Kathmandu: Finance Minister Dr Swarnim Wagle has officially clarified that the capital gains tax applicable to the sale of listed securities will now be treated as a final withholding tax, assuring investors that they will not face further tax liabilities on these transactions.
Speaking at a post-budget interaction program held at the Ministry of Finance, Dr Wagle reaffirmed the provision mentioned in point 79(ch) of the budget speech, which explicitly categorizes the tax on securities as a definitive settlement.
Under the updated fiscal policy, the government has revised the capital gains tax rates to differentiate between short-term and long-term holdings. Investors who dispose of their shares within a year of purchase will be subject to a 10 percent tax rate, while those who hold their securities for more than a year will pay a reduced rate of 7.5 percent. The Minister emphasized that this structure is designed to provide tax certainty, meaning investors can consider their tax obligations fulfilled once these amounts are deducted at the source.
Dr Wagle further elaborated on the filing requirements, stating that for the vast majority of investors whose income does not exceed 4 million rupees, this tax will be considered the final payment. This simplifies the process for smaller and medium-scale investors, as they are not required to consolidate these gains with their other income for further taxation.
However, he noted a specific threshold for high-net-worth individuals: those earning more than 4 million rupees annually are still required to submit a detailed income disclosure, even though the capital gains tax remains the primary mechanism for their stock market contributions.
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