the controlling interest is completed. If a series of transactions occurs over a period of six months in either of the two foregoing sale or transfer scenarios, the series of transactions is presumed to be a single sale or transfer and is subject to the Controlling Interest Transfer Tax. In the case of a sale or transfer of a controlling interest in an entity which, in addition to an interest in classified real property, also possesses, directly or indirectly, interests in other property (real or personal), a tax is due on the sale or transfer only if the equalized assessed value of the classified real property exceeds $1,000,000, in which event the buyer pays a tax equal to 1% of the equalized assessed value of the classified real property that is equal to the percentage of the ownership interest sold or transferred. It does not apply to vacant land, multi-family or industrial properties. Classified real property means Class 4A commercial property (e.g., office buildings and shopping centers). A "controlling interest" is defined to mean, in the case of a corporation, more than 50% of the total combined voting power of all classes of stock of the corporation and, in the case of a partnership, association, trust or other organization, more that 50% of the beneficial ownership of the commercial real property of that entity. Essentially, upon the sale or transfer of a controlling interest in an entity which possesses, directly or indirectly, an interest in "classified" real property for consideration in excess of $1,000,000, a tax is payable by the buyer of the controlling interest in the amount of 1% of the consideration. The Controlling Interest Transfer Tax was enacted in 2006. ![]() However, non-deed transfers of interests in certain entities that own real property may result in a Controlling Interest Transfer Tax being imposed on the buyer. Real Estate & Commercial Financing TransactionsĪt the recording of a deed for the transfer of real property in New Jersey, the Realty Transfer Fee is imposed on the seller and the Mansion Tax may be imposed on the buyer.Financial Incentives & Economic Development.Energy, Renewable Resources & Sustainable Development.Employee Benefits & Executive Compensation.Criminal Defense & Regulatory Compliance.Construction Contracting & Risk Management.Banking & Financial Services Litigation.Ten EU countries, including France, Germany, Italy, and Spain, are still interested in the common tax and negotiations on the design of that tax are ongoing. However, negotiations came to a halt due to resistance from several EU member states, and an EU-wide policy has not been adopted. In 2011, the European Union proposed an EU-wide FTT that would levy a 0.1 percent tax on the transfer of shares and bonds and a 0.01 percent tax on derivative contracts. Sources: BNY Mellon, “A Global View of Financial Transaction Taxes (FTT),” 2018, and Deloitte, “Tax guides and highlights,” 2019. *Belgium’s lower tax rate has been increased from 0.09% to 0.12% see PwC, “Belgium, Individual – Other taxes,” last updated July 1, 2019. European OECD Countries with a Financial Transaction Tax (FTT), as of 2019 For example, Switzerland levies a 0.15-0.30 percent stamp duty on the transfer of equities and bonds involving a Swiss securities dealer, while France implemented an FTT that taxes equity trades at 0.3 percent and high-frequency-trading at 0.01 percent. The FTTs differ significantly across countries. FTTs usually apply only to select financial instruments and often have varying tax rates depending on the asset type.īelgium, Finland, France, Ireland, Italy, Poland, Switzerland, and the United Kingdom currently levy a type of FTT. For example, if an investor sells an asset worth $1,000, they would be charged $1 on the transaction under a 0.1 percent FTT. Under an FTT, a percentage of the asset’s value is paid in taxes when it is traded. ![]() Today’s map shows which European OECD countries impose a type of FTT.įTTs are levied on the trade in financial instruments such as stocks, bonds, or derivatives. Since the 2008 financial crisis, financial transaction taxes (FTTs) have been debated as a potential instrument to address financial market instabilities and as a source for tax revenue.
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