Nepal Income Tax RateIncome Tax Rate in Nepal for Nepal Financial Year 2074-75, Indian Financial Year 2017-18.

 

For the Financial year 2074-75 no change has been made in the tax rate. The tax rate for Resident and Non Resident individuals in Nepal are given below with applicable deductions allowable to both the assessees.

 

INCOME TAX RATE FOR FINANCIAL YEAR 2074-75

 

 

A. Income Tax Rate in Nepal for Resident Individuals FY 2074-75

 

1. Income Assessed as Individual

Income Slab Tax Rate
Income upto Rs. 3,50,000 1%
Rs. 3,50,000 to 4,50,000 15%
Amount Exceeding Rs. 4,50,000 25%

 

2. Income Assessed as Couple

Income Slab Tax Rate
Income upto Rs. 4,00,000 1%
Rs. 4,00,000 to 5,00,000 15%
Amount Exceeding Rs. 5,00,000 25%

If the taxable salary of an individual is more than Rs. 25 Lakhs, additional tax rate @ 40% shall be levied on the income above 25 lakhs.

Notes:

1. Rs. 50,000 deduction is available for natural persons working at remote areas

2. 25% of income prescribed under fist tax slab shall be allowed to be deducted by natural persons whose pension income is included in taxable income.

3. Additional 50% of income prescribed under first slab shall be allowed as deduction to incapacitated natural persons.

4. Rs. 20000/- or actual amount paid whichever is less is allowed as deduction from gross total income against LIC premium paid by resident natural persons.

5. Rs. 20000/- or actual amount paid whichever is less is allowed as deduction from gross total income against Health Insurance or premium paid by resident natural persons.

6. 25% of foreign allowance are to be included in the income from salary of employees who worked with foreign diplomatic of Nepal.

7. 75% rebate on allowances will be available to employees posted outside Nepal

8. 10% deduction is available to female employees whose income is only from employment

9. 15% tax rate is applicable to individuals having income from export

10. 50% discount on land registration fee is allowed to productive industries, except tobaco and alcahol.

11. 15% concession of applicable tax rate is available to special industries related with manufacturing, tourist services, electricity production and distribution listed on NEPSE and industries mentioned on section 13(ga). Special industries include Agricultural, Forestry and Mineral Industries.

 

B. Income Tax Rate in Nepal for Non Resident Persons for FY 2074-75

Nature of Income Tax Rate
Income earned from normal transactions 25% Flat Rate
Income earned from shipping, air transport, telecommunication services, postage, satellite, Optical fiber Project 5%
Income earned providing shipping, air transport of telecommunication services through the territory of Nepal 5%
Repatriation by Foreign Permanent Establishment 4%

 

 

FOR FINANCIAL YEAR 2073-74

 

A. Income Tax Rate in Nepal for Resident Individuals FY 2073-74

 

1. Income Assessed as Individual

Income Slab Tax Rate
Income upto Rs. 3,50,000 1%
Rs. 3,50,000 to 4,50,000 15%
Amount Exceeding Rs. 4,50,000 25%

 

2. Income Assessed as Couple

Income Slab Tax Rate
Income upto Rs. 4,00,000 1%
Rs. 4,00,000 to 5,00,000 15%
Amount Exceeding Rs. 5,00,000 25%

 

B. Income Tax Rate in Nepal for Non Resident Persons for FY 2073-74

Nature of Income Tax Rate
Income earned from normal transactions 25% Flat Rate
Income earned from shipping, air transport, telecommunication services, postage, satellite, Optical fiber Project 5%
Income earned providing shipping, air transport of telecommunication services through the territory of Nepal 5%
Repatriation by Foreign Permanent Establishment 4%

 

FOR FINANCIAL YEAR 2072-73

 

A. Income Tax Rate in Nepal for Resident Individuals FY 2072-73

 

1. Income Assessed as Individual

Income Slab Tax Rate
Income upto Rs. 2,50,000 1%
Rs. 2,50,000 to 3,50,000 15%
Amount Exceeding Rs. 3,50,000 25%

 

2. Income Assessed as Couple

Income Slab Tax Rate
Income upto Rs. 3,00,000 1%
Rs. 3,00,000 to 4,00,000 15%
Amount Exceeding Rs. 4,00,000 25%

 

B. Income Tax Rate in Nepal for Non Resident Persons for FY 2072-73

Nature of Income Tax Rate
Income earned from normal transactions 25% Flat Rate
Income earned from shipping, air transport, telecommunication services, postage, satellite, Optical fiber Project 5%
Income earned providing shipping, air transport of telecommunication services through the territory of Nepal 5%
Repatriation by Foreign Permanent Establishment 4%

 

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