Capital Gain Tax
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The concept of capital gain tax can be simply defined as a tax on the profits from different capital assets. The tax rate is generally more dependent upon the asset types, whether it is of short term or long-term. The long-term gains are taxed on the assets such as stocks, mutual funds, and bonds.
The practices of imposing the capital gains tax differs from one country to another. As it is directly imposed and collected by the authority on the one hand and there is no tax incidence, it comes under the category of direct taxation.
The concept of capital gain tax can be simply defined as a tax on the profits from different capital assets. The tax rate is generally more dependent upon the asset types, whether it is of short term or long-term. The long-term gains are taxed on the assets such as stocks, mutual funds, and bonds.
The practices of imposing the capital gains tax differs from one country to another. As it is directly imposed and collected by the authority on the one hand and there is no tax incidence, it comes under the category of direct taxation.
Various forms of capital gains tax in many countries are as follows:
In Australia the capital gains tax is a part of the income tax. Here such tax solely relies upon the realized capital gain.
In United Kingdom, the capital gain tax takes place but the gain limit on which the capital gain tax is imposed is generally higher.
On the contrary the practice of Income tax in United States is such that the capital gain tax is comparatively lower for the long-term gain and the net of income tax covers the capital gains of the individuals as well as corporations.
In Sweden the capital gain tax is imposed on the realized income.
