[...]... under a separate capital gains tax or personal income tax; treatment (e.g ring-fencing) of losses; rollover provisions; treatment of gains on a taxpayer’s principal residence; treatment of the inflation component of capital gains; treatment of gains on domestic assets owned by non-residents; as well as transitional considerations A number of points raised in the TAXATION OF CAPITAL GAINS OF INDIVIDUALS: ... amount of additional tax revenue that could be expected from the introduction of a capital gains tax TAXATION OF CAPITAL GAINS OF INDIVIDUALS: POLICY CONSIDERATIONS AND APPROACHES – ISBN-92-64-02949-4 © OECD 2006 CHAPTER 1 POLICY CONSIDERATIONS AND APPROACHES IN OECD COUNTRIES – 33 Table 1.1 General Tax Treatment of Capital Gains / Losses of Individuals (as of 1 July 2004) Country PIT / CGT Capital gains. .. COUNTRIES Table 1.1 General Tax Treatment of Capital Gains / Losses of Individuals (as of 1 July 2004) Country PIT / CGT Capital gains allowance Treatment of gains on portfolio equity shares Treatment of gains on portfolio corporate bonds Treatment of gains on principal residence Treatment of gains on business assets (not held as part of trading stock) Belgium PIT, joint taxation No Speculative shares (purchased... Capital Gains / Losses of Individuals (as of 1 July 2004) Country PIT / CGT Capital gains allowance Treatment of gains on portfolio equity shares Treatment of gains on portfolio corporate bonds Treatment of gains on principal residence Treatment of gains on business assets (not held as part of trading stock) Czech Republic PIT, separate taxation No Shares held < 6 months: included in net taxable capital gains, ... of Working Party No 2 of the OECD Committee on Fiscal Affairs, investigating policy considerations influencing decisions over whether to tax capital gains of individuals, and in instances of taxation, alternative design features The exercise involved consideration of certain main findings in the public finance literature, including : ‘lock-in’ effects of capital gains taxation; effects of capital gains. .. lock-in incentives TAXATION OF CAPITAL GAINS OF INDIVIDUALS: POLICY CONSIDERATIONS AND APPROACHES – ISBN-92-64-02949-4 © OECD 2006 30 – CHAPTER 1: CENTRAL TAX POLICY CONSIDERATIONS IN THE TREATMENT OF CAPITAL GAINS The capital gains tax questionnaire asked countries to identify the central or primary considerations factoring into the policy decision of whether to tax capital gains of individuals, with... absence of comprehensive taxation of capital gains imposed under a country’s personal income tax or a separate capital gains tax, capital gains of households generally would not be taxed unless gains of a given type are targeted in the tax code, or the tax administration and/or tax courts rule that certain types of gains should be considered as ordinary income and subject to tax Where capital gains may... of capital gains taxation on the cost of capital are not considered a decisive factor in the government’s decision of whether to tax capital gains Capital Gains Tax Design Issues The questionnaire responses identify a number of considerations in the design of capital gains tax rules shaping their application and impact on the economy The design dimensions include: realization-based versus accrual taxation; ... of personal taxation of investment returns on the cost of capital, and discusses implications of various settings of personal tax rates on capital gains, dividends and interest, and corporate income tax rates By comparing cost of capital expressions under alternative sources of finance, possible effects of shareholder TAXATION OF CAPITAL GAINS OF INDIVIDUALS: POLICY CONSIDERATIONS AND APPROACHES – ISBN-92-64-02949-4... tables included in the report It is hoped that this information, along with the review of Member country assessments of policy considerations in the taxation of capital gains of individuals will provide analysts and tax policy-makers with useful insights into this interesting area of taxation TAXATION OF CAPITAL GAINS OF INDIVIDUALS: POLICY CONSIDERATIONS AND APPROACHES – ISBN-92-64-02949-4 © OECD 2006 . the fraction of excluded capital gains) the longer a capital gains asset is held. EXECUTIVE SUMMARY – 13 TAXATION OF CAPITAL GAINS OF INDIVIDUALS: . treatment of capital gains of individuals and alternative design features of capital gains tax provisions. The exercise involved a review of a number of issues