Capital gains tax on share transactions officially reduced, published in Nepal Gazette
The government has officially implemented the decision to reduce the capital gains tax on share transactions by publishing it in the Nepal Gazette. Now, long-term investors will pay 3.5 percent and short-term investors 5 percent capital gains tax.
Kathmandu. The reduced capital gains tax on share transactions has officially come into effect. The government has implemented the decision to reduce the capital gains tax by publishing it in the Nepal Gazette.
With this, for gains from the disposal of securities listed on the Nepal Securities Board, the securities market regulatory body has set the tax at 3.5 percent of the gain for resident natural persons holding the security for more than 365 days, and 5 percent of the gain for holdings of less than 365 days. This means that on profits from shares, long-term investors now need to pay only 3.5 percent and short-term investors 5 percent capital gains tax.
Earlier, through the budget of the current fiscal year, the capital gains tax on share transactions was increased, requiring long-term investors to pay 7.5 percent and short-term investors 10 percent. Before that, the capital gains tax was 5 percent and 7.5 percent, respectively.
After the budget increased the capital gains tax, share investors heavily criticized the government. Following that criticism, the Ministry of Finance reconsidered and decided to reduce the capital gains tax to 3.5 percent for long-term investors and 5 percent for short-term investors.