Tax gain/loss harvesting are terms to describe a technique of tax management where stocks (or any security) may be sold at a loss in order to net off a chargeable capital gain with a capital loss. Any security sold by a Czech tax-payer which results in a capital gain is taxable unless held for over 3 years.

Securities sold for “tax loss harvesting” reasons can relatively easily be replaced by similar securities that enable the investor to retain a similar asset allocation and risk profile.