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, 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 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 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], 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 Read more…

Corporate Compliance

Every Company incorporated in Nepal must comply with the on-going government rules and regulations after incorporation; all registered companies are required to comply with the various laws and provisions under the Companies Act 2006 as well as rules and directives made there under. Office of Company Registrar (OCR) under the Read more…