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 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% |
| 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.
| 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% |