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Dividends in Nepal explained: cash, bonus, tax and key dates.
Nepali companies distribute profits in two main ways: a cash dividend or a bonus share dividend. Both involve key dates you need to track, and cash dividends come with a 5% withholding tax. Here is the full picture.
5 min read · Updated · 25 Sep 2026
What is a cash dividend?
A cash dividend is a direct payment by the company to its shareholders out of its profit. It is expressed as an amount per share or as a percentage of the par value (face value) of the share. In Nepal, most companies announce dividends at their Annual General Meeting (AGM) and seek shareholder approval before disbursing.
What is a bonus share dividend?
Instead of paying cash, a company can issue new shares from its reserves. These are called bonus shares. The quantity of shares you hold increases, but the share price adjusts on the ex-bonus date so the total value of your position is the same at the moment of adjustment. For the full mechanics, read bonus shares vs rights shares.
Many Nepali companies announce a mixed dividend: part cash, part bonus. For example, "15% bonus and 2% cash" means you get 15 new shares for every 100 held plus a small cash payout.
The date that decides: book closure
In Nepal one date decides who gets a dividend: the book closure date, when the company closes its shareholder register. You must hold the shares before it.
- The last day to buy: NEPSE settles on T+2, so a purchase reaches your DEMAT two trading days after the trade. For each book closure, a last trading day to buy and still qualify is published; use it rather than counting days yourself, since holidays move it.
- The price after book closure: for a bonus or right share, NEPSE adjusts the price for the new shares, so it drops without anyone losing money. A cash dividend is not adjusted; the price moves with the market. Markets elsewhere use an “ex-dividend date”; in NEPSE the book closure date plays that part.
The Punji app shows upcoming book closures for stocks you hold in its daily brief.
Dividend tax: how the 5% works
Cash dividends paid by listed Nepali companies to individual investors are subject to a 5% final withholding tax. This is the standard rate in Nepal's income tax framework for dividend income from listed companies. The company deducts it at source and disburses the net amount. You do not file separately for this; the withholding is final.
Bonus shares are not taxed at the time of receipt. However, when you eventually sell those bonus shares, the lower WACC means a larger capital gain on which CGT applies. Taxes are complex; consult a tax professional for your specific situation.
When does the cash actually arrive?
After the AGM votes to approve the dividend and book closure processing is complete, the company disburses through the banking system. The cash goes to the bank account linked to your DEMAT account at the DP. The timeline varies by company; it is typically weeks to a few months after the AGM. If you have changed your bank account details, update them at your DP to avoid the payment missing you.
Tracking dividends in Punji
The Punji app shows upcoming book closures for stocks you hold, and its dividend calculator works out the cash you receive after the 5% tax. The portfolio tracker keeps your holdings and bonus shares in one place.
For what companies have actually declared, the NEPSE dividend history holds every declaration Punji tracks by Nepali fiscal year, with the cash and bonus split and the book closure date for each.
Sources
- Nepal Stock Exchange opens Monday to Friday under new government timings Sharesansar, 8 Apr 2026
- Nepal Stock Exchange notices NEPSE
Common questions
Answered plainly.
Cash dividends paid by listed Nepali companies to individual investors are subject to a 5% withholding tax. The company deducts this at source before disbursing the cash, so you receive the dividend net of tax. You do not separately file this tax; the deduction is final. Bonus share dividends are not taxed at the time of receipt, but they affect your cost basis for CGT when you eventually sell.
Book closure is the date a company closes its shareholder register to decide who receives a dividend, bonus or right shares. You must hold the shares before it. For each book closure, a last trading day to buy and still qualify is published; because NEPSE settles on T+2, it usually falls a couple of trading days before the book closure date.
Until the last trading day published for that book closure. NEPSE settles on T+2, so shares bought on the book closure date itself, or just before it, arrive too late to be on the register. Use the published date rather than counting days yourself: holidays move it.
After the AGM approves the dividend and book closure processing is complete, the company disburses the dividend through the banking system. The timing varies by company, but it is typically weeks to a few months after the AGM. The cash arrives directly in the bank account linked to your DEMAT.
After a bonus or right share book closure, NEPSE adjusts the share price for the new shares, so the price falls without anyone losing money: 100 shares at Rs 600 become 120 shares at Rs 500 after a 20% bonus. A cash dividend is not adjusted by NEPSE; the price moves with the market.
Read next
The rest of the guide
- NEPSE trading calendar and holidays explainedMonday to Friday trading since April 2026, which festivals close the exchange, and how to check live market status.
- How NEPSE trading works: orders, settlement and circuit breakersBroker account, limit orders, T+2 settlement, circuit breakers and how cash and shares actually move.
- NEPSE CGT rates in FY 2083/84: now 5% short-term and 3.75% long-termThe budget raised capital gains tax from 17 July 2026 and the government cut it to 5% and 3.75% from 22 September. The timeline, worked examples and what it means for holding.
- Margin, intraday and short selling in Nepal, explainedWhat each one means if you have never met it, which you can legally use on NEPSE today, and what each does to you when the price goes the wrong way.
See it in NEPSE data
The numbers behind the guide
- NEPSE share pricesEvery company: latest close, 52-week range and who traded it.
- NEPSE floorsheetBroker buying and selling for every company, last 30 days.
- Share calculatorCommission, SEBON, DP and capital gains tax on a sale.
- Dividend historyCash and bonus declarations by fiscal year.
- NEPSE sectorsEvery sector and its listed companies.
- NEPSE brokersEvery broker by number, with its TMS address.
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