Capital Gains Tax
Tax on profits from selling assets like stocks, property, or investments.
Capital gains tax (CGT) is levied on the profit realized from selling a capital asset — such as stocks, bonds, real estate, or business interests — for more than its purchase price. Many countries distinguish between short-term gains (assets held briefly) and long-term gains (held for a year or more), with long-term gains often taxed at lower rates. Some countries, like Singapore and Switzerland, have no capital gains tax on securities.
Related Terms
Profit from selling an asset held for a short period, often taxed at higher rates.
Profit from selling an asset held for a longer period, often taxed at preferential rates.
Selling investments at a loss to offset capital gains and reduce tax owed.