Your situation belongs to the first situation in capital income tax, which is explained as follows: 1. Capital income tax and its types Capital income tax (Capital Gains Tax) is also translated as "capital gains tax" or "capital appreciation tax".

Capital income tax is levied on the "gains" (i.e. capital gains) generated from the purchase and sale of investment products.

Capital gains are the difference between what was paid for the investment and the proceeds from selling the investment.

If the investment makes a profit, it will generate investment income; if the investment loses money, it will cause a capital loss.

In other words, capital income is the profit obtained from the purchase and sale of capital assets.

Capital assets include stocks, funds, bonds, real estate (such as real estate), precious metals (such as gold), coins, art and other collectibles.

Generally speaking, internationally, capital income tax can be roughly divided into four categories: (1) Securities capital income tax, including capital income tax on income from investment in securities such as stocks, funds, bonds, options, etc.

This article is referred to as "Securities Income Tax".

For example, in the UK, stock investment must pay three taxes: Stamp duty must be paid when buying stocks; capital income tax must be paid when selling; and shareholders must pay dividend tax when dividends are distributed.

(2) Real estate capital income tax, which is the capital income tax levied on real estate investment income.

This article is referred to as "property income tax".

(3) Capital income tax on precious metals, which is a capital income tax levied on income from investment in precious metals such as gold.

This article is referred to as “precious metal income tax”.

(4) Collectible capital income tax, including capital income tax levied on investment income from coins, artworks and other rare collectibles.

This article is referred to as “Collectibles Income Tax”.

2. Capital income tax is an income tax for the “rich” and “rich people”. In foreign countries, there are at least the following three major motivations and effects for levying capital income tax: (1) All types of income should be treated equally in terms of tax treatment.

In foreign countries, income tax must be paid on salary and non-salary income (interest, dividends, royalties, lottery winnings and other one-time income). Therefore, income from real estate speculation and stock speculation should also pay income tax.

This is purely a tax policy issue.

(2) Capital income tax has the most significant “equalizing the rich and the poor” effect.

Since capital income tax is directly levied on the net income from real estate speculation and stock speculation, the more you earn from real estate speculation or stock speculation, the more taxes you need to pay.

At the same time, since capital income tax generally sets a threshold or preferential conditions for exemption, and the differential tax rate for different grades is determined according to the "total annual household income" of real estate speculators or stock traders, therefore, the higher the total household income of the year.

, the higher the tax rate will be when taxing income from real estate speculation or stock speculation.

Obviously, capital income tax plays a very important role in “equalizing the rich and the poor”.

For example, the capital income tax on stock trading is only taxed on the "annual net income from stock trading". That is to say, the tax object of capital income tax is only the net profit after the annual "profit" and "loss" are offset. Therefore, the tax burden is actually

It is mainly concentrated on the "strong" large investors or institutions and profiteers in the stock market, and does not have much impact on ordinary small and medium investors.

(3) Capital income tax is conducive to encouraging long-term investment and curbing excessive speculation.

Capital income tax divides investment income into two types of capital income according to the length of the investment period: short-term capital income (such as stock holding period not exceeding 1 year; real estate holding period not exceeding 5 years) and long-term capital income

(For example, the stock holding period exceeds 1 year; the real estate holding period exceeds 5 years), and then set different levels of tax rates accordingly, and give preferential tax rates to long-term investments. This can encourage long-term investment and restrain the market.

The significant role of excessive speculation.

This is a powerful economic lever.

For example, the stock trading income tax sets differential tax rates based on the "family's total annual comprehensive income." The tax rate is super progressive, and the tax rate is set based on long-term income and short-term income. This can once again widen the tax rate gap, and at the same time set the threshold and tax rate.

Exemption amount.

That is to say, under this stock trading income tax system, the higher the total personal income for the year, the higher the stock trading income tax rate; the more people earn from stock trading, the higher the stock trading income tax rate they pay; the higher the short-term income from stock trading, the higher the stock trading income tax rate.

The higher the income tax rate for stock trading, the higher the income tax rate.

Therefore, under this tax rule, small and medium-sized investors generally pay less tax or are exempt from tax.