Doing Business in Nepal
Snapshot of Direct Tax in Nepal
Income year in Nepal is calculated from mid-July of one year to mid-July of the following year - the
exact dates vary as per local calendar.
➤ Tax at the rate of 25% of the net profit is applicable for companies in Nepal (with concessional rates
for industries operating in specified areas).
➤ Nepal has the Tax Treaties with the following countries:
Austria
Bangladesh
India
Mauritius
China
Norway
Pakistan
Qatar
South Korea
Thailand
Sri Lanka
➤ There are provisions in the domestic tax laws of Nepal which restricts treaty benefits to only those
persons who satisfy the following conditions -
•
The person is a resident of the other country and
50 percent or more of the underlying ownership of the entity should be held by individuals or
entities who are residents of that country.
Doing Business in Nepal
PwC
May 2019
15View entire presentation