What is the capital gains tax on shares in Nepal?
A resident individual pays 5% capital gains tax on the profit from selling listed shares held for 365 days or less, and 3.75% when the shares were held for more than 365 days. These rates apply since Asoj 2083 (September 2026). The broker deducts the tax when the sale settles, and it is final for individuals.
In Nepali: पुँजीगत लाभकर (punjigat labh kar, capital gains tax)
Current rates for individuals
The rates below are for resident natural persons selling securities listed with the Securities Board of Nepal (SEBON) through NEPSE. They were cut by a Council of Ministers decision under Section 18(1) of the Economic Act 2083, which took effect when it was published in the Nepal Gazette (see the ShareSansar report).
| Period | Held 365 days or less | Held more than 365 days |
|---|---|---|
| Since Asoj 2083 (September 2026) | 5% | 3.75% |
| Shrawan 1, 2083 to Asoj 2083 | 10% | 7.5% |
| FY 2082/83 | 7.5% | 5% |
Companies, mutual funds and other entities pay a different rate, which the cut above did not change. Tax rates are revised in budgets, so check the Inland Revenue Department or your broker before a large sale.
How the taxable gain is worked out
The taxable gain is what you receive from the sale after broker commission, the SEBON fee and the DP charge, minus what the shares cost you, including the commission and fees you paid when buying. For shares bought at different prices, the cost is the weighted average cost (WACC) recorded in MeroShare.
Example: you sell 100 shares bought at Rs. 500 for Rs. 600. After charges on both sides the share calculator puts the taxable gain at Rs. 9,768. Held for 365 days or less, the tax is Rs. 488.40 (5%); held longer, it is Rs. 366.30 (3.75%).
Who collects it and when
Capital gains tax on listed shares is withheld at source. When your sale settles, the broker deducts the tax from the amount payable to you and deposits it with the government, and the contract note shows the amount. For individuals this is a final tax: the gain is not added to your other income in an annual tax return.
Capital gains tax questions
What is the capital gains tax on shares in Nepal?
Since Asoj 2083 (September 2026), resident individuals pay 5% on the gain from selling shares listed with SEBON when the shares were held for 365 days or less, and 3.75% when held for more than 365 days. Companies and other entities pay a different rate.
Who deducts capital gains tax on shares?
The tax is deducted at source when the sale settles: your broker withholds it from the sale proceeds and deposits it with the government. For individuals it is a final tax, so you do not pay it again in an income tax return.
How is the holding period counted?
From the date you bought (or were allotted) the shares to the date you sell them. Keep the purchase source and WACC of your shares updated in MeroShare so the broker uses the right cost and purchase date.
Is capital gains tax charged if I sell at a loss?
No. Tax is charged only on a gain, after broker commission, the SEBON fee and the DP charge are taken into account. A sale at a loss pays no capital gains tax, though the transaction charges still apply.
Is dividend taxed separately from capital gains?
Yes. Dividends from listed companies have their own final withholding tax, deducted by the company before paying the cash dividend. Capital gains tax applies only when you sell shares.