Tax Updates 2010-11 Ammended

Income Tax Updates 2010-11 (2067-68)
Nepal Tax Facts

2009/10
For further clarifcation contact our Tax Partner Mr. Anil Joshi at
anil@kuber.com.np
1 of 22
Nepal
Income Tax Updates
2010-11
Kuber & Co.
C!artered "ccountants
T!#rbum $ar% &'anes!(or
)*+, -90 Kat!mandu
Tel, .9//-1-00121/2 001230/
Fax, .9//-1-1001230/
4ma#l, #n5o67uber.com.np
U89, (((.7uber.com.np
C*NT4NT: )a%e
Major Amendments in Income Tax Act !"# $%&
Tax 'alculation of (atural Persons "%)
Tax *ates for +ntities ,%-
Presumpti.e Taxation /!
0ithholdin1 Tax *ates //%/
" 2ear 'omparati.e Taxes 3 a4 +ntities
/$%/,
" 2ear 'omparati.e Taxes 3 b4 Indi.iduals
/#
" 2ear 'omparati.e Taxes 3 c4 0ithholdin1 Taxes
/-%
anil@kuber.com.np
2 of 22
1 $a;or "mendments #n Income Tax
"ct 203-
:ect#
on
C!an%e
#n
)re<#ous
)ro<#s#on
Current )ro<#s#on 8emar7s
5ch /
Tax 5lab
and *ates
for
Indi.idual
s
5in1le
'ouple
67ptin1
sec "!4
5in1le
'ouple
67ptin1 5ec
"!4
/8 5lab
9p to (*s /)!:!
!!
!!:!!! /)!:!!! !!:!!!
For
remunerat
ion income
onl;
/"8 5lab
up to (*s
/!!:!
!!
/!!:!!! /!!:!!! /!!:!!!
"8 5lab
up to (*s
<alan
ce
<alance
:&!:!!!
6i.e. )!!:!!/%
:"!!:!!!4
:!!:!!!
6i.e. $!!:!!/%
:"!!:!!!4
$"8 Tax
for next
Income
5lab 6(*s4
<alance
6i.e. abo.e
:"!!:!!!4
<alance
6i.e. Abo.e
:"!!:!!!4
// Tax 'oncessions
(o Pro.ision
Income from export of
1oods produced b;
manufacturin1 industries
,"8
of
applicable
tax rate
Income from construction
and operation of road:
brid1e: airport and tunnel
or income from in.estment
in tram or trolle; bus
)!8
of
applicable
tax rate
Income from manufacturin1
industr;: tourism ser.ice
industr; and h;dropo=er
1eneration: distribution and
transmission industr; listed
in the securit; exchan1e
6i.e. capital market4
-!8
of
applicable
tax rate
Industr; established in least
de.eloped areas producin1
brand;: =ine: cider from
fruits.
)!8
of
applicable
tax rate
anil@kuber.com.np
3 of 22
*o;alt; from export of
intellectual asset b; a
person
,"8
of
applicable
tax rate
Income from sale of
intellectual asset b; a
person throu1h transfer.
"!8
of
applicable
tax rate
anil@kuber.com.np
4 of 22
:ect#
on
C!an%e
#n
)re<#ous
)ro<#s#on
Current )ro<#s#on 8emar7s
//
Tax
'oncessio
ns
(o Pro.ision
Institution ha.in1 licensed to
exploration for petroleum or
natural 1as start commercial
operation before <5 !,"
chaitra
a. For the frst , ;ears
b. For next $ ;ears
%Tax
exempt
%"!8 of
the
applicable
tax rate
IT Industr;
established
=ithin IT Park
as specifed in
the >a?ette
Industr; established for
soft=are de.elopment: data
processin1: c;ber caf@:
di1ital mappin1 =ithin
Technolo1; Park: <iotech
Park and IT Park as specifed
in the >a?ette
"!8 of the
applicable
tax rate
)resumpt#<e Income Tax =:ect#on 1>11? o5 sc!edule 1@
(atural Persons =ho onl; ha.e business incomes =ith annual business
turno.er of (*s. :!!!:!!! and net income belo= (*s !!:!!! ma; chose to
pa; tax as belo= subject to that the person cannot claim medical tax credit or
ad.ance tax for TA5 deposited.
For 8es#dent Natural )ersons
*perat#n% +us#ness #n
)re<#ous
)ro<#s#on
Current
)ro<#s#on
8emar7s
Metropolitan and 5ub%Metropolitan
areas
(*s ":!!! (*s $:"!!
Tax per
annum
Municipalit; areas 6per annum4 (*s :"!! (*s :!!!
For other areas (*s /:"!! (*s /:"!
anil@kuber.com.np
5 of 22
2 Tax Calculat#on o5 Natural )ersons
8es#dent Natural )ersons
a? Tax 8ates 5or Natural )ersons >:c! 1 >1? o5
Income Tax "ct?
N8s
:lab (#se
Tax 8ate
For :#n%le
For Couple
>opt#n% 5or :ec
30?
8emar7s
Up to N)8
/8 Tax for /
st

Income 5lab
6on
*emuneration
income onl;4
/)!:!!!
6i.e. First /)!:!!!4
!!:!!!
6i.e. First !!:!!!4
If assessment is
done in the name
of Female
indi.idual for
emplo;ment
income: rebate of
/!8 of total tax
liabilit; is
a.ailable.
5ch / 6/4 6/4
/"8 Tax for
next Income
5lab
/!!:!!!
6i.e. /)!:!!/%
)!:!!!4
/!!:!!!
6i.e. !!:!!/%
$!!:!!!4
"8 Tax for
next Income
5lab
:&!:!!!
6i.e. )!!:!!/%
:"!!:!!!4
:!!:!!!
