Kathmandu. The dividend tax levied while distributing bonus shares to the shareholders will now have to be paid by the corporate companies themselves by matching the dividend.
The Securities Board of Nepal (SEBON) has amended the Securities Issue and Allotment Directive-2074 BS to add this provision. Clause 40 of the Tenth Amendment Directive, 2082 has a provision to add sub-section (7) to the provision that the dividend tax levied while distributing bonus shares to the shareholders of all the corporate bodies registered with the Securities Board of Nepal should be paid by the concerned corporate body by adjusting it from the dividend.
Earlier, such a provision was not prescribed by the Securities Board. As a result, some companies have been paying dividend tax to the shareholders while distributing bonus shares. After this directive, the practice will end.
