Wealth Tax

Wealth tax, also called capital tax or net worth tax. It is a type of tax that imposed on the taxpayer's net worth.

Net worth = Total Asset - Total Liabilities

How is it being charged? / How the tax liability is being calculated?

(1) A percentage of the net worth 

(2) A percentage of the net worth exceeding a certain level 

      (e.g. 2% on wealth exceeding $5,000,000)