image

Capital Gains Tax

A capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.
For equities, an example of a popular and liquid asset, national and state legislation often has a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction.

Chinese regulators opted to delay the 3 per cent value-added tax for returns on assets under management until 2018, providing the industry with additional time to adjust. Photo: AP

China establishes 3 pc value-added tax on asset managers

China’s asset managers will face a new 3 per cent value-added tax (VAT) for returns on assets under management from January 1, 2018, enjoying another half-year reprieve on top of a 14-month grace period that expired at the end of June, according to a joint notice from the Ministry of Finance and