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TAX RATES > Nepal Tax Rates ALBANIA ALGERIA ANDORRA ANGOLA ANGUILLA ANTIGUA & BARBUDA ARGENTINA ARUBA AUSTRALIA AUSTRIA AZERBAIJAN BAHAMAS BAHRAIN BANGLADESH BARBADOS BELARUS BELGIUM BELIZE BENIN BERMUDA BOSNIA & HERZEGOVINA BOTSWANA BRAZIL BRITISH VIRGIN ISLANDS BRUNEI BULGARIA BURKINA FASO BURMA BURUNDI CAMBODIA CAMEROON CANADA CAPE VERDE CAYMAN ISLANDS CENTRAL AFRICAN REP. CHAD CHILE CHINA COLOMBIA COMOROS CONGO, DEM. REPUBLIC CONGO, REPUBLIC OF COOK ISLANDS COSTA RICA COTE D'IVOIRE CROATIA CUBA CURAAO CYPRUS CZECH REPUBLIC DENMARK DJIBOUTI DOMINICA DOMINICAN REPUBLIC ECUADOR EGYPT EL SALVADOR EQUATORIAL GUINEA ESTONIA FIJI FINLAND FRANCE FRENCH POLYNESIA GAMBIA GEORGIA GERMANY GHANA GIBRALTAR GREECE GRENADA GUATEMALA GUERNSEY GUYANA HONDURAS HONG KONG HUNGARY ICELAND INDIA INDONESIA IRAN IRELAND ISLE OF MAN ISRAEL ITALY
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4/21/2011
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IVORY COAST JAMAICA JAPAN JERSEY JORDAN KAZAKHSTAN KENYA KUWAIT LATVIA LEBANON LIBYA LITHUANIA LUXEMBOURG MACAU MADAGASCAR MADEIRA MALAWI MALAYSIA MALDIVES MALTA MAURITIUS MEXICO MOLDOVA MONACO MONTENEGRO MOROCCO MOZAMBIQUE MYANMAR NAMIBIA NEPAL NETHERLANDS NETHERLANDS ANTILLES NEW ZEALAND NICARAGUA NIGERIA NORWAY OMAN PAKISTAN PALESTINE PANAMA PAPUA NEW GUINEA PARAGUAY PERU PHILIPPINES POLAND PORTUGAL PUERTO RICO QATAR ROMANIA RUSSIA RWANDA SAUDI ARABIA SENEGAL SERBIA SIERRA LEONE SINGAPORE SLOVAKIA SLOVENIA SOUTH AFRICA SOUTH KOREA SPAIN SRI LANKA SWAZILAND SWEDEN SWITZERLAND SYRIA TAIWAN TANZANIA THAILAND TUNISIA TURKEY TURKS AND CAICOS UGANDA UKRAINE UNITED ARAB EMIRATES UNITED KINGDOM UNITED STATES URUGUAY UZBEKISTAN VANUATU VENEZUELA VIETNAM WEST BANK YEMEN ZAMBIA ZIMBABWE
Gain from Non Business Chargeable Assets includes - gain from sale of shares of companies, - gain from sale of land and building owned and resided for less than 10 years and disposed for more than Rs.50 lakhs. Special Tax Rates for Natural Persons Particulars For incomes earned from operating special industries For incomes earned from export business Tax Deductions and Facilities for Resident Persons Life Insurance Premium - While calculating taxable income, life Insurance premium paid by a resident natural person is deductible up to the limit of Rs 20,000. Employees working in Diplomatic Agencies - 75% of foreign allowance is deducted from taxable income in case of an employee employed at diplomatic agencies of Nepal situated at foreign countries. Incapacitated natural persons - In case of incapacitated natural persons, the minimum exemption limit (Rs.1,60,000 for individual and Rs.2,00,000 for couples) is increased by additional 50%. Remote Area Benefit - In case of resident natural persons working in remote areas, minimum exemption limit shall be increased by Rs 30,000, Rs 24,000, Rs 18,000, Rs 12,000 or Rs 6,000 depending on remote area category of A, B, C, D and E prescribed in Income Tax Rules 2059. Additional limit for pension income - If income of a resident natural person includes pension income, the taxable income is first reduced by additional 25% or pension amount included in income whichever is lower and then tax liability is calculated on balance income. Tax Credits for Resident Persons Medical Tax Credit - In case of approved medical expenses, medical tax credit is available to resident natural persons as deduction from tax liabilities. The limit prescribed is Rs.750 or 15% of Approved medical expense or actual approved medical expense incurred whichever is lower. Any unutilized expenses can be carried forward to next year. Foreign Tax Credit - If foreign income is included in taxable income of a resident person, foreign tax credit for tax paid in foreign country in respect of that income. The foreign tax paid can either be deducted as expense or tax liability in Nepal can be reduced by such tax paid up to average rate of tax applicable in Nepal, depending on the option of tax payer. Applicable Tax Rates 20% where 25% tax rate applies 20% where 25% tax rate applies
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4/21/2011
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Advance Income Tax Income Tax for fiscal year should be paid in 3 installments as follows: Instalment First Second Third Time Period Up to Mid-January (Poush end) Up to Mid- April (Chaitra end) Up to Mid-July (Ashadh end) Amount 40% 70% 100%
