|
|
| (One intermediate revision by the same user not shown) |
| Line 1: |
Line 1: |
| {{isdaprov|Tax}} and {{isdaprov|Stamp Tax}} are meant to be mutually exclusive and both refer to duties levied on payments under the swap {{isdaprov|Transaction}} itself and not under [[hedge]]s to it, so be careful when using them (especially in the context of [[delta-one]] [[synthetic equity swap]]s where the main [[stamp duty]] and [[capital gains tax|capital gain]]s issues accrue on {{eqderivprov|Hedge Position}}s. For those you might want to introduce a conceopt like {{eqderivprov|Local Tax}}es, or something similar. | | {{isda Tax summ|{{{1}}}}} |
| | |
| Here’s what the ISDA Users’ guide has to say about {{isdaprov|Tax}} and {{isdaprov|Stamp Tax}}, in a footnote on page 58.
| |
| :''“{{isdaprov|Tax}}” is defined in Section {{isdaprov|14}} as any tax, charge or other similar listed items, except a stamp, registration, documentation or similar tax (''i.e.'', a “{{isdaprov|Stamp Tax}}” as defined in Section {{isdaprov|14}} of the 2002 Agreement).''
| |
| ===Ok, so why leave out {{isdaprov|Stamp Tax}}?===
| |
| If you compare this definition with the equivalent definition of {{gmslaprov|Tax}} in the {{gmsla}} you might find yourself idly wondering about this strange little exception, missing from the GMSLA, for {{isdaprov|Stamp Tax}}. I know I did. Interestingly (or not, depending on your perspective) the drafters of the {{2002ma}} neglected to make use of the opportunity to use the definition of “{{isdaprov|Stamp Tax}}” in place of the less elegant “''stamp, registration, documentation or similar tax''”. But this might be the reason for the [[carve-out]]: {{isdaprov|Stamp Tax}} has its own little representation in Section {{isdaprov|4(e)}}.
| |
Latest revision as of 16:23, 13 September 2024
{{{{{1}}}|Tax}} and {{{{{1}}} |Stamp Tax}} are meant to be mutually exclusive and both refer to duties levied on payments under the swap {{{{{1}}} |Transaction}} itself and not under hedges to it, so be careful when using them (especially in the context of delta-one synthetic equity swaps where the main stamp duty and capital gains issues accrue on Hedge Positions. For those you might want to introduce a conceopt like Local Taxes, or something similar.
Here’s what the ISDA Users’ guide has to say about {{{{{1}}} |Tax}} and {{{{{1}}} |Stamp Tax}}, in a footnote on page 58.
- “{{{{{1}}} |Tax}}” is defined in Section {{{{{1}}} |14}} as any tax, charge or other similar listed items, except a stamp, registration, documentation or similar tax (i.e., a “{{{{{1}}} |Stamp Tax}}” as defined in Section {{{{{1}}} |14}} of the 2002 Agreement).