KATHMANDU: The government has revised the capital gains tax structure through the Finance Bill, a key component of the budget proposal for the fiscal year 2026/27.
According to the Finance Bill presented in the Federal Parliament on Friday, capital gains tax rates on both share trading and real estate transactions have been increased.
Under the new provision, profits earned from the sale of securities of listed companies will be subject to higher taxation. Investors who sell shares after holding them for more than one year will now pay a final tax of 7.5 percent on their gains, while those selling shares within one year will be taxed at 10 percent.
Previously, under the Income Tax Act, resident individual investors paid a 5 percent capital gains tax on shares held for up to 365 days and 7.5 percent on shares held for more than 365 days.
The Finance Bill has also amended the capital gains tax applicable to non-business taxable assets, including land and buildings. Under the previous arrangement, a 5 percent tax was levied on gains from property held for five years or more, while a 7.5 percent tax applied to property held for less than five years.
With the new amendment, the capital gains tax has been increased to 7.5 percent for property owned for more than five years and 10 percent for property held for less than five years.
Meanwhile, the government has proposed a tax exemption for certain land acquisitions related to development projects. According to the Appropriation Bill, capital gains tax will not be imposed on the amount up to the government-assessed value used for property registration when land is acquired for development purposes.
The revised tax measures are expected to increase government revenue while impacting investors and property owners engaged in share and real estate transactions.
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