Cabinet Approves New 3.5% and 5% Advance Tax Rates on Securities Gains

The government has approved new advance tax rates on gains arising from the disposal of securities listed with the Securities Board of Nepal (SEBON), with the rate determined based on the holding period of the securities.

The decision was taken by the Cabinet meeting held at the Office of the Prime Minister and Council of Ministers and was made public by Government Spokesperson and Education Minister Sasmit Pokharel on Wednesday.

Under the approved provision, a 3.5% capital gain tax will apply to gains earned by natural persons from securities held for more than 365 days. Meanwhile, gains from securities held for 365 days or less will be subject to a 5% capital gain tax.

The capital gain tax will be collected by the entity performing the functions of the securities market on gains received from the disposal of securities of entities listed with the Securities Board of Nepal.

The Cabinet also approved the Regulation on Simplification and Digitalisation of Government Decision-Making Procedures, 2083, along with the Cyclic Relief Fund Operation Procedure, 2083.

In addition, Khagendra Kattel, Ram Prasad Bhattarai and Baburam Dahal, officers of the Nepal Judicial Service, have been promoted to the gazetted special class. Kali Prasad Parajuli, Joint Secretary of the Nepal Administration Service, has also been promoted to the position of Secretary in the gazetted special class.

The government further approved an arrangement to grant power of attorney to a Saudi Arabian lawyer to facilitate legal proceedings related to insurance and compensation claims for Nepali citizens who died or were injured in Saudi Arabia.