Taxation Effect on changes on stakeholding of 50% or more in Nepal

June 1, 2023

Most of the companies registered in Nepal missed to comply with the taxation in the case of changes in their total stakeholding of more than 50%.

But need to make sure that such changes ( 50% or more) changes incurred in between the last 3 consecutive years. In such cases, sec 57 attracts as per

Nepal Income Tax Act 2058.

Make sure to include the below ownership while calculating such changes.

a. Ownership of One percentage or more out of total ownership

b. Ownership of less than one percentage in the case of related parties

Such financial year will be divided into 2 financial years i.e. before such event and after such event.

Statutory Audit shall be carried forward twice in such financial year where the treatment shall be done differently for the year Section 57 occurred.

Please email us at hello@rudolphservice.com for more information on changes in stakeholdings.

Disclaimer: Content published here shall not be used for practical purposes, Consult to a financial advisor or consultant for such planing and implementation.