Tax rate and Fees in Nepali Stock Market
Nepal Stock Exchange Limited ( NEPSE ) is the only stock exchange of Nepal, founded in 1993. It is located in Singha Durbar Plaza , Kathmandu. Nepse is owned by Nepal Government, Nepal Rastra Bank, Employees provident fund and other shareholders of 58.66%, 14.60%, 10% and 16.74% respectively. The transaction currency is Nepalese Rupee. It is regulated by securities board of Nepal.
As per the data of March 16, 2021, the number of listed companies in Nepse is 285. Maximum companies are commercial banks, Hydro power companies, Insurances companies , finance, development banks, microfinance and others.
Market Timings
The equity market remain closed on Friday and Saturday.
Normal Trading: Sunday to Thursday
Market Open: 11: 00 am
Market Close: 3: 00 pm
Odd Lot trading: Friday
Market Open: 11: 00 am
Market Close: 3: 00 pm
Note: Only on Saturday odd lot trading is done.
Moreover: The exchange may also extend, advance or reduce trading hours when it deems fit necessary.
Circuit Breaker
There are 3 sFtages of index based circuit beaker of Nepse index movement of 4%, 5% and 6%.
In case of 4% movement either way, the market would be halt for 20 minutes if it happen at first hour of trading but if it takes place after 12pm , there would be no halt for trading.
Similarly, in case of 5% movement either way, the market would be halt for 40 minutes if it happens before 13:00pm but if it takes place after 13pm, there would be no halt for trading.
In Case of 6% movement either way, the trading will be halted for remaining time of trading.
Tax rate and Fees in Nepali Stock Market
Following are the charges and tax rates for doing transaction in Nepal Stock Exchange.
Buying stock
Brokerage for equity
Following are the broker commission
Transaction amount Broker commission (%)
Up to 50,000 0.4%
50,000 to 5,00,000 0.37%
5,00,000 to 20 lakhs 0.34%
20 lakhs to 1 crore 0.30%
Above 1 crore 0.27%
SEBON Charge : 0.015%
DP Charge: Rs. 25
Total Fee: Brokerage for equity + Sebon Charge + DP Charge
Brokerage for Mutual Fund
Trading amount Broker commission
Up to 5,00,000 0.15%
>5 lakhs to 50 lakhs 0.12%
Above 50 lakhs 0.10%
SEBON Charge : 0.015%
DP Charge: Rs. 25
Total Fee: Brokerage for mutual fund + Sebon Charge + DP Charge
Selling Stock
Broker commission: As mention above
SEBON Charge : 0.015%
DP Charge: Rs. 25
Capital Gain Tax (CGT)
If you make profit in secondary market than you have to tax which is termed as Capital gain Tax (CGT).
For individual
Sold before 1 year of buying : 7.5 %
Sold after 1 year of buying : 5%
For institutions :
CGT: 10%
For Example:
Calculation of cost per share while buying
If you buy share of 10 unit of Nabil Bank from secondary market at Rs.1200.
Total amount: 10*1200= Rs. 12,000.
Broker commission (0.4%): Rs.48
(Amount is less than 50,000)
SEBON Fee ( 0.015%) Rs. 1.8
DP charge : Rs: 25
Total cost: Rs. 12,074.8
Actual price per share: 1207.48
Calculation of Profit and capital Gain tax:
If you sell 10 unit for Rs. 1500.
Total Amount: 10*15 = Rs. 15000
Broker commission: (0.4%) = Rs. 60
(Amount is less than 50,000)
SEBON Fee (0.015% ) = Rs. 2.25
DP Charge: = Rs. 25
Net Amount: = Rs. 15000- Rs. 87.25= Rs. 14,912.75
Profit: = Rs. 14,912.75 – Rs. 1207.48 = Rs. 2837.95
Tax on Profit:
Note: old tax rule was Flat 5% on profit
New Tax rate:
a. For trader holding stock for less than 1 year:
= Rs. 2837.95*7.5% = Rs. 212.85
Net amount you get: Rs. 14,912.75 -212.85 = Rs. 14,699.90
b. For trader holing the stock for more than 1 year:
= Rs. 2837.95*5% = Rs. 141.90
Net amount you get : Rs. 14,912.75- 141.90 = Rs. 14,770.85
Dividend Tax
There is two types of dividend such as bonus share and cash dividend. In both cases, 5% tax is levied.
Other Charges:
Mero share annual fee: Rs 50
Demat Annual fee: Rs. 100
Hence, these are the Tax rate and Fees in Nepali Stock Market.
Other Important Links:
How to Calculate Capital Gain Charge in NEPSE: CLICK HERE
Frequently Asked Questions
What are the charges while buying shares in Nepal?
= Brokers commission, DP charge, Capital gain tax are the charges while buying shares in Nepal.
How much tax is charged on stocks?
Depend upon whether it is individual investor or institutional investors. Individual investor pay 5% and institutional investor pay 10% on Profit.
What are the charges while buying shares in Nepal?
What is the tax and charges on buying shares?
