Kathmandu, Sept 22: The government has officially lowered the capital gains tax on share transactions, with the revised rates coming into force from today following their publication in the Nepal Gazette.
The Ministry of Finance said the new rates apply to resident natural persons earning gains from the sale of securities listed with the Securities Board of Nepal (SEBON).
Under the revised provision, investors holding shares for more than 365 days will pay a 3.75% capital gains tax on their profits. Shares sold after being held for 365 days or less will attract a 5% tax.
The revised rates replace the previous capital gains tax structure, under which investors faced comparatively higher rates depending on the duration of their shareholding.
The reduction is expected to lower the tax burden on stock market investors, particularly those who maintain longer-term holdings.
The Ministry said the decision was taken by the Council of Ministers under the authority provided by Sub-section (1) of Section 18 of the Economic Act, 2083. Its publication in the Nepal Gazette has now given the new tax provisions formal legal effect.
