Capital gains refer to the balance of income from the sale of stocks, bonds, real estate and other capital projects after deducting their book values. Some countries levy profits tax on capital gains, which is calculated according to the difference between the purchase price and the final selling price of capital projects and the prescribed tax rate. It is generally believed that the appreciation of capital projects takes several years to form. In order to prevent profits tax from affecting capital market investment, the tax rate is low, and the proportional tax rate is usually adopted.

Capital gain refers to the difference income obtained by buying assets at a low price and selling assets at a high price (such as stocks, bonds, precious metals and real estate).

Capital gain is a kind of capital income, which refers to the total income obtained by taxpayers through the sale of houses, machinery and equipment, stocks, bonds, goodwill, trademarks, patents and other capital projects, as well as the balance after deducting the purchase price.

Also explain: capital gains. The difference between buying and selling stocks and mutual funds. That is, the positive difference between the transfer value and the adjusted cost base price means that the price of the investment product is higher than the purchase price, that is, the actual income is obtained when it is realized. As an investment income. Before the sale of assets, even if capital appreciation can be seen, it can only be regarded as unrealized gains. In order to encourage investment in the domestic market, many countries give them the most favorable tax policies.