6i.e. $!!:!!/%
:"!!:!!!4
$"8 Tax for
the <alance
<alance
6i.e. abo.e
:"!!:!!!4
<alance
6i.e. Abo.e
:"!!:!!!4
b? Aeduct#ons and Fac#l#t#es 5or 8es#dent Natural
)ersons
)art#culars Aeduct#ble amount/ ad;ustments
Bife Insurance Premium Paid for
the resident (atural Person 5ch
/ 6/4 6/4
a4 (*s. !:!!!
b4 Actual Premium Paid
0hiche.er is the Bo=er is deductible
+mplo;ees =orkin1 in Aiplomatic
A1encies of (epal situated at
forei1n
countries 5ch / 6/4 6)4
,"8 of forei1n allo=ance is exempted
Incapacitated natural persons
5ch / 6/4 6/!4
the /8 income slab limit 6*s./:)!:!!!
for indi.idual and *s.:!!:!!! for
couples4 is increased b; additional
"!8
*emote Area <eneft Minimum exemption shall be
anil@kuber.com.np
6 of 22
5ch / 6/4 6"4
increased b; (*s "!:!!!: (*s &!:!!!:
(*s $!:!!!: (*s !:!!! and (*s
/!:!!! for the defned remote areas A:
<: ': A and + 65ec $# of IT *ules
!"-4
Additional limit for pension
income
5ch / 6/4 6-4
a4 the /8 income slab limit
6*s./:)!:!!! for indi.idual and
*s.:!!:!!! for couples4 is
increased b; additional "8: or:
b4 pension amount included in
income
0hiche.er is lo=er
anil@kuber.com.np
7 of 22
c? Tax Cred#ts 5or 8es#dent )ersons
$ed#cal Tax
Cred#t >:ec 31?
In case of appro.ed
medical expenses:
medical tax credit is
a.ailable to resident
natural persons as
deduction from tax
liabilities
The limit prescribed is
*s.,"! or /"8 of Appro.ed
medical expense or actual
appro.ed medical expense
incurred =hiche.er is lo=er.
An; unutili?ed credit can be
carried for=ard to next ;ear.
Fore#%n Tax
Cred#t
>:ec /1?
If forei1n income is
included in taxable
income of a resident
person
The forei1n tax paid can
either be deducted as
expense or tax liabilit; in
(epal can be reduced b;
such tax paid up to a.era1e
rate of tax applicable in
(epal: dependin1 on the
option of tax pa;ee
d? Tax on Non +us#ness C!ar%eable "ssets
Tax on Non
+us#ness
C!ar%eable
"ssets
:ec 93" >2? read
(#t! :c! 1 >1?
>1?
>ain from disposal of
(on <usiness
'har1eable Assets
are taxed at /!8 after
takin1 into
consideration /8
Income 5lab limit 6i.e
*s./)!:!!! for
indi.idual and
*s.!!:!!! for
couples4.
In case of land and buildin1s
=hich has been o=ned for
more than " ;ears: if
disposed oC: the tax rate of
"8 shall appl;. >ain from
(on%<usiness 'har1eable
Assets includes
a4 1ain from sale of
shares of companies:
b) 1ain from sale of
land and buildin1 o=ned
and resided for less than
/! ;ears and disposed for
more than (*s.$ Mio
e? :pec#al Tax 8ates 5or Natural )ersons
)art#culars Tax 8ates
For incomes earned from operatin1 special
industries
5ch / 6/4 6/&4
20B
For slab (!ere 23B #s
appl#cable
For incomes earned from export business
5ch / 6/4 6/"4
13B
For slab (!ere 23B #s
anil@kuber.com.np
8 of 22
appl#cable
5? Non-8es#dent Natural )erson
:ect#on )art#culars 8ates
5ch / 6/4
6#4
Income earned from normal transactions "8
anil@kuber.com.np
9 of 22
1 Tax 8ates 5or 4nt#t#es
:ect#on )art#culars
202/-2-
>2010-11?
84:IA4NT 8ates
6/4 of
5chedul
e /
Firm: 'ompanies 6+ntities4 "8
64 of
5chedul
e /
<ank: Financial Institutions: or >eneral
Insurance <usiness and +ntit; en1a1ed in
petroleum operations under the /-#$ (epal
Petroleum Act
$!8
64 of
5chedul
e /
+ntities producin1 ci1arettes: che=in1 tobacco:
alcohol: beer
$!8
6$4 of
5chedul
e /
An; +ntit; operatin1 as special Industr; in
=hole ;ear as per 5ection// of Income Tax Act
!"#
!8
6$4 of
5chedul
e /
5pecial Industr;: +ntit; en1a1ed in the
construction and operation of road: brid1e:
tunnel: rope%=a;: or D;in1 brid1e: operation of
an; trolle; bus: or train
!8
6$4 of
5chedul
e /
'o%operati.e 5ociet; other than those
established under 'o%operati.e Act: !&#
conductin1 specifed transactions
!8
6$46a4
of
5chedul
e /
Income earned from +xport business 6from
(epalEs resources4
!8
6&4 of
5chedul
e /
Projects in.ol.ed in <uildin1 and operatin1
public infrastructure to be transferred to >7(
and those en1a1ed >eneration: transmission: or
distribution of electricit;
!8
Non 8es#dent
6)4 of
5chedul
e /
Tax on repatriation of income b; a Forei1n
Permanent establishment of a non res#dent
"8
anil@kuber.com.np
10 of 22
6,4 of
5chedul
e /
Income earned b; pro.idin1 shippin1: air transport
i.e. a person en1a1ed in (epal in an; road: air:
=ater or chartered transport ser.ices other than
transhipment in (epal for an; of the follo=in1
ser.ices
The carria1e of passen1er =ho embark from
=ithin (epal.
