Asia-Pacific · Tax guide
Nepal
Nepal taxes companies at 25%, with higher rates for banks and lower rates for special industries, charges VAT at 13%, and requires employers to join the Social Security Fund. Taxes are administered by the Inland Revenue Department.
At a glance
- Corporate income tax
- 25%
- VAT
- 13%
- Withholding on payments abroad
- 15%
Higher for banks, lower for special industries
Registration above Rs 5,000,000 for goods
Royalties and services; lower on dividends
Income tax
Companies pay 25%, paid in three instalments and filed within three months of the year-end; the fiscal year ends in mid-July. Small businesses can pay presumptive tax.
VAT
VAT is 13%. Suppliers of goods register once turnover exceeds Rs 5,000,000; service providers have a lower threshold, and some businesses must register regardless. Returns are monthly by the 25th.
Payments abroad and employers
Royalties and services paid to non-residents carry 15%, with a lower rate on dividends, unless a treaty lowers it. Employers withhold income tax and contribute to the Social Security Fund.
Key dates
- By the 25th of each monthVAT and withholding returns
- Within three months of the fiscal year-endAnnual income tax return
Figures and sources
4 figures- Corporate income tax rate (30% for banks, 20% for special industries)25%Under professional review
- VAT rate13%Under professional review
- Annual turnover above which VAT registration is required (goods; lower for services)Rs 5,000,000Under professional review
- Withholding on royalties and services paid to non-residents (5% on dividends)15%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Nepal based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Nepal (a Nepali chartered accountant) before making compliance decisions.