Capital gains tax

Tax on the profit you make when you sell

In detail

Sell above what you paid and the difference is a gain that can be taxed. Both the rate and the way it is worked out differ by country, and even within one country the account type can change it. While you simply hold and the price rises, nothing is taxed yet.

Example

Buy at $1 million and sell at $1.2 million and $200,000 becomes the taxable amount.

Differences by country

Japan — In Japan a listed-share gain is taxed separately at 20.315% (15% income tax, 0.315% reconstruction surtax, 5% local tax, as of 2026).

South Korea — In Korea small shareholders selling listed shares on the market pay no capital gains tax. Only large holders — 1% of a KOSPI company, 2% on KOSDAQ, 4% on KONEX, or ₩5 billion in one stock — are taxed. Gains on foreign shares, after a ₩2.5 million allowance shared with taxable domestic gains, are taxed at 22% including local tax (as of 2026).

Related terms

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.