Inland Revenue Department directs NEPSE to collect capital gains tax on bonus/right share on par value

Inland Revenue Department has directed Nepal Stock Exchange to calculate capital gains tax on bonus and right shares by keeping paid-up value of share (i.e. par value) as the cost price effective today (Jestha 20, 2075). Before this, the cost of bonus and right shares was calculated as the average base price.

As per the notice published in NEPSE today, IRD issued such notice as per the provision in Income Tax Act 2058. Due to this, investors will now have to pay higher capital gains tax on their sales. Shareholders selling bonus/right shares of Soaltee Hotel will have to pay their tax keeping Rs 10 as the cost price while shareholders of other companies will have to pay their capital gains tax keeping Rs 100 as the cost price.