First Business News Portal in English from Nepal
KATHMANDU: The government has raised tax rate on share trading through the budget for 2021-22 introduced today through ordinance.
The revised tax rate on share trading, which will come into effect from beginning of the new fiscal year, is expected to hit the short-term trading in the secondary market.
Previously, the body operating in the securities exchange market had to pay tax at the rate of 5 percent of the profit amount in case of individual, 10 percent of the profit tax in the case of resident bodies and 25 percent of the profit tax in the case of others.
However, the aforementioned provision has been changed through the budget for next fiscal year. Accordingly, short-term traders have to pay 7.5 percent tax.
“The ‘five percent of the gains amount in the case of a individual’ have been replaced with ‘five per cent of the gains amount in the case of individual for a period of more than 365 days and 7.5 percent of the gains amount for a period of less than 365 days’,” states the new provision.
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