Capital Gains Tax Cut Takes Effect: Investors Get Tax Relief

The Ministry of Finance has formally implemented revised capital gains tax (CGT) rates on gains from the sale of securities listed with the Securities Board of Nepal (SEBON) by resident natural persons. Under the new provision, investors will pay 3.75% CGT on gains from shares held for more than 365 days, while gains from shares held for 365 days or less will be taxed at 5%. The revised rates have become effective from today following their publication in the Nepal Gazette. The change was approved by the Council of Ministers under the authority granted by Sub-section (1) of Section 18 of the Economic Act, 2083. The revised tax structure reduces the applicable CGT compared with the previous rates and provides a lower tax rate for investors holding shares for more than one year.