Guide to NEPAL Tax Law Research This guide has been prepared to help in finding out Tax Laws,

literature, treaties and other relevant information about Nepalese Tax Law. I. Tax Law: General: Taxes are imposed at two levels in Nepal. His Majesty's Government (Central Government) levies taxes nationwide whereas the local governments levy locally in different forms. Every year His Majesty's Government tables the Finance Bill in the parliament to impose tax. Tax rates are fixed by the Finance Bill. The Finance Bill is published in the Nepal Gazette. The following tax-related Acts and Rules are effective in Nepal: Income Tax Act, 2002 and Income Tax Rules, 2002 Value Added Tax Act, 1996 and Value Added Tax Rules, 1996 Excise Act, 2001 and Excise Rules, 2001 Customs Act, 1962 and Customs Rules, 1962 Vehicle Tax Act, 1974 Tax Arrears Clearance Commission Act, 1976 Revenue Tribunal Act, 1974 How to find : Originally, these laws are published in the Nepal Gazette. Nepal kanoon Kitab Bebastha Samiti (A Division of Law ministry) reproduces all the acts and rules. Both the Gazette and reproduced books are in Nepali language and are treated as legal documents. These books are available in the following address: Nepal Kanoon Kitab Byabastha Samiti, Babar Mahal, Kathmandu, Nepal Latest Finance Bill, Income Tax Act, 2002 and Income Tax Rules, 2002 Value Added Tax Act, 1996 and Value Added Tax Rules, 1996 are available (Free of cost) in English and Nepali in
www.ird.gov.np

Regmi Research (Private) Ltd., a private publisher has translated all the tax laws in English. These translations are treated as unofficial. To know more about Regmi Research (Private) Ltd,
www.regmisearch.com

II.

Treaties: Nepal has Tax Treaties with 9 Countries. The purpose of the treaty is to relieve double taxation and to prevent fiscal evasion and to ensure reciprocal administrative assistance in the enforcement of tax liabilities. In case, existing income tax law contradicts the treaty, the provisions of the treaty prevail. For full text of all the treaties www.ird.gov.np Administrative Materials: In the process of implementing a tax Act, Government clarifies the provisions by way of public circulars. The Inland Revenue Department publishes Public Circulars regarding Income Tax Act, Value Added Tax and Excise Act in the national newspapers. Those circulars are put in the web site www.ird.gov.np. These circulars are binding on the tax administration. The Department compiles all the circulars annually and publishes them. This publication is available in
www.ird.gov.np

III.

IV.

Case Law : Decisions on tax cases by the Supreme Court have been compiled and published by Mr. Sheshraj Sibakoti. This publication is in Nepali language and is available at the following address: Gyangun Research Institute Maitidevi, Kathmandu, Nepal Periodicals, other books and Information: Revenue Administration Training Center publishes "RAJASWO" magazine in every four months. This Magazine covers articles on revenue and tax matters. This is available at the following address: Revenue Training Center, Pulchouk, Lalitpur, Nepal Many writers have published books on the Nepali Tax System. A few are listed below. VAT and it's relevancy to Nepal- 1997 Author : Dr. Rup Khadka Publisher : Ratna Pustak Bhandar, Kathmandu, Nepal Income Taxation in Nepal Retrospect & Prospect-2001 Author : Dr. Rup Khadka Publisher : Ratna Pustak Bhandar, Kathmandu, Nepal The Nepalese Tax System 2000 Author : Dr. Rup Khadka Publisher : Sajha Publications, Kathmandu, Nepal VAT in Nepal 2001 Author : Dr. Rup Khadka Publisher : UPS Publishers, New Delhi, India Municipal Finance in Nepal Retrospect & Prospect-2002 Author : Dr. Rup Khadka Publisher : CEGG, Kathmandu, Nepal VAT: Four years of Implementation-2001 Retrospect & Prospect-2001 Edited by : Dr. Rup Khadka Publisher : Inland Revenue Department, Kathmandu, Nepal Value Added Tax (VAT): A Nepalese experience-1999 Author : Narayan Silwal Property Tax in Nepal: Theory and Practice - 1994 Author : Dr. Badri Pokhrel Publisher : Revenue Training Center, Pulchouk: Lalitpur, Nepal

V.

Taxation in Nepal: Planning and Management -1999 Author : C.M.Adhikari Publisher : Shristi Publication, Chabhill : Kathmandu, Nepal Value Added Tax in Nepal : Theory and Practice Author : C.M.Adhikari Publisher : Pairavi Prakasan, Putalisadak,Kathmandu, Nepal Value Added Tax -1999 Author : Binod Acharya Publisher : Kalas Finance, Lalitpur, Nepal Corporate Tax Planning in Nepal 1998 Author : Karna B. Poudyal Modern Income tax system in Nepal-2003 Author : Vidyadhar Mallik Present tax system in Nepal-2003 Author : Puspa Raj Kadel Publisher : Buddha Academic Enterprises pvt. Ltd., Putalisadak, Kathmandu, Nepal For more Information about Inland Revenue Department, Tax laws, Tax Manual, Annual Tax Report, Tax Statistics and other Tax activities www.ird.gov.np VI. Tax Collection by the local governments: Besides the taxes collected by His Majesty's Government, the local governments (District Development Committee, Municipality and Village Development Committee) are also empowered to collect House and Land Tax, Property Tax and a few other taxes in the form of fees. The rate and collection procedure of these Fees and Taxes are subject to their decision. Prepared by Padmanav Singh Karky, Inland Revenue Department Ministry of Finance, Kathmandu, Nepal