The Greek parliament has voted a new tax of 0.2 per cent on OTC securities lending transactions that settle in the local CSD, HELEX.
The amount will be calculated as 0.2 per cent of the value against payment trades, or 0.2 per cent of the amount derived from the stock closing price on trade date.
The tax will only be payable by the lender and will be applicable to all investors, including those that are exempt from taxes or duties. It will be passed on as an out-of-pocket expense in the same way as the stock sales tax. The removal of the stock sales tax and the implementation of a Capital Gains Tax (CGT) instead are still scheduled to be effective as from 1 April 2012.
Euroclear Bank noted that tax is not due for OTC securities lending activity between two accounts in its facility.
