Hang Seng Bank  
Frequently Asked Questions
Investments - Securities - Italian Financial Transaction Tax
Disclaimer: This FAQ aims to provide general information on Italian Financial Transaction Tax in respect of share transactions which will take effect from 1 March 2013. The content of this FAQ does not provide a comprehensive, complete or exhaustive coverage of the entire scope of Italian Financial Transaction Tax. In addition, the implementation and application of the Italian Financial Transactional Tax law may be subject to changes. Under no circumstances should this FAQ be construed as legal or tax advice.

Customers should seek independent professional advice if they have any query or further enquiry regarding the Italian Financial Transactional Tax law.
 
Q: Under what situation should I pay for Italian Financial Transaction Tax (“FTT”) and how the tax amount determined?

Q: Under what situation should I pay for Italian Financial Transaction Tax (“FTT”) and how the tax amount determined?
A:

To comply with the Italian FTT law, with effect from 1 March 2013, customers who trade shares issued by Italian resident companies (e.g. Prada S.p.A. (Stock Code: 1913) which listed on The Stock Exchange of Hong Kong Limited via our Bank are required to pay for the Italian FTT. The tax rate is 0.22%.

Italian FTT is calculated based on daily net increase of customer's beneficial holding of the same share at account level on each settlement day x weighted average purchase price x 0.22%. Example: Customer buy/sell the same shares “A” which is issued by Italian resident company on the same day via the same securities account:

• Buy 500 shares – Purchase price HKD50.00
• Buy 200 shares – Purchase price HKD55.00
• Sell 400 shares – Sell price HKD50.00

Calculation Method

Net buy quantity is 300 shares (Buy 700shares – Sell 400shares)

Weighted average purchase price is ((500x50)+(200x55)/700 = HKD51.43

Amount of Italian FTT payable is: 300shares x HKD51.43 x 0.22% = HKD33.94

The above tax rate and calculation method etc. of Italian FTT may be subject to changes or further clarification on the Italian FTT law. Such third party costs, fees and charges are subject to change without prior notice and will be determined by the Bank.