Is capital gains tax charged on profits from selling stocks?

Under the Income Tax Act, listed shares are subject to capital gains tax when transferred by major shareholders, or when transferred outside the securities market by persons who are not major shareholders.

Transfers of unlisted shares and of shares issued by foreign corporations or listed on foreign markets are also taxable. On the other hand, gains that minority shareholders who are not major shareholders make from trading listed shares on the securities market are not subject to capital gains tax (securities transaction tax applies separately).