The ser.ices of mail: li.estock or other mo.able
tan1ible assets that are embarked from the
territor; of (epal.
or Income earned b; pro.idin1 telecommunication
ser.ices: posta1e: satellite: optical fbre project
throu1h an apparatusF eGuipment established in
(epal irrespecti.e of place of ori1in of messa1e
"8 of
>ross
*eceipts
6no
deduction
is allo=ed4
Pro.iso
of 6,4
of
5chedul
e /
Income earned pro.idin1 shippin1: air transport or
telecommunication ser.ices b; means of transport
or eGuipment =hich has the disembarkation at
forei1n countr; =hile embarkation is not from
(epal.
8 of
>ross
*eceipts
6no
deduction
is allo=ed4
For the purpose of the provisions of 2(7) of
Schedule 1 the non resident person means a
resident entity that is a part of a group of
associated entities whose head ofice is
situated outside Nepal
anil@kuber.com.np
11 of 22
:ect#on )art#culars
202/-2-
>2010-11?
Normal 8ates
// 6/4 A1ricultural income 6other than income
made b; a compan;: frm: partnership or an
entit;4
+xempt
// 6$4
6a4
5pecial industr; H IT industr; pro.idin1
direct emplo;ment to $!! or more (epali
citi?ens throu1hout the ;ear
-!8 of
applicable tax
rate
// 6$4
6a4
5pecial industries =hich directl; emplo;
/!! or more (epalese nationals all the
;ear round or =hich pro.ide direct
emplo;ment to more than /!! (epalese
nationals includin1 $$ percent =omen:
dalits 6the do=ntrodden4 or the
handicapped.
#!8 of
applicable tax
rate
// 6$4
6b4
5pecial industr; operatin1 in follo=in1
re1ions ha.e follo=in1 tax rates for frst /!
;earsI
% Jer; unde.eloped re1ion
% 9n de.eloped re1ion
% 9nder de.eloped re1ion
6as amended4
/!8 of
applicable tax
rate
!8 of
applicable tax
rate
$!8 of
applicable tax
rate
// 6$A4
6a4
Industries established in 5pecial +conomic
Kone situated in mountainous districts and
hill; districts as prescribed b; (epal >o.t
% For the frst /! ;ears
% After such period
%Tax +xempt
%"!8of the
applicable tax
rate
// 6$A4
6b4
Industries established in 5pecial +conomic
Kone situated in other re1ions
% For the frst " ;ears
% After such period
%Tax +xempt
%"!8 of the
applicable tax
rate
// 6$A4
6c4
Ai.idend Tax exemption on industries
established in 5pecial economic Kone:
a. For the frst " ;ears
b. For next $ ;ears
%Tax exempt
%"!8 of the
anil@kuber.com.np
12 of 22
applicable tax
rate
// 6$A4
6d4
Income from Forei1n technolo1; and
mana1ement ser.ice fee and ro;alt; of
Forei1n in.estor in 5pecial +conomic Kone
"!8 of the
applicable tax
rate
anil@kuber.com.np
13 of 22
:ect#on )art#culars
202/-2-
>2010-11?
// 6$<4 Institution ha.in1 licensed to exploration
for petroleum or natural 1as start
commercial operation before <5 !,"
chaitra
b. For the frst , ;ears of operation
b. For next $ ;ears
%Tax exempt
%"!8 of the
applicable tax
rate
// 6$'4 Industr; established for soft=are
de.elopment: data processin1: c;ber caf@:
di1ital mappin1 =ithin Technolo1; Park:
<iotech Park and IT Park as specifed in the
>o.t >a?ette
"!8 of the
applicable tax
rate
// 6$A4 Income from commerciall; 6i4 >eneratin1
or 6ii4 >eneratin1 and Transmittin1 or 6iii4
>eneratin1: Transmittin1 and Aistribution
of electricit; b; !," 'haitra 6April !/-4
a. For frst , ;ears of operation
b. For next $ ;ears
This facilit; shall be applicable for
1eneratin1 electricit; from solar: =ind
and 7r1anic materials.
%a. Tax exempt
%b."!8 of
applicable tax
rate
// 6$+4 Income from export of 1oods produced b;
manufacturin1 industries
,"8
of applicable
tax rate
// 6$F4 Income from construction and operation of
road: brid1e: airport and tunnel or income
from in.estment in tram or trolle; bus
)!8
of applicable
tax rate
// 6$>4 Income from manufacturin1 industr;:
tourism ser.ice industr; and h;dropo=er
1eneration: distribution and transmission
industr; listed in the securit; exchan1e 6i.e.
capital market4
-!8
of applicable
tax rate
// 6$L4 Industr; established in .er; unde.eloped
areas producin1 brand;: =ine: cider from
fruits.
)!8
of applicable
tax rate
//6$I4 *o;alt; income from export of Intellectual
Propert;
,"8
of applicable
tax rate
// 6$J4 Income from sale b; =a; of transfer of
Intellectual Propert;
"!8
of applicable
tax rate
anil@kuber.com.np
14 of 22
// A *ates and tax benefts pre.alent at the time
of a1reement =ith >7( for infrastructure
de.elopment =ill be applicable for the
entire period co.ered b; such a1reement
anil@kuber.com.np
15 of 22
0 )resumpt#<e Taxat#on
a) Income Tax on *(ners o5 publ#c <e!#cles =:ect#on
1>/? o5 sc!edule 1@
T'pe o5 Ce!#cle Tax >N8s?
Minibus: Minitruck: Truck and <us 6per .ehicle per
annum4
/:"!!
'ar: Jeep: Jan: Micro bus 6per .ehicle per annum4 /:!!
Three 0heeler: Auto *iksha= and Tempo 6per
.ehicle per annum4
#"!
