3. Personal Income Tax(“PIT”)

1.1.     General The Income Tax Act also levies income tax on individuals. The scope of the taxable income of individuals depends on the residential status of such individual as per the Income Tax Act.  Resident individuals are subject to tax on their worldwide income derived from employment, business or investment, while non-residents are only liable for income tax on their net income earned or sourced in Nepal. 1.2.     Residential Status An individual, irrespective of his Read more…

Excise Duty

1.1.     General Excise duty is administered and collected under the Excise Duty Act and Excise Regulation. Excise Duty is payable on the manufacture and import of certain excisable goods. Generally liquors, cigarettes, tobacco products, molasses etc. are excisable products as per the Excise Act. Excise duty is also applicable for cement, iron rod and certain other construction materials. No one is allowed to manufacture, import, sell and store excisable goods without obtaining a license. Similarly, Read more…

Customs Duty

1.1.     General Customs Duties are levied in accordance with the Customs Act. In normal cases, the importer states the cost, insurance & freight (“CIF”) value of the goods in customs declaration at the relevant customs office in the Nepal border and customs duty is accordingly levied on the goods being imported. The importer is responsible for providing a declaration that the description of the goods is true. If there is any doubt, the customs officer Read more…

Value Added Tax

1.1.     General VAT concerns goods and services and levied on sale, exchange, transfer, import, etc. of all goods and services apart from those specified by the law as exempt. This means that this tax encompasses all types of goods and services produced in or imported into the country apart from those listed as exempted by the law. VAT is imposed on different levels of value addition in the production and distribution process of goods and Read more…

1. Capital Gains Tax

1.1.     General Gains derived from the transfer of the Non Business Taxable Assets (“NBTA”) are taxed under the Income Tax Act at rates specific to the capital gains. The Income Tax Act defines NBTA as any land, building or security or interest in an entity excluding the following: Business assets[1], depreciable assets or stock in trade; A private residence of an individual that has been; Owned continuously for 10 years or more; Used as abode Read more…

Withholding Tax(“WHT”) a.k.a. Tax Deduction at Source (TDS)

1.1.     General The Income Tax Act also imposes an obligation on the resident companies to deduct WHT on certain payments in connection with the business. Such resident company, which is required to deduct WHT, is known as withholding agent. WHT is a final tax for the non-resident payees who do not file tax returns in Nepal. For resident payees, the WHT can either be: advance tax; or final tax WHT is treated as final tax Read more…

Nepal Taxation Overview

I. Introduction to the tax system in Nepal Taxes are imposed under various legislations specific to a particular kind of tax. The major tax legislations in Nepal are as follows: Income Tax Act 2002 VAT Act 1996 Excise Act 2002 Customs Act 1962 Finance Act of each year, which supplements the above mentioned legislations. Inland Revenue Department (“IRD”), a department under the Ministry of Finance (“MoF”) is entrusted with the role of administration of Income Read more…

Power of Attorney in Nepal

Attorney means that natural person who does any legal work or represents in the Court or office on behalf of other person. Attorney here is not to be confused with Attorney in US Legal system where Attorney means lawyer.   What is Power of Attorney? A power of attorney (“POA”) is a legal document which gives one person (called as the agent or attorney-in-fact) the power to act for another person (called as the principal). Read more…

Corporate Services

We shall walk you through every step in building your business. Incorporation: Get Registered! Start your company! We assist you in following all the documentation and legal process to start your company. We also help you sort out the most suitable legal form and the most efficient tax structure for your company. In addition, we offer: Drafting applications Drafting MoA and AoA Drafting Initial Compliance Documents Preparing documents for subsidiaries, branch offices and liaison offices Read more…

Immigration Services

Foreign visitors other than Indian nationals need valid passports to enter Nepal. Indian nationals need valid passports/travel document if the entry point is airport. We help entrepreneurs and foreign investors navigate Nepal’s immigration regulations when they want to explore immigration for themselves, their families or their staff. To see the details of our immigration services, please click to expand the appropriate link below. [Interested in our services? Please get in touch for a prompt response. Read more…