Capital Gains Tax on NEPSE Shares in 2026

When you sell NEPSE shares for more than they cost you, part of the gain is withheld as capital gains tax. For individual investors the rate depends on two things: how long you held the shares, and the date you sell. In 2026 that rate changed twice in three months, so it is worth knowing exactly which rate applies to which sale. This guide covers individual (resident) investors; companies and other institutions are taxed differently and are not covered here.

The current rates

For sales on or after 22 September 2026, as published in the Nepal Gazette:

The tax is withheld when your sale settles, so you do not pay it separately, and for listed shares it is treated as a final tax for individuals from fiscal year 2083/84. You will see the amount on your contract note.

The rate is set by the date you sell

Because the rates changed during the year, the rate for a sale is the one in force on the day of the sale — not the fiscal year, and not the day you bought:

So two identical sales a week apart in September 2026 could be taxed at 10% and 5%. Nepal has changed this rate repeatedly over the years, so check for a newer notice before relying on any table, including this one.

How the holding period works

The holding period runs from when you acquired the shares to when you sell them. Hold for 365 days or less and the higher, short-term rate applies; hold for longer and the lower, long-term rate applies. If you bought the same company several times, different lots can fall on different sides of the 365-day line, so a single sale can mix both rates. Your contract note shows how it was split.

The lower long-term rate rewards patience: on the same gain, waiting past the 365th day cuts the tax by a quarter (3.75% against 5%).

A worked example

You buy 100 shares at Rs 500 on 5 January 2026. With commission, SEBON fee and DP charge you pay Rs 50,212.50, so your WACC is Rs 502.13.

You sell all 100 at Rs 600 on 30 October 2026 — 298 days later, so the short-term rate applies. The sale is Rs 60,000; after Rs 198 commission, Rs 9 SEBON fee and Rs 25 DP charge you receive Rs 59,768. Your gain over what you paid is about Rs 9,555.50, and 5% of that is about Rs 477.78.

Had you waited until 11 January 2027 — 371 days — and sold at the same price, the long-term rate of 3.75% would apply: about Rs 358.33 on the same gain, if the rates have not changed again by then.

Treat these as illustrations. The gain the tax is withheld on is worked out from your WACC by the system that settles your trade, and the figure on your contract note is the one that counts.

What if you sell at a loss?

Capital gains tax is a tax on gains. If a sale returns less than the shares cost you, there is no gain on that sale and nothing to withhold.

Bonus shares, right shares and dividends

• Bonus shares are taxed when they are issued, handled by the company at distribution; later, when you sell them, any gain over their recorded cost is subject to capital gains tax like any other share.
• Right shares carry the price you paid for them, usually Rs 100, as their cost.
• Cash dividends are not capital gains. Tax on them is deducted at source before the dividend reaches your bank account; see bonus shares, right shares and cash dividends.

Keeping it straight across a family

When a family holds shares across several DEMAT accounts, each person's sales are taxed separately, by their own holding periods. Tracking which lots are near the 365-day line, and what each sale would cost in tax, is the kind of thing a spreadsheet gets wrong. My Stocks applies the rate in force on each sale date, splits each holding into short-term and long-term lots, and estimates what you would owe if you sold today — per person.

From 22 September 2026: 5% if you held 365 days or less, 3.75% if longer, for individuals. The rate is the one in force on the day you sell. It has changed twice this year — check for newer notices before you plan around it.