Government Proposes Major Tax Relief for Nepal’s Share Market Investors
Summary
The government is preparing major tax relief for Nepal’s share market investors by cutting capital gains tax rates and allowing losses to be offset against gains. The reform is intended to make the capital market more investment-friendly and tax investors only on net profits.
Key Points
- Long-term capital gains tax on listed shares would fall from 7.5 percent to 3.75 percent if held for more than 365 days.
- Short-term capital gains tax on shares held for 365 days or less would be reduced from 10 percent to 5 percent.
- The government plans to let investors offset losses from one share sale against profits from another within the same income year.
- Capital gains tax collected from natural persons would be treated as final tax, but the proposal still needs legal and system changes before implementation.
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