Where an instalment of tax paid by a person is less than 80% of Tax Payable, interest shall be levied @ 10% for each month and part of month from the date of first installment on the amount to the excess of 80% of the instalment that would have paid over the installment paid. The presumptive tax-payers need not require paying any advance tax as above. Further if the Tax Amount for the fiscal year is less than Rs 5000, installment is not required to be paid. Carry Forward of Loss - Carry Forward of Loss from Business and Investment can be made up to 7 years. - Carry Forward of Loss can be made up to 12 years in case of Projects building, operating & transferring public infrastructure to the Nepal Government, Projects building Electricity Production House, generating & transmitting electricity and entities dealing in petroleum products under Nepal Petroleum Act, 2040. - Loss incurred in business or investment where assessee enjoys full / partial tax exemption cannot be carried forward. Penalty for Non-Filing of Income Tax Return on Time - Non-Filing of Estimated Income Tax Return Income u/s 95 within due date shall attract penalty of Rs. 2000 per Return. - Non-Filing of Income Tax Return Income u/s 96 within due date shall attract penalty of @ 0.10% of Annual Turnover or Rs. 100 per month whichever is higher. Tax Concession and Rebates - 10 Years Tax Holiday from date of operation and 50% Tax Rebate thereafter to industries established in Special Economic Zone (SEZ) of Himalayan Districts and other prescribed Hilly District. - 5 Years Tax Holiday from date of operation and 50% Tax Rebate thereafter to industries established in other Special Economic Zone (SEZ). - 100% Rebate for first 5 Years from date of operation and then 50% Rebate for next 3 Years on dividend distributed by industries established in Special Economic Zone (SEZ). - 50% Rebate on Income Tax on income from Foreign Technology or Management Consultancy or Royalty earned by foreign investors of industry established in SEZ. - 10 Years Tax Holiday from date of operation to industries established in remote areas. - 25% Tax Rebate to IT Industries established in prescribed Information Technology Park. - Entities having license for Electricity generation, transmission & distribution, if commences generation / generation & transmission / generation & distribution / generation, transmission & distribution of Hydro-electricity commercial manner by Chaitra end, 2075; such entities shall have Tax Holiday for a period of first 7 Years and 50% Tax Rebate thereafter for 3 Years, from date of such commencement of generation, transmission & distribution. Such facilities shall also be applicable for Electricity generated from Solar/Wind/Organic Materials. However, entities already having started commercial production of electricity before Shrawan 01, 2066 shall be eligible for facility as prevalent at the time of obtaining license - 50%, 30% & 25% Rebate on Income Tax for 10 Years including the year of operation to Special Industries operating in Highly Undeveloped, Undeveloped & Under-developed areas respectively. - 10 % Rebate on Income Tax to Special Industries and IT Industries which provide direct employment to 300 Nepalese nationals throughout the year. [Earlier, it was 500 Nepalese]. - 20 % Rebate on Income Tax to Special Industries which provide direct employment to 1200 Nepalese nationals throughout the year. - 20 % Rebate on Income Tax to Special Industries which provide direct employment to 100 Nepalese nationals including 33 percent women, dalits (the downtrodden) or the handicapped, throughout the year Tax Deduction at Source (TDS) rates Resident employer should withhold tax while making employment income payment with sources in Nepal to an employer as follows. (Monthly TDS = Annual Tax calculated as per schedule 1 on annual employment income divided by 12) Particulars / Tax Rates - On Interest, Royalty, Service Charge, Retirement Payment having source in Nepal, except mentioned otherwise: 15% - Payment made to resident person on Service Charge invoiced in VAT bill: 1.5% - On Nepal sourced Interest by Banks and financial institutions and/or listed companies to a natural person. Such payment should not be made in connection with operation of any business: 5% - On payment made by a resident person for rent having source in Nepal: 10% - On payment of gain from Investment Insurance: 5% - On payment of gain from retirement fund: 5% - On payment of commission by resident employer company to a non resident person: 5% - On payment of lease rental of aircraft: 10% - On payment of premium to non-resident insurance companies: 1.5% - On gain from transaction on commodity future market: 10% - On windfall gains except national and international level prizes as prescribed by Nepal Government: 25%
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4/21/2011
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