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Capital gain tax |
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The capital gain tax refers to a tax that is charges on any kind of capital gains. The capital gains refer to the profits that have been realized from the sales of the assets which were at an earlier point of time purchased at a much lower rate. In terms of finance the word capital gain refers to the profit resulting from the sale or the exchange of a capital asset that has been bought a a pruce lesser than its sales price. The capital gains take place in case of the real assets as well as the financial assets. The real asswets include properties like buildingn, land premises etc. where as the finnacial assets include stocks as well as bonds that a person has.
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In case of the capital gains the most well known as well as significant realization of the capital gains take place in the fields of stocks and bonds. The sale opd precious metal, jewels as well as proeprties also yields a considerable amount of capital gains from time to time. The capital gains tax is levied on any kind of profit which is realized form the sale of the assets that were purchased sometimes ago for a much lesser amount of money. The kind of tax is not implemented in all the countries. However there are several countries that implement a capital gain tax. The rate of taxation in this kind of tax is also different depending on the countries. The rate of taxation might also vary for the individuals as well as for the corporations.
The Capital gain tax is not charged in Argentina, in case of Australia the Capital gain tax is only charged on realized capital gains. There is however two exceptions of this rule relating to the deffered interest debt. In Australia the tax can not be separated on its own and it creates a part of the income tax system of the country. The most significant exemption for the individuals in Australia in terms of the Capital gain tax is the family of of the individual. Normally the personal residential properties of an individual is left out of this tax but if the capital gain took place at a time when the individual was not residing at the property it will be taxable under the tax relating to the capital gain.
In Belgium as well as in Bulgaria there is no Capital gain tax. But in Brazil the capital gain tax amounts to 15% of the total profit thus realized. In Canada 50% of the capital gains are taxed and there are some exceptions as well. In china a flat rate of 20% of the capital gains are taxed. In th countries like United Kingdom and United Stated the Capital gain tax is changed for both corporations as well as for the individuals. In case of United States the rate of tax is lower or long term capital gain or the gains on assets that took place for more than one year before the sales. The short term capital gains on the other hand are taxed at the ordinary income tax rates.
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