Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The decision to impose tax on share premium amounts sold through further public offerings (FPOs) has been delayed, according to Prime Minister Pushpa Kamal Dahal’s directive to the interested parties. The prime minister has also requested that an indefinite resolution be sought for this problem.
The Confederation of Nepalese Industries (CNI) and Nepal Bankers’ Association called the prime minister’s attention to the effects of the taxation on the share premium amount, prompting him to issue the directive. .
Prime Minister Dahal vowed to advance the procedure to address this problem in the long run during the meeting with the business leaders. By using the FPO, the banks and financial institutions (BFIs) increased their paid-up capital in accordance with the central bank’s instruction.
FPO was not taxed during that time period, but the 58th Annual Report of the Office of the Auditor General stated that the premium paid for FPO shares should be subject to tax, concluding that such companies should be responsible for paying the tax.
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