Income Tax Rates 2081-2082 (2024-2025 A.D.)

Introduction

The Finance Act 2081 (2024 A.D.) (“Finance Act”) has been ratified by the Parliament and received Presidential authentication on July 16, 2024. The Finance Act shall be enforceable for the fiscal year 2081-2082 (2024-2025 A.D.) with effect from July 16, 2024 (Shrawan 1, 2081 B.S.). A Finance Bill is tabled at the Parliament by the Government of Nepal (“GON”) annually in order to amend various tax legislations.

With respect to income tax, the Income Tax Act 2058 (2002 A.D.) (“ITA”) forms the framework law. This Briefing highlights major aspects of ITA as amended by the Finance Act.

Major Highlights

• Digital Service Tax: Minimum threshold turnover amount for applicability of Digital Service Tax (“DST”) has been increased from NPR 2 Million to NPR 3 Million. Previously, DST was exempt if the annual turnover amount from Nepal did not exceed NPR 2 Million.
• Exemption of VAT for International Air Transport Service Providers (“IATSP”): Valued Added Tax (“VAT”), along with any fines, additional charges and interest, shall be waived if.........

To read the complete Client Briefing, kindly download the pdf by clicking 'Download pdf' button Above.