Capital gains tax

Uncommon card · No. 199718

A capital gains tax (CGT) is the tax on profits realised on the sale of a non-inventory asset. The most common capital gains are realised from the sale of stocks, bonds, precious metals, real estate, and property. Not all countries impose a capital gains tax, and most have different rates of taxation for individuals compared to corporations. Countries that do not impose a capital gains tax include Bahrain, Barbados, the Cayman Islands, the Isle of Man, Jamaica, New Zealand, Singapore, and others. In some countries, such as New Zealand and Singapore, professional traders and those who trade frequently are taxed on such profits as a business income. Capital gains taxes are payable on most valuable items or assets sold at a profit. Antiques, shares, precious metals and second homes could be all subject to the tax if the profit is large enough. This lower boundary of profit is set by the government, and if the profit is lower than this limit it is tax-free. The profit is in most cases the difference...

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