Netting gains against losses before the tax is worked out
Gains and losses from the same year are netted before the tax is calculated. Which kinds of income can be netted is set by each country, and stock losses usually cannot be taken off salary. With several accounts, filing is often what brings them together.
A $500,000 gain and a $200,000 loss leave $300,000 to be taxed.
Japan — In Japan a listed-share loss can be netted against dividends from the same year.
South Korea — In Korea gains and losses are combined within a year only among shares subject to capital gains tax (small shareholders' on-market sales of listed Korean shares are not taxed at all). Since 2020 domestic and foreign shares are combined too, but never with dividends, interest or property gains.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.