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NP

Nepal

Southern Asia NPR

NP · NPL · #93 · 15 cities

Nomad score 53/100 Compare
Top income tax 27.0% effective 29.0%
Corporate tax 25.0%
VAT 13.0% standard rate
Tax residency 183 days 10 tax treaties

Nepal tax profile

Data year: 2026

Tax system
Worldwide Residents are taxed on worldwide income under the Income Tax Act, 2058. Non-residents pay tax on Nepal-source income. The income year runs from Shrawan 1 to the end of Ashadh (about 17 July to mid-July). VAT is levied at 13% on taxable supplies.
Top PIT rate
27.0% (eff. 29.0%)
Corporate tax rate
25.0%
VAT
13.0%
Capital gains tax
10.0% Advance tax on gains from disposal of listed securities is generally 10% for holdings under one year and 7.5% if held more than one year; unlisted entity interests and immovable property use separate rates (often 10% or 7.5% for natural persons on land held five years or more). The headline `capital_gains_tax_rate` reflects the common 10% rate on share disposals; property and entity-type schedules differ.
Social security (employee)
11.0%
Social security (employer)
20.0%
Dividend withholding
5.0%
Interest withholding
15.0%
Royalty withholding
15.0%
Treaty count
10
Tax authority: Inland Revenue Department Website

Income tax brackets

Corporate
Corporate brackets
Bracket min Bracket max Rate USD equivalent
NPR 0 and above 25.0% $0 +
Personal income
Personal income brackets
Bracket min Bracket max Rate USD equivalent
NPR 0 NPR 1,000,000 1.0% $0 – $7,463
NPR 1,000,000 NPR 1,500,000 10.0% $7,463 – $11,194
NPR 1,500,000 NPR 2,500,000 20.0% $11,194 – $18,657
NPR 2,500,000 NPR 4,000,000 27.0% $18,657 – $29,851
NPR 4,000,000 and above 29.0% $29,851 +
Local currency: NPR

Tax residency

Days threshold
183 days
Residency rules
A natural person is resident if they have a permanent home in Nepal, are present in Nepal for 183 days or more in a continuous period of 365 days, or are present for 183 days or more in an income year (with additional deeming rules for government employees and certain returnees).
Exit tax
No
CFC rules
No

Filing information

Fiscal year
07-17 – 07-16
Filing deadline
October 17
Extension deadline
January 14
Annual income tax returns are due within three months after the income year ends (by the end of Ashoj, about 17 October). The Department may grant up to three additional months on written application before the original due date (to about mid-January). Employment tax is withheld monthly under section 87.

Sources

Change history

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

    • Brackets updated

    Refreshed for Finance Act 2083 / FY 2083/84 — PIT slabs, top rates 27%/29%, brackets, WHT, SSF, fiscal year, filing deadlines, sources; Mauritius treaty termination (https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) (https://www.pradhanlaw.com/file-upload/files/P&A%20Client%20Briefing%20-%20Income%20Tax%20Rates%202083-84%20(2026-27%20AD).pdf)

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