Investors in CEDB Hydropower are exempt from paying bonus taxes.

Taxes on bonus shares are not due by CEDB Hydropower Development Company investors. In a statement released today, the business said that it will cover the whole tax liability on the bonus shares.

The Income Tax Act 2058's Section 54(3) states that when a corporation distributes dividends from its dividend income that has been deducted from taxes, it is not required to pay taxes again. The same provision states that the bonus share tax that was passed at the previous general meeting will be paid with money made aside for it at the next general meeting.

The corporation had earlier announced that bonus shares would only be distributed at the rate of 11% (tax excluded) of the existing paid-up capital from the profits of the preceding two fiscal years. The cash dividend for tax reasons on the bonus shares was not mentioned anywhere, which infuriated the company's stockholders.