Share Capital Gains Tax Nepal FY 2083/84

📅 Which fiscal year is this? Nepal’s current fiscal year is FY 2083/84, which began on Shrawan 1, 2083 (17 July 2026). Tax rates change with each Finance Act, and a great many Nepali tax pages online still display older figures. Every rate below states the year it belongs to — and where we could only verify an earlier year, we say so instead of pretending otherwise.

If you are working from 5% and 7.5%, you are using last year’s rates. The Finance Act 2083 raised capital gains tax on shares by 2.5 percentage points across the individual bands. Anyone calculating a sale from a page published before mid-2026 will get the wrong number.

The Rates for FY 2083/84

Who is selling	Holding period	FY 2083/84	Was
Resident natural person listed shares	Held more than 365 days	7.5%	5%
Resident natural person listed shares	Held 365 days or less	10%	7.5%
Resident entity	Listed shares	10%	10% — no change
Resident natural person	Unlisted shares	10%	10% — no change
Resident entity	Unlisted shares	15%	15% — no change
Non-resident	Listed or unlisted	25%	25% — no change

The 365-day line is worth real money. On a gain of Rs 5,00,000, selling at day 360 costs Rs 50,000 in tax; selling at day 370 costs Rs 37,500. That is Rs 12,500 for ten days of patience — and it is the single most actionable thing in this article.

Dividend tax did not change: 5%, deducted at source, final — the same for resident and non-resident recipients. Redistribution of already-taxed dividend carries no further TDS. Bonus-share capitalisation by a special industry, IT industry or tourism business for capacity expansion attracts nil dividend tax.

How It Is Collected

Capital gains on listed shares is withheld at source as advance tax at settlement, in the ordinary course of the transaction rather than something you calculate and pay separately.

We could not confirm the exact mechanics from a primary source. Broker and practitioner guides describe the withholding being handled at settlement through the clearing system; we did not reach a SEBON, NEPSE or CDSC page stating it. The practical position for you is unchanged — the tax comes off the proceeds — but if you need certainty on who deducts and when, ask your broker.

“Final Tax” Does Not Mean “No Filing” This Year

⚠ This is the change most investors will miss. Share capital gains has been treated as finally taxed if you elect not to file a return. But the Finance Act 2083 removed the rule that let a resident natural person skip filing merely because their only income was of this type.

So “my broker deducted it, I am done” is no longer a safe assumption. If you have other income, or if the filing obligation applies to you for any other reason, you still need to file — see our filing guide. Check your position with a practitioner before deciding not to file.

There is no minimum exemption threshold on share capital gains — the tax applies from the first rupee of gain.

🤝 Planning to sell shares and unsure what you will owe?

Tell us the holding period and rough gain and we will explain which rate applies and what the filing position is now. Digital Solution is not a broker or a tax firm — for a large disposal we will tell you to see a practitioner.

📲 WhatsApp: +977 9766597181 Our Services →

Two Points Where Sources Disagree

We are flagging these rather than picking a side, because getting them wrong changes your tax bill:

Cost base method. Weighted average cost, including buy-side charges, is what broker platforms and practitioner guides describe. We found no primary source fixing the method.
Bonus shares. It is commonly stated that bonus shares carry a zero cost base, making the entire proceeds a taxable gain. This is genuinely contested — several practitioner sources disagree. If a meaningful part of your holding is bonus shares, this is worth a conversation with a tax professional before you sell.

Practical Points Before You Sell

Check your holding period against the 365-day line before placing the order. The difference is 2.5 percentage points of the gain.
Know whether the shares are listed or unlisted — unlisted attracts 10% for an individual regardless of how long you held them.
Keep your purchase records, including charges. Your gain is proceeds minus cost base, and the cost base is only as good as your documentation.
Do not assume the deduction ends your obligations this year, given the filing change.
For a large or complex disposal — bonus shares, rights, inherited holdings — take advice before selling rather than after.

Frequently Asked Questions

What is the capital gains tax on shares in Nepal?

For a resident individual selling listed shares: 7.5% if held over 365 days, 10% if held 365 days or less. Entities pay 10% on listed shares.

Wasn’t it 5% and 7.5%?

Those were the FY 2082/83 rates. Both rose by 2.5 percentage points for FY 2083/84.

What about unlisted shares?

10% for a resident individual and 15% for a resident entity — unchanged.

Is there a tax-free threshold?

No. It applies from the first rupee of gain.

Is it a final tax?

It can be, if you elect not to file. But the exemption that let individuals skip filing on this basis alone was removed this year — check your position before assuming you need not file.

How is the cost base calculated?

Weighted average cost including buy-side charges is what practitioner sources describe; we found no primary source fixing the method.

How are bonus shares treated?

Commonly stated as zero cost base, but this is contested. Take advice if bonus shares form a significant part of your holding.

What is the dividend tax rate?

5%, withheld at source and final, for resident and non-resident recipients alike.

Sources

Published professional tax-rate summary for FY 2083/84, corroborated by independent reporting on the Finance Act 2083 changes.
Income Tax Act 2058 — Section 95Ka advance tax and the removal of the filing exemption.