Tractor and Po=er Tiller 6per .ehicle per annum4 ,"!
b? Income Tax 5or :mall Tax )a'ers =:ect#on 1>11? o5
sc!edule 1@
(atural Persons =ho onl; ha.e business incomes =ith annual
business turno.er of (*s. :!!!:!!! and net income belo= (*s
!!:!!! ma; chose to pa; tax as belo= subject to that the person
cannot claim medical tax credit or ad.ance tax for TA5 deposited.
For 8es#dent Natural )ersons *perat#n%
+us#ness #n
Tax >per
annum?
N8s
Metropolitan and 5ub%Metropolitan areas $:"!!
Municipalit; areas 6per annum4 :!!!
For other areas /:"!
anil@kuber.com.np
16 of 22
3 D#t!!old#n% Tax 8ates
:ec T'pe o5 pa'ment
D#t!!old#n%
8ate
202//2-
>2010-11?
D#t!!old#n
% t'pe
#,
*emuneration
6+mplo;erEs liabilit; to deduct tax4
6*efer Part of this doc applicable to
natural person4
As per rate
mentioned in
schedule / of
the Act
F#nal tax
6if
emplo;ment
is the
income
onl;4
## 6/4
'ommission: 5ales <onus: Interest:
*o;alt;: 5er.ice Fee: (atural *esources
6ha.in1 source in (epal4
/" 8
"d<ance
Tax
## 6/4 Interest paid to tax exempt entit; /" 8 F#nal Tax
Pro.is
o to
##6/4
Pa;ment from Appro.ed *etirement Fund
and retirement pa;ment from >o.ernment
uFs )" 6/4 6h4
" 8 F#nal Tax
Pro.is
o to
##6/4
'ommission paid b; the *esident +mplo;er
'ompan; to (on *esident Person
" 8 F#nal Tax
Pro.is
o to
##6/4
Airplane lease pa;ments /! 8
"d<ance
Tax
Pro.is
o to
##6/4
5er.ice Fee to the ser.ice pro.ider
re1istered in JAT
/." 8
"d<ance
Tax
Pro.is
o to
##6/4
Pa;ment for *ent /! 8
"d<ance
Tax
Pro.is
o to
##6/4
*ent Paid to natural person: other than
commercial: for Band or <uildin1 and ftted
eGuipments
/! 8 F#nal Tax
## 64
Ai.idend: (et income from in.estment
insurance and 9nappro.ed *etirement
Fund
" 8 F#nal tax
## 6$4
Interest ha.in1 source in (epal not related
to business and paid to natural person b;
bank or fnancial institution: listed
compan; and those that ha.e issued
debenture.
" 8 F#nal tax
## 6&4
6a4
An; pa;ment made b; resident natural
person other than pa;ment in relation to
business or rent
(IB -
anil@kuber.com.np
17 of 22
## 6&4
6a/4
Pa;ment of ser.ice fee for settin1 exam
paper: for checkin1 ans=er paper and for a
=ritin1 articles in ne=spaper to a natural
person
(IB %
## 6&4
6b4
Interest to resident <anks and Financial
Institutions
(IB %
## 6&4
6c4
Tax +xempt Pa;ments and Pa;ments
co.ered b; 5ec #, 6*emuneration TA5
dealt separatel; under 5ec #,4
(IB %
anil@kuber.com.np
18 of 22
:ec T'pe o5 pa'ment
D#t!!old#n%
8ate
202//2-
>2010-11?
D#t!!old#n
% t'pe
## 6&4
6d4
Inter%re1ionalFinterchan1e fee pa;able to
the bank issuin1 credit card
(IB %
## 6&4
6e4
Pa;ment of Fee or Interest to Forei1n >o.t.
or International Institution b; (epal >o.t.
under conclusion of an; a1reement
bet=een (epal >o.t and Forei1n >o.t. or
International Institution in fa.our of (epal
>o.t.
(IB %
## 6&4
6f4
Interest Pa;ment up to (*s /!:!!! from
*ural <ased Micro 'redit Institution: *ural
Ae.elopment <ank: Postal 5a.in1 <ank and
'o!perati.e Institution uFs //64.
(IB %
## A 0indfall >ain Tax " 8 F#nal Tax
#- 6/4
Pa;ment of a contractual amount in excess
of (*s. "!:!!!.!! 6the same pa;ment
under same contract =ithin last /! da;s to
be considered4
/." 8
"d<ance
Tax
#- 6$4
6a4
Pa;ment of a contractual amount to non
resident person
%Airplane *epairs and 7ther 'ontract.
" 8 F#nal Tax
#- 6$4
6b4
Pa;ment of 1eneral insurance premium to
non%resident Insurance 'ompan;
/." 8
"d<ance
Tax
-"A
6/4
Proft and >ain from transaction of
commodit; future market 6Market operator
to deduct from the trader4
/! 8
"d<ance
Tax
-" A
646a4
>ain on disposal of securities listed =ith
5ecurities +xchan1e % entit; conductin1
securit; transactions =ithhold tax at the
rateI
%*esident (atural Person
%7thers
/! 8
/" 8
"d<ance
Tax
-"A
64 6b4
Pa;ment of >ain from the Aisposal of
5ecurities not listed =ith 5ecurit;
+xchan1e % entit; =hose securities ha.e
been disposed should =ithhold tax at the
rateI
%*esident (atural Person
%7thers
/! 8
/" 8
"d<ance
Tax
anil@kuber.com.np
19 of 22
-"A
6$46b4
'apital 1ain on disposal of land and
buildin1 6non%business assets4 of a natural
person 3 Band *e.enue Aepartment to
=ithhold tax at the time of re1istration
transfer
%7=nership of more than " ;ears
%7=nership of less than " ;ears
"8
/!8
"d<ance
Tax
anil@kuber.com.np
20 of 22
C*$)"8"TIC4 T"E 8"T4: F*8 9":T FIC4 F4"8:
" Tax 8ates 5or 4nt#t#es
:ect#on )art#culars
2021-
20
>2002-
0/?
