Private Capital Gains Exemption: Who Qualifies and What You Get
Learn how to qualify for tax-free gains on your private asset sales and avoid being classified as a professional trader.
This scheme allows individuals to keep the full profit from selling certain private assets without paying tax on those gains.
Who it's for
This is designed for private individuals who are investing their own personal assets.
What you get
You can receive tax-free capital gains when you sell movable private assets, such as stocks or ETFs.
What it costs you
To benefit from this, you must not be classified as a "professional securities dealer" by the tax office.
The catch to know
The biggest risk is being reclassified as a professional investor. If you trade too frequently or use leverage (borrowed money) to fund your investments, the tax office may decide you are trading as a business, which would make your gains taxable.
How to apply
- Maintain clear records of all your private asset transactions.
- Monitor your trading frequency and use of leverage to ensure you remain within private investment bounds.
- Consult with a tax professional if your trading volume increases significantly.