Government prepares to reduce capital gains tax, maximum rate set at 5 percent
The Ministry of Finance has announced a reduction in capital gains tax on share transactions while unveiling a 21-point action plan for capital market reforms. According to the plan, shares held for more than 365 days will be taxed at 3.75 percent, while those held for 365 days or less will be taxed at 5 percent.
Kathmandu — The government is set to reduce the capital gains tax. The Ministry of Finance has announced a reduction in capital gains tax on share transactions while unveiling a 21-point action plan for capital market reforms.
The matter is mentioned in point 20 of the 'Strengthening and Revival Action Plan, 2083' issued by the Ministry of Finance.
According to the action plan:
- If shares are held for more than 365 days, a tax of 3.75 percent will be levied on the profit amount.
- If shares are held for 365 days or less, a tax of 5 percent will be imposed on the profit amount.
Similarly, the action plan also announces a provision for adjusting losses from the delisting of listed shares. This is expected to encourage investors to participate further in the capital market.