2020-
23
>200/-
0-?
2023-
22
>200--
09?
2022-
2/
>2009-
10?
202/-
2-
>2010-
11?
/6/$4 of
5chedule
/
5mall and lo= income
entrepreneurs
% MetropolitanF5ub
MetroI
% Municipalit;
% 7thers
6!./"
Mio
income
H /."
Mio
turno.e
r4
:!!!
/:"!!
/:!!!
6!./"
Mio
income
H /."
Mio
turno.e
r4
:!!!
/:"!!
/:!!!
6!./"
Mio
income
H /."
Mio
turno.e
r4
:!!!
/:"!!
/:!!!
6!.
Mio
income
H Mio
turno.e
r4
":!!!
:"!!
/:"!!
6!. Mio
income
H Mio
turno.er
4
$:"!!
:!!!
/:"!
6/4 of
5chedule
/
Firm: 'ompanies
6+ntities4
"8 "8 "8 "8 "8
64 of
5chedule
/
<ank: Financial
Institutions: or >eneral
Insurance <usiness
and +ntit; en1a1ed in
petroleum operations
under the /-#$ (epal
Petroleum Act
$!8 $!8 $!8 $!8 $!8
64 of
5chedule
/
+ntities producin1
ci1arettes: che=in1
tobacco: alcohol: beer
$!8 $!8 $!8 $!8 $!8
6$4 of
5chedule
/
An; +ntit; operatin1
as special Industr; in
=hole ;ear as per
5ection// of Income
Tax Act !"#
!8 !8 !8 !8 !8
6$4 of
5chedule
/
5pecial Industr;: +ntit;
en1a1ed in the
construction of road:
brid1e: tunnel: rope%
=a;: or D;in1 brid1e:
operation of an; trolle;
bus: or train
!8 !8 !8 !8 !8
anil@kuber.com.np
21 of 22
6$4 of
5chedule
/
'o%operati.e 5ociet;
other than those
established under 'o%
operati.e Act: !&#
conductin1 specifed
transactions
% !8 !8 !8 !8
6$46a4 of
5chedule
/
Income earned from
+xport business 6from
(epalEs resources4
!8 !8 !8 !8 !8
6&4 of
5chedule
/
Projects in.ol.ed in
<uildin1 and operatin1
public infrastructure to
be transferred to >7(
and those en1a1ed
>eneration:
transmission: or
distribution of
electricit;
!8 !8 !8 !8 !8
:ect#on )art#culars
2021-
20
>2002-
0/?
2020-
23
>200/-
0-?
2023-
22
>200--
09?
2022-
2/
>2009-
10?
202/-
2-
>2010-
11?
6)4 of
5chedule
/
Tax on repatriation
of income b; a
Forei1n Permanent
establishment of a
non res#dent
% /!8 "8 "8 "8
6,4 of
5chedule
/
Income earned b;
pro.idin1 shippin1: air
transport i.e. a person
en1a1ed in (epal in
an; road: air: =ater or
chartered transport
ser.ices other than
transhipment in (epal
for an; of the follo=in1
ser.ices
The carria1e of
passen1er =ho
embark from =ithin
(epal.
The ser.ices of
mail: li.estock or
other mo.able
tan1ible assets that
are embarked from
the territor; of
"8 on
turno.e
r
6no
deducti
on
allo=ed4
"8 on
turno.e
r
6no
deducti
on
allo=ed4
"8 on
turno.e
r
6no
deducti
on
allo=ed4
"8 on
turno.e
r
6no
deducti
on
allo=ed4
"8 on
turno.er
6no
deductio
n
allo=ed4
anil@kuber.com.np
22 of 22
(epal.
or Income earned b;
pro.idin1
telecommunication
ser.ices: posta1e:
satellite: optical fbre
project throu1h an
apparatusF eGuipment
established in (epal
irrespecti.e of place of
ori1in of messa1e
6,4 of
5chedule
/
Income earned
pro.idin1 shippin1: air
transport or
telecommunication
ser.ices b; means of
transport or eGuipment
=hich has the
disembarkation at
forei1n countr; =hile
embarkation is not
from (epal.
8 on
turno.e
r
6no
deducti
on
allo=ed4
8 on
turno.e
r
6no
deducti
on
allo=ed4
8 on
turno.e
r
6no
deducti
on
allo=ed4
8 on
turno.e
r
6no
deducti
on
allo=ed4
8 on
turno.er
6no
deductio
n
allo=ed4
5chedule
/ 6"4 +state of a deceased
resident indi.idual or
Trust of an
incapacitated resident
indi.idual
As
defned
in the
case of
indi.idu
al and
couple
As
defned
in the
case of
indi.idu
al and
couple
As
defned
in the
case of
indi.idu
al and
couple
As
defned
in the
case of
indi.idu
al and
couple
As
defned
in the
case of
indi.idu
al and
couple
anil@kuber.com.np
23 of 22
:ect#on Particulars
!)$%)&
6!!)%
!,4
!)&%)"
6!!,%
!#4
!)"%))
6!!#%
!-4
!))%),
6!!-%
/!4
!),%)#
6!/!%
//4
//6$46a4 5pecial industr; 65ec
//4
-!8 of
the
applica
ble tax
rate
6i.e.
/#84
6pro.idi
n1
direct
emplo;
ment to
)!! or
more
(epali4
-!8 of
the
applica
ble tax
rate
6i.e.
