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NEPSE Bonus Tax

Calculator Engine

Listed Companies: 5.0% Fixed WHT. Individuals are exempt from further taxation on this income.

Result Summary

Total Tax Withheld (5%)
Rs. 275
Final Withholding Tax (WHT)
Net Value Gain
Rs. 5,225
Gross Dividend
Rs. 5,500
Yield Retention Efficiency95.0%

Dividend Burden Audit

Gross GainRs. 5,500
Net In-Hand
Bonus Tax
Cash Tax

Regulatory Ledger

Bonus Share Tax (at Rs. 100)Rs. 250
Cash Dividend TaxRs. 25
Out-of-Pocket Warning

If cash dividend is less than bonus tax, you must manually deposit Rs. 0 to the company bank account.

Dividend Tax Matrix (Institutional)

Distribution TypeIndividual (5%)Institutional (15%)
Bonus SharesRs. 250Rs. 750
Cash DividendRs. 25Rs. 75

How to use

  • Units: Enter the total number of bonus shares declared by the company.
  • Face Value: Use Rs. 100 for equity shares and Rs. 10 for Mutual Fund units.
  • Cash: Input the gross cash dividend amount (before any deductions).
  • Audit: Review the 'Bonus Share Tax' to see if your cash dividend covers the liability.
  • Deposit: If the cash dividend is insufficient, use the 'Out-of-Pocket' alert to determine the deposit amount.

The Dividend Withholding Axiom

Official IRD formulation for NEPSE corporate action taxation (Income Tax Act 2058).

Total Tax = (BonusUnits × FaceValue × 0.05) + (GrossCash × 0.05)

Face Value: Statutory price used for tax base (usually Rs. 100)

WHT Rate: Fixed 5% for individual residents of Nepal

Tax Neutral: When Cash Dividend ≥ Bonus Tax Liability

Frequently Asked Questions

The standard rate for individual investors is 5% for both bonus shares and cash dividends.
No, bonus shares are taxed based on their Face Value (typically Rs. 100), not their secondary market price (LTP).
The investor must manually deposit the 5% tax amount to the company's bank account before bonus shares are released to their DEMAT.
Yes, for individual retail investors in Nepal, the 5% WHT is a final tax and does not need to be included in your annual income tax return.