Capital gains tax is a type of tax imposed on the profit made from selling certain assets. These assets could be things like stocks, real estate, or other investments. The tax is calculated based on the difference between the amount you sold the asset for and the amount you initially paid for it (also known as the "cost basis"). If the selling price is higher than the cost basis, you have a capital gain, and you may need to pay tax on that gain.
Capital gains taxes in the Philippines are currently applied to two types of assets: land and stocks not sold in the Philippine Stock Exchange.