/#84
6pro.idi
n1
direct
emplo;
ment to
)!! or
more
(epali4
-!8 of
applica
ble tax
rate
6pro.idi
n1
direct
emplo;
ment to
"!! or
more
(epali4
Includin
1 IT
Industr
;
-!8 of
applicab
le tax
rate
6 pro.idi
n1 direct
emplo;
ment to
$!! or
more
(epali4
Includin
1 IT
Industr;
-!8 of
applicab
le tax
rate
6pro.idi
n1
direct
emplo;
ment to
$!! or
more
(epali4
Includin
1 IT
Industr;
//6$46a4 5pecial industries
=hich directl; emplo;
/!! or more
(epalese nationals all
the ;ear round or
=hich pro.ide direct
emplo;ment to more
than /!! (epalese
nationals includin1 $$
percent =omen: dalits
6the do=ntrodden4 or
the handicapped.
#!8 of
the
applicab
le tax
rate
6i.e./)84
#!8 of
the
applicab
le tax
rate
6i.e./)8
4
//6$46b4 5pecial industr;
operatin1 in
follo=in1 re1ions
ha.e follo=in1 tax
rates for frst /!
;earsI
% Jer;
unde.eloped
re1ion
% 9n de.eloped
re1ion
% 9nder de.eloped
,!8 of
applicab
le tax
rate 6i.e.
/&84
,"8 of
applicab
le tax
rate 6i.e.
/"84
#!8 of
applicab
le tax
,!8 of
applicab
le tax
rate 6i.e.
/&84
,"8 of
applicab
le tax
rate 6i.e.
/"84
#!8 of
applicab
le tax
,!8 of
applicab
le tax
rate 6i.e.
/&84
,"8 of
applicab
le tax
rate 6i.e.
/"84
#!8 of
applicab
le tax
"!8 of
applicabl
e tax
rate 6i.e.
/!84
,!8 of
applicabl
e tax
rate 6i.e.
/&84
,"8 of
applicabl
e tax
/!8
of
applicab
le tax
rate
!8
of
applicab
le tax
rate
$!8 of
applicab
le tax
anil@kuber.com.np
24 of 22
re1ion
rate 6i.e.
/)84
rate 6i.e.
/)84
rate 6i.e.
/)84
rate 6i.e.
/"84
rate
//6$A4
6a4
Industries established
in 5pecial +conomic
Kone situated in
mountainous districts
and hill; districts
prescribed b; (epal
>o.ernment
% For the frst /!
;ears
% After such period
% Tax
+xempt
% "!8 of
the
applicab
le tax
rate
% Tax
+xempt
% "!8 of
the
applicab
le tax
rate
% Tax
+xempt
% "!8of
the
applicab
le tax
rate
% Tax
+xempt
% "!8of
the
applicabl
e tax
rate
% Tax
+xempt
% "!8of
the
applicab
le tax
rate
anil@kuber.com.np
25 of 22
:N )art#culars 2021-
20
>2002-
0/?
2020-
23
>200/-
0-?
2023-
22
>200--
09?
2022-
2/
>2009-
10?
202/-
2-
>2010-
11?
//6$A4
6b4
Industries established
in 5pecial +conomic
Kone situated in other
re1ions
% For the frst "
;ears
% After such period
(o
Pro.isio
n
% Tax
+xempt
% "!8 of
the
applicab
le tax
rate
% Tax
+xempt
% "!8 of
the
applicab
le tax
rate
% Tax
+xempt
% "!8 of
the
applicab
le tax
rate
% Tax
+xempt
% "!8 of
the
applicab
le tax
rate
//6$A4
6c4
Ai.idend Tax
exemption on
industries
established in
5pecial economic
Kone:
a. For the frst "
;ears
b. For next $
;ears
(o
Pro.isio
n
(o
Pro.isio
n
(o
Pro.isio
n
a.Tax
exempt
b. "!8
a.Tax
exempt
b. "!8
//6$A4
6d4
Income from Forei1n
Technolo1; and
Mana1ement 5er.ice
Fee and ro;alt; of
Forei1n in.estor in
5pecial +conomic
Kone
(o
Pro.isio
n
Tax
+xempt
"!8 of
the
applicab
le tax
rate
Tax
+xempt
"!8 of
the
applicab
le tax
rate
"!8 of
the
applicab
le tax
rate
"!8 of
the
applicab
le tax
rate
// 6$<4 Institution ha.in1
licensed to
exploration for
petroleum or natural
1as start commercial
operation before <5
!," chaitra
a. For the frst ,
;ears of
operation
b. For next $
;ears
% % % %
%Tax
exempt
%"!8 of
the
applica
ble tax
rate
//6$'4 Industr;
established for
,"8 of
the
applicab
,"8 of
the
applicab
,"8 of
the
applicab
,"8 of
the
applicab
"!8 of
the
applicab
anil@kuber.com.np
26 of 22
soft=are
de.elopment: data
processin1: c;ber
caf@: di1ital
mappin1 =ithin
Technolo1; Park:
<iotech Park and
IT Park as specifed
in the >a?ette
le tax
rate
le tax
rate
le tax
rate
le tax
rate
le tax
rate
//
6$A4
Income from
commerciall; 6i4
>eneratin1 or 6ii4
>eneratin1 and
Transmittin1 or 6iii4
>eneratin1:
Transmittin1 and
Aistribution of
electricit; b; !,"
'haitra
% % %
anil@kuber.com.np
27 of 22
:N )art#culars 2021-
20
>2002-
0/?
2020-
23
>200/-
0-?
2023-22
>200--
09?
2022-
2/
>2009-
10?
202/-
2-
>2010-
11?
