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 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% |
| 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.
| 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% |
| 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% |
| 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% |
| 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% |
| 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% |
| 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% |
| 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% |