Trading on share market/stock market is being more popular day by day in Nepal. Many entered in share market after first phase of national-wide lockdown. Many investors are in the online trading platform for trading.

But, how well you know about the broker commissions, charges, SEBON fees and capital gain taxes charged on each transactions? If you are unaware of these commissions and fees, you may be losing even when the price you are selling is higher than buying.

For example, you purchased 10 shares at NPR 300 each paying total NPR 3037.45 and sell at NPR 307 each. For normal people, there is profit of NPR 70. Right? But, actually you will receive only NPR 3031.27 which is lesser than what you have paid.

Therefore, here we have collected data about Broker commission, charges SEBON fees and capital gain taxes charged in share/stock transaction in NEPSE trading.

Types of Charges on Stock Trading in Nepal

There are four different charges, fees and taxes involved in share transaction. And these are as follows:

  • Broker Commission
  • SEBON Fee
  • Depository Participant Charge (DP Charge)
  • Capital Gain Tax (Only on profit on sale)

Broker Commission

Broker commission is charged by stock brokers register under prevailing laws. Broker collects a certain percentage of transaction amount from both buyer and seller involved in that particular transaction. The rate of commission depends upon the range of transaction amount. And also the rate of commission and range of transactions differs on the basis of types of stocks they are transacting.

Broker Commission in Nepal on Trade of Equity Shares

Equity is the major stock traded in NEPSE. The followings are the ranges of transaction and respective broker commission rate in Nepal.

Range of Transaction Amount in NPRBroker Commission Rate
Up to 50,0000.40%
Above 50,000 to 500,0000.37%
Above 500,000 to 2,000,0000.34%
Above 2,000,000 to 10,000,0000.30%
Above 10,000,0000.27%
Broker Commission in Nepal on Trade of Equity of Shares

Broker Commission in Nepal on Trade of Government Bond in Nepal

Range of Transaction Amount in NPRBroker Commission Rate
Up to 500,0000.10%
Above 500,000 to 5,000,0000.05%
Above 5,000,0000.02%
Broker Commission in Nepal on Trade of Government Bond in Nepal

Broker Commission in Nepal on Trade of Mutual Fund

Range of Transaction Amount in NPRBroker Commission Rate
Up to 500,0000.15%
Above 500,000 to 5,000,0000.12%
Above 5,000,0000.10%
Broker Commission in Nepal on Trade of Mutual Fund

Broker Commission in Nepal on Trade of Other Stocks not Mentioned Above

Range of Transaction Amount in NPRBroker Commission Rate
Up to 50,0000.75%
Above 50,000 to 5,000,0000.60%
Above 5,000,0000.40%

So, in total how much does a broker made from each transaction? Out of the commission charged from buyer and seller, broker pays 20% of the commission to NEPSE and 0.6% of the commission to SEBON as regularity fee. After deduction of these fees, broker gets 79.6% of commission charged from traders.

SEBON Fee

In addition to broker commission, both buyer and seller have to pay SEBON fee on transaction amount. Currently, the rate of SEBON fee is 0.015% of traded amount.

Depository Participant Charge (DP Charge)

DP charge is a flat transaction fee and is irrespective of the numbers of stock sold. And, the fee charged is per transaction and not the volume sold.

The depository participant charge in Nepal is NPR 25 per transaction. DP charge has to be paid for buying and selling stocks.

Capital Gain Tax (Only if there is gain on sale)

If there is gain on sale of stock, an individual should pay 5% of such gain. This is treated as tax deduction at source (TDS). However, if the stock is traded by entity, the rate of TDS is 10% on gain.

The net gain = Sales price (no of stock x price per unite) – Fees and Commission – Purchase Cost.

These four are the main reason for reduction in the amount on sale of stocks.

Apart from this, you have to pay ASBA charges for bank while applying for IPO. This is different from trading fees and commission, but its better to know how much does your bank charges. Read – C-ASBA Charges Charged by Commercial Bank in Nepal.

Investors also Ask

How much do brokers charge to sell shares in Nepal?

The brokerage charges to buy or sell shares in Nepal is as follows.

Range of Transaction Amount in NPRBroker Commission Rate
Up to 50,0000.40%
Above 50,000 to 500,0000.37%
Above 500,000 to 2,000,0000.34%
Above 2,000,000 to 10,000,0000.30%
Above 10,000,0000.27%
Broker Commission in Nepal on Trade of Equity of Shares

How much is DP Charge in Nepal?

The Depository participant charge also called DP charge is NPR 25 per transaction regardless of the traded amount. Depository participate charge (DP Charge) is flat rate. It means this charge doesn’t change for broker, type of shares or volume of shares. In my opinion it is higher than expected for me.

What are the additional charges for buying shares in Nepal?

The additional charges for buying shares in Nepal are brokerage commission, SEBON fee and DP charge. However, you must need a Demat account, Meroshare Account and a Broker Account to buy shares online in Nepal which generally costs money.

How much is capital gain tax rate in Nepal for shares?

An individual is liable to pay 5% of net gain on sale of shares. While any institution (corporate body) involved in trading of shares have to pay 10% capital gain tax. There will be a revision in the tax from the beginning of fiscal year 2078/79. You can visit Share Calculator by ShareSansar for more detailed share price, commission and tax calculations.

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