6April !/-4
a. For frst , ;ears of
operation
b.For next $ ;ears
This facilit; shall be
applicable for
1eneratin1
electricit;
from solar:
=ind and
or1anic
materials.
a. Tax
exempt
b. "!8
of
applicab
le tax
rate
a. Tax
exempt
b. "!8
of
applicab
le tax
rate
// 6$+4 Income from export
of 1oods produced b;
manufacturin1
industries
% % % %
," 8 of
applicab
le tax
rate
// 6$F4 Income from
construction H
operation of road:
brid1e: airport H
tunnel or income
from in.estment in
tram or trolle; bus.
% % % %
)! 8 of
applicab
le tax
rate
// 6$>4 Income from
manufacturin1
industr;: tourism
ser.ice industr; H
h;dropo=er
1eneration:
distribution and
transmission industr;
listed in the securit;
exchan1e 6i.e. capital
market4
% % % %
-!8
of
applicab
le tax
rate
//
6$L4
Industr; established
in .er; unde.eloped
areas producin1
brand;: =ine: cider
from fruits.
% % % %
)!8
of
applica
ble tax
rate
//
6$I4
*o;alt; from export
of intellectual
% % % % ,"8
of
anil@kuber.com.np
28 of 22
Propert; applica
ble tax
rate
//
6$J4
Income from sale b;
=a; of transfer of
intellectual
Propert;
% % % %
"!8
of
applica
ble tax
rate
"
Additional Tax /."8 /."8
0ithdra
=n
0ithdra
=n
0ithdra
=n
anil@kuber.com.np
29 of 22
'7MPA*ATIJ+ F7* BA5T FIJ+ 2+A*5
+ +as#c Tax G 8es#dent Natural )erson >:c!edule 1 :ub
sect#on 1 2 1 & 0?
:ect#o
n
)art#culars
2021/2
0
>02-
0/?
2020/2
3
>0/-
0-?
2023/2
2
>0--
09?
2022/2
/
>09-
10?
202//2
-
>2010-
11?
/ For Indi.idual 6natural person4
First (*s /!!:!!!
First (*s //":!!!
First (*s /)!:!!!
!8
!8 !8
/8 /8
For 'ouple optin1 5ec "!
First (*s /":!!!
First (*s /&!:!!!
First (*s !!:!!!
!8
!8 !8
/8 /8
Landicapped Indi.idual
First (*s /"!:!!!
First (*s /,:"!!
First (*s &!:!!!
!8
!8 !8
/8 /8
Landicapped 'ouple optin1 5ec
"/
First (*s /#,:!!!
First (*s /!:!!!
First (*s $!!:!!!
!8
!8 !8
/8 /8
(ext *s. ,":!!!
(ext *s. #":!!!
(ext *s. /!!:!!!
/"8 %
/"8
%
/"8
/"8 /"8
$ <alance "8 "8 "8 "8
(ext amount up to (*s.
:"!!:!!!
% % % % "8
& <alance % % % % $"8
" 5pecial char1es /."8
additi
onal
/."8
additi
onal
% % %
anil@kuber.com.np
30 of 22
for
"8
slab
for
"8
slab
C*$)"8"TIC4 F*8 9":T FIC4 F4"8:
C D#t!!old#n% Tax 8ates
:ec
T'pe o5 pa'ment
D#t!!old#
n% 8ate
2021/20
>2002-
0/?
D#t!!old#
n% 8ate
2020/23
>200/-
0-?
D#t!!old#
n% 8ate
2023/22
>200--
09?
D#t!!old#
n% 8ate
2022/2/
>2009-
10?
D#t!!old#
n% 8ate
202//2-
>2010-
11?
#,
*emuneration
6+mplo;erEs liabilit; to
deduct tax =ill not
reduce e.en if the
remuneration net out b;
reason4
F#nal tax >#5
emplo'ment #s t!e
onl' #ncome source?
As per
rate
mentione
d in
schedule
/ of the
Act
6*efer
Part of
this doc4
As per
rate
mentione
d in
schedule
/ of the
Act
6*efer
Part of
this doc4
As per
rate
mentione
d in
schedule
/ of the
Act
6*efer
Part of
this doc4
As per
rate
mentione
d in
schedule
/ of the
Act
6*efer
Part of
this doc4
As per
rate
mentione
d in
schedule
/ of the
Act
6*efer
Part of
this doc4
##6/
4
'ommission: 5ales
<onus: Interest: *o;alt;:
5er.ice Fee: (atural
*esources 6ha.in1
source in (epal4
"d<ance tax
% /"8 /"8 /"8 /"8
##6/
4
Interest ha.in1 source
in (epal paid to a tax%
exempted or1anisation
F#nal tax
/"8 /"8 /"8 /"8 /"8
##6/
4
Pa;ment of interest to
all others
"d<ance tax
/"8 /" 8 /"8 /"8 /"8
##6/
4
Pa;ment from
Appro.ed *etirement
Fund and retirement
pa;ment from
>o.ernment uFs )" 6/4
6h4
F#nal Tax
% % % "8 "8
##6/
4
'ommission paid b;
resident emplo;er
% % % "8 "8
anil@kuber.com.np
31 of 22
compan; to (on
*esident person
F#nal Tax
##6/
4
Airplane lease
pa;ments.
"d<ance tax
/!8 /!8 /!8 /!8 /!8
##
6/4
5er.ice Fee to the
ser.ice pro.ider
re1istered in JAT
"d<ance tax
% /."8 /."8 /."8 /."8
##6/
4
Pa;ment of rent
"d<ance tax
/"8 /"8 /!8 /!8 /!8
##6/
4
Pa;ment for natural
resources ha.in1 source
in (epal
"d<ance tax
/"8 /" 8 /"8 /"8 /"8
:ec
T'pe o5 pa'ment
D#t!!old#n%
8ate2021/20
>2002-
0/?
