Capital Gains Tax Revised: 3.5% for Long-Term, 5% for Short-Term Holdings

The government has approved revised capital gains tax rates on gains from the disposal of securities listed with the Securities Board of Nepal (SEBON), with different rates based on the holding period. The decision was made by the Cabinet meeting held at the Office of the Prime Minister and Council of Ministers and was announced by Government Spokesperson and Education Minister Sasmit Pokharel on Wednesday. Under the approved provision, natural persons will be subject to a 3.5% capital gains tax on profits from securities held for more than 365 days. Meanwhile, gains from securities held for 365 days or less will attract a 5% capital gains tax. The tax will be collected by the entity performing the functions of the securities market on gains earned from the disposal of securities of companies listed with SEBON. The Cabinet also approved the Regulation on Simplification and Digitalisation of Government Decision-Making Procedures, 2083, and the Cyclic Relief Fund Operation Procedure, 2083. In addition, Khagendra Kattel, Ram Prasad Bhattarai, and Baburam Dahal of the Nepal Judicial Service were promoted to the gazetted special class. Kali Prasad Parajuli, Joint Secretary of the Nepal Administration Service, was also promoted to Secretary in the gazetted special class. The government further approved an arrangement to grant power of attorney to a Saudi Arabian lawyer to facilitate legal proceedings related to insurance and compensation claims involving Nepali citizens who died or were injured in Saudi Arabia.