Property Transfer Taxes
Property transfer taxes are taxes on the transfer of real property (real estate, land improvements, machinery) from one person or firm to another. By disallowing deductions for prior purchases or investment costs, property transfer taxes represent a direct tax on capital and increase the cost of purchasing and disposing of property.
Countries receive a worse score if they have property transfer taxes.
Corporate Asset Taxes
Similar to wealth taxes, asset taxes are levied on the wealth, or assets, of a business.
Capital Duties
Capital duties are taxes on the issuance of shares of stock. Typically, countries either levy these taxes at very low rates or require a small, flat fee. These types of taxes increase the cost of capital, limit funds available for investment, and make it more difficult to form businesses.
Countries with capital duties score worse than countries without them.
Financial Transaction Taxes
A financial transaction tax is a levy on the sale or transfer of a financial asset. Financial transaction taxes take different forms in different countries.
Financial transaction taxes impose an additional layer of taxation on the purchase or sale of stocks. Markets run on efficiency, and capital needs to flow quickly to its most economically productive use. A financial transaction tax impedes this process.
The ITCI ranks countries with financial transaction taxes worse than countries without them.
