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Income Tax Rate in Nepal for Nepal Financial Year 2075-76, Indian Financial Year 2018-19.

 

The tax rate for Resident and Non Resident individuals in Nepal for Financial year 2075-76 are given below with applicable deductions allowable to both the assessees.

 

INCOME TAX RATE FOR FINANCIAL YEAR 2075-76

 

 

A. Income Tax Rate in Nepal for Resident Individuals FY 2075-76

 

1. Income Assessed as Individual

Income Slab Tax Rate
Income upto Rs. 3,50,000 1%
Rs. 3,50,000 to 4,50,000 10%
Rs. 4,50,000 to 6,50,000 20%
Rs. 6,50,000 to 20,00,000 30%
Amount Exceeding Rs. 20,00,000 36%

 

2. Income Assessed as Couple

Income Slab Tax Rate
Income upto Rs. 4,00,000 1%
Rs. 4,00,000 to 5,00,000 10%
Rs. 5,00,000 to 7,00,000 20%
Rs. 7,00,000 to 20,00,000 30%
Amount Exceeding Rs. 20,00,000 36%

1. Natural person working at remote areas are entitled to get deduction from taxable income to a maximum of Rs. 50000.

2. Natural person with pension income included in the taxable income shall be entitled to deduct from taxable income an additional 25% of the amount prescribed under first tax slab.

3. An incapacitated natural person shall be entitled to get a deduction from taxable income an additional 50% of the amount prescribed under first tax slab.

4. A Resident natural person who has procured life insurance and paid premium amount thereon shall be entitled to a deduction of actual annual insurance premium or Rs. 20000 whichever is less from gross taxable income.

5. A Resident natural person who has procured Health Insurance and paid premium amount thereon shall be entitled to a deduction of actual annual insurance premium or Rs. 20,000 whichever is less from gross taxable income.

6. In case of the employee employed at the foreign diplomatic of Nepal only 25% of the foreign allowances are to be included in the income from salary.

7. In case of the employee posted outside Nepal is getting foreign allowance will get 75% rebate of such allowance.

8. In case of the female employee whose taxable income is only from employment than 10% rebate is allowed on tax liability.

9. In case of individual having income from export, tax rate of 15% is applicable in place of 25%.

10. The limit of 7% of Depreciable Base is not applicable on the repair and improvement expenses incurred for assets located at earthquake affected areas prescribed by GON, in case the person desires to apply this provision. This facility is allowed until FY 2073/74.

11. Productive industries, except tobacco and alcohol industries are eligible to get 50% discount on land registration fee.

12. Special Industries related with manufacturing, tourist services, electricity production and distribution listed on NEPSE and industries mentioned on section 11(3ga) shall be provided with concession of 15% on applicable tax rate. This budget has included Agricultural, Forestry and Mineral Industries also in to the category of Special 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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