The taxation of financial annuities has always been a rather complex subject. Who wants to invest in the markets must understand, in fact, among other things, also how the capital earned on the Stock Exchange is taxed in addition to what taxes are paid on shares, government bonds and dividends.
Taxation of shares, government bonds (BTPs, BOTs, CCTs and CTZs)
To learn how to invest in the Stock Exchange is essential first of all understand how the Stock Exchange works. In addition to strategies to earn, however, you must also have clear taxation of shares, government bonds (BTPs, BOTs, CCTs and CTZs). This therefore requires knowledge of concepts such as capital gain, capital gain and capital loss as well as, from a tax point of view, the difference between investment returns. The complexity, in fact, derives from several factors. The first is that the assets to invest in are extremely different and heterogeneous in nature and yield. Another ballasting factor: the legislation on the subject is often unclear, especially for newbies. For this reason, it is good to know immediately what you are talking about.
What is the financial return
Taxation of stock market earnings is an element to be taken into account when drawing up an investment plan. In fact, the taxation on Stock Exchange earnings must be considered, in concrete terms, capital loss because it does not enter into the calculation of our financial income (but in those of the Inland Revenue) and even less in our investment portfolio.
In any case, in general terms, it can be said that the financial income is taxed according to its origin. And the latter is divided into two types: what comes from the investment itself (e.g. interest on government bonds or dividends) or the so-called capital gain.
What is capital gain and share capital gain?
Let’s proceed in order. What does capital gain mean? Capital gain is the difference between the sale price and the purchase price of a financial asset. The classic example is the one made with shares bought at a lower price than the sale price. The difference between these two operations is called capital gain or, in the specific case of company shares, capital gain of shares. In the case of a negative result, however, or a sale at a price lower than the purchase price, there is a capital loss.
Taxation of shares
Capital gains and interest or dividend shares are subject to the same type of taxation as financial annuities, i.e. a rate of 26%. Specifically, taxes on equities include the difference between the sale price net of commissions and the book price, i.e. the purchase value inclusive of commissions. On the other hand, taxation on government securities (BTPs, BOTs, CCTs and CTZs) is different. BTPs (and indexed BTPs), BOTs, CCTs and CTZs are taxed at 12.5%.