Nepse clears air over capital gain tax

Nepal Stock Exchange (Nespe) has clarified the confusion over the capital gain tax. Earlier, capital gain tax used to be calculated on the average of every closing price of a financial institution's issued bonus or rights shares. "Now onwards, capital gain tax will be calculated on the basis of base price," said Rewat Bahadur Karki, general manager of the sole secondary market.

However, the base price will be calculated after taking the average of book close price every time a company issues rights or bonus shares with the ratio of bonus and rights shares issued.

This rule is applicable to all listed companies. For companies that are not listed, the capital gain tax will be calculated according to the company registrar's office or Over the Counter (OTC) market. "The new rule will clear all confusion and help develop the secondary market," said Karki. The finance ministry gave the green signal to the new rule today.

Meanwhile, employees of the Nepse have announced a strike demanding more facilities and training. They have also published a handbill about their series of protest programmes starting from Tuesday.
Source:
Himalayan News Service