The government has amended the earlier provision related to capital gains tax through the Finance Bill, 2083, a subsidiary part of the Executive Budget Proposal of the upcoming fiscal year 2083/84.
According to the Finance Bill presented in the Federal Parliament on Friday, capital gains tax on share trading and real estate transactions has increased.
The government has introduced a provision of increasing the tax on the profit while selling securities of listed companies.
It stated that the tax on the profit will be final with a seven and a half percent tax on shares sold after more than one year and a ten percent tax on shares sold within one year.
Earlier, under the Income Tax Act, gains earned by Securities Board of Nepal (SEBON)-listed entities were taxed at five percent for owning within 365 days by a resident natural person and seven and a half percent for ownership of more than 365 days.
Similarly, the Finance Bill has amended the provision for non-business taxable assets (land and buildings) with a five percent capital gains tax if held for five years or more, and a seven and a half percent tax if held for less than five years.
Now, a capital gains tax of 7.5 percent will be applied to property held for more than five years and 10 percent for property held for less than five years.
The government through the Appropriation Bill has stated that capital gains tax will not be imposed on the amount up to the government-assessed value set for property registration while acquiring land for carrying out development projects.
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