D#t!!old#
n% 8ate
2020/23
>200/-
0-?
D#t!!old#
n% 8ate
2023/22
>200--
09?
D#t!!old#
n% 8ate
2022/2/
>2009-
10?
D#t!!old#
n% 8ate
202//2-
>2010-
11?
##6/
4
*ent Paid to natural
person: other than
commercial: for Band
or <uildin1 and ftted
eGuipments
F#nal tax
/"8 /"8 /!8 /!8 /!8
##6/
4
*o;alt;: fees
"d<ance tax
/"8 /"8 /"8 /"8 /"8
##6/
4
Pa;ment of Meetin1
allo=ances:
periodicFpart time
teachin1 to natural
person
F#nal tax
/"8 /"8 /"8 /"8 /"8
##6/
4
Pa;ment of ser.ice fee
in all other cases
"d<ance tax
/"8 /"8 /"8 /"8 /"8
##6
4
Ai.idend: (et income
from in.estment
insurance and
"8 "8 "8 "8 "8
anil@kuber.com.np
32 of 22
9nappro.ed *etirement
Fund
F#nal tax
##6
4
Ai.idend to non%resident
person
F#nal Tax
% /!8 % % %
##6
4
Pa;ment of Personal
Accident 'laim
F#nal tax
% "8 % % %
##6$
4
Interest ha.in1 source
in (epal not related to
business and paid to
natural person b; bank
or fnancial compan; or
an entit; and compan;
that has issued
debenture.
F#nal tax
)8 "8 "8 "8 "8
##6&
4
6a/4
Pa;ment of ser.ice fee
for settin1 exam paper:
for checkin1 ans=er
paper and for a =ritin1
up in ne=spaper to a
natural person
(IB (IB (IB (IB (IB
##6&
4 6b4
Interest to resident
fnancial institutions
(IB (IB (IB (IB (IB
anil@kuber.com.np
33 of 22
:ec
T'pe o5 pa'ment
D#t!!old#n%
8ate 2021/20
>2002-0/?
D#t!!old#
n% 8ate
2020/23
>200/-
0-?
D#t!!old#
n% 8ate
2023/22
>200--
09?
D#t!!old#
n% 8ate
2022/2/
>2009-
10?
D#t!!old#
n% 8ate
202//2-
>2010-
11?
##6&4
6d4
Inter%
re1ionalFinterchan1e fee
pa;able to the bank
issuin1 credit card
(IB (IB (IB (IB (IB
##6&4
6e4
Pa;ment of Fee or
Interest to Forei1n >o.t.
or International
Institution b; (epal
>o.t. under conclusion
of an; a1reement
bet=een (epal >o.t.
and Forei1n >o.t. or
International Institution
in fa.or of (epal >o.t..
% (IB (IB (IB (IB
##6&4
6f4
Pa;ment of interest up
to /!:!!! per annum
earned from fnancial
institutions based in
rural area: *ural
Ae.elopment bank:
Postal sa.in1 bank and
cooperati.e as per
under section //64.
% % % (IB (IB
##A
0indfall >ain Tax
F#nal Tax
% % % "8 "8
#-6/4
Pa;ment of >eneral
Insurance Premium
"d<ance tax
/." 8 /." 8
0ithdra=
n
0ithdra=
n
0ithdra=
n
#-6/4
Pa;ment of a
contractual amount in
excess of *s. "!:!!!
6the same pa;ment
under same contract
=ithin last /! da;s to be
considered4
"d<ance tax
/."8 /."8 /."8 /."8 /."8
#-6$4 Pa;ment to be made to
a non 3 resident person
b; a resident person
under a contract or
a1reement.
a. Air plane
Maintenance : H
a. "8 a. "8 a. "8
anil@kuber.com.np
34 of 22
7ther contract or
a1reements
b. Premium paid to
nonresident
insurance compan;
c. other than abo.e
b. /."8
c. As
prescrib
ed b;
I*A
b. /."8
c. As
prescrib
ed b;
I*A
b. /."8
c. As
prescrib
ed b;
I*A
-"A
6/4
>ain on transaction of
commodit; future
market
"d<ance tax
% % % /!8 /!8
anil@kuber.com.np
35 of 22
:ec
T'pe o5 pa'ment
D#t!!old#
n% 8ate
2021/20
>2002-
0/?
D#t!!old#
n% 8ate
2020/23
>200/-
0-?
D#t!!old#
n% 8ate
2023/22
>200--
09?
D#t!!old#
n% 8ate
2022/2/
>2009-
10?
D#t!!old#
n% 8ate
202//2-
>2010-
11?
-"
A
64
6a4
>ain on disposal of
securities listed =ith
5ecurities +xchan1e %
entit; conductin1
securit; transactions
=ithhold tax at the
rateI
%*esident (atural
Person "d<ance Tax
%7thers. "d<ance Tax
/!8
/"8
/"8
/"8
/!8
/"8
/!8
/"8
-"
A
64
6b4
Pa;ment of >ain from
the Aisposal of
5ecurities not listed
=ith 5ecurit; +xchan1e
% entit; =hose
securities ha.e been
disposed should
=ithhold tax at the
rateI
%*esident (atural
Person
"d<ance Tax
%7thers. "d<ance Tax
/!8
/"8
/"8
/"8
/!8
/"8
/!8
/"8
-"
A
6$4
6b4
'apital 1ain on
disposal of land and
buildin1 6non%business
assets4 of a natural
person 3 Band *e.enue
Aepartment to
=ithhold tax at the
time of re1istration
transfer
a. 7=nership more
than " ;ears
b. 7=nership less than
" ;ears
-"d<ance Tax
"8
/!8
"8
/!8
anil@kuber.com.np
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