Government imposes 25% windfall gain tax on ‘closeout’; Investors to get affected

Government of Nepal has decided that 25% windfall gain tax will be levied in case of closeout.

Previously, seller had to pay a fine of 20% to the buyer in case of shortage of security. However, as of Shrawan 1 , 2075, 25% tax will be deducted from the amount received by the buyer from the fine amount. The seller will not be entitled to pay any extra amount.

The new provision will be implemented as per the Clearing and Settlement Bylaws 2069. As per CDSC, the investors have paid Rs 150 to Rs 2 crore worth of fine in case of close out.