Nepal’s stock market has been growing rapidly in recent years. With easy online access, many people are now investing in shares. But while most investors know they can make profit or loss in trading, many don’t realize that several fees and taxes are also charged on every trade.
If you trade shares in Nepal, you pay different types of charges — from broker commissions to capital gains tax. These small deductions can make a big difference in your real profit. Let’s take a look at what each charge means and how much you actually pay.
1. Broker Commission
Whenever you buy or sell shares, you have to go through a licensed stockbroker. There are 92 brokers currently operating in Nepal under NEPSE.
Each trade comes with a broker commission, which is the main fee paid by investors. The Securities Board of Nepal (SEBON) has fixed a commission rate that depends on the total transaction amount.
| Transaction Amount | Commission Rate |
|---|
| Up to Rs. 50,000 | 0.36% |
| Rs. 50,001 – Rs. 500,000 | 0.33% |
| Rs. 500,001 – Rs. 2,000,000 | 0.31% |
| Rs. 2,000,001 – Rs. 10,000,000 | 0.27% |
| Above Rs. 10,000,000 | 0.24% |
- Small trades are charged a higher percentage, while large trades are charged less.
- The commission is charged both when buying and when selling shares, so you pay twice.
For example:
- Ordinary shares (equity): Commission varies by transaction size.
- Bonds and mutual funds: Lower commission — between 0.02% and 0.10%.
Smaller investors often end up paying more in percentage, while bigger investors pay a lower rate.
2. SEBON Fee
Apart from the broker commission, there is also a SEBON fee — a small charge that goes to the Securities Board of Nepal.
It is 0.015% per transaction, and it applies when you buy and when you sell.
| Type | Rate |
|---|---|
| Each transaction | 0.015% |
For instance, if you buy shares worth NPR 100,000, a NPR 15 fee will be deducted. When you sell the same shares later, another NPR 15 will be charged.
It looks like a small amount, but for active traders, it adds up over time.
3. Depository (CDSC) Fee
When you trade shares, your ownership records are updated by CDSC (Central Depository System and Clearing Ltd.).
| Type | Rate |
|---|---|
| Per company, per day | Rs. 25 |
For this service, a depository fee of NPR 25 per company per day is charged. This amount is paid to keep your share ownership details accurate and up to date.
4. Capital Gains Tax
This is the most important charge for all investors. The government takes a Capital Gains Tax (CGT) on the profit you make when selling shares.
- If sold within one year: 7.5% tax
- If sold after one year: 5% tax
- Institutional investors: 10% tax
| Type of Sale | Tax Rate |
|---|
| Sold within one year | 7.5% |
| Sold after one year | 5% |
| Institutional investors | 10% |
You don’t have to pay this tax yourself — your broker automatically deducts it at the time of sale and deposits it to the Inland Revenue Department (IRD).
What Happens to Your Real Profit?
After paying all these fees and taxes, your actual profit becomes smaller than what you might expect.
Many new investors think they made a big profit, but after commissions and taxes are removed, the final amount is often much lower.
- Short-term trading means paying higher taxes.
- Large trades have smaller percentage fees but bigger total deductions.
- Long-term investment (holding for over a year) helps reduce tax to only 5%.
Conclusion
Before you start trading in Nepal’s stock market, it’s important to know all the costs involved — not just the price of shares. Understanding how commissions, SEBON fees, CDSC charges, and capital gains tax work helps you calculate your real earnings and make smarter investment decisions.
Even a small difference in fees can change your total return. So, always check how much you’re paying before you celebrate your trading profits.