Services

Taxation Services (as per Nepalese law)

Our firm provides taxation services under Nepal's current legal framework, ensuring expert guidance and compliance across all direct and indirect taxes regulated by the Inland Revenue Department (IRD) under the Ministry of Finance. We support clients with tax planning, filing, advisory, and dispute resolution while keeping up with evolving tax policies. Our approach is designed to minimize risks, improve efficiency, and deliver practical solutions tailored to both individuals and businesses.

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Income Tax

Preparation & Filing

Accurate filing of Individual and Corporate Income Tax Returns, including Advance Tax and Final Returns.

Tax Planning & Optimization

Strategies tailored to Nepal's progressive tax slabs and allowances.

TDS (Withholding Tax) Compliance

Management of applicable TDS rates—including service fees (1.5% if recipient is VAT-registered or supplies exempt services, otherwise 15%), rents, royalties, contracts, transport, etc.

Representation & Dispute Support

Assistance with audit processes, objections, review, appeals, and advance rulings through IRD's formal channels.

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Value Added Tax (VAT)

VAT is a major source of indirect revenue under the VAT Act, 2052 (1996), administered by the IRD.

VAT Registration

Mandatory when turnover exceeds NPR 50 lakh (goods) or NPR 20 lakh (services), or if operating in specified sectors (e.g., tourism, electronics, software, etc.)

Registration Process

Application, approval by a Tax Officer, issuance and display of registration certificate, and timely updates for any changes.

Return Filing

Monthly filings due within 25 days from the end of the Nepali month. Certain businesses (hotels, media) may file bi-monthly or quarterly.

VAT Rate & Scope

Standard rate: 13% on domestic supplies and imports. Zero‑rated (0%): exports and specified supplies. Exemptions: Basic goods/services (education, medicines, agriculture, air or passenger transport).

Credit & Refund

Input VAT can be credited against output VAT. Exporters with excess input VAT and ≥40% exports may claim refunds—interest applies if delayed.

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Customs Duty

Customs duty is levied on imported (and sometimes exported) goods, vital for businesses engaged in international trade.

Classification & Valuation

Correct assessment under Nepal Customs Tariff; rates range between 0–80%.

Import Documentation & Filing

Ensuring accurate customs declarations and certifications.

Advisory on Exemptions & Special Duties

Support for agriculture reform fees, special protective duties, anti-dumping, and safeguard duties as outlined in the Finance Act and Customs Rules.

Cost Management

Awareness of added charges like warehouse fees and demurrage that impact total import cost.

Compliance & Dispute Support

Liaison during customs audits, inquiries, and formal representation.

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Excise Duty

Governed by the Excise Duty Act, 2058 (2002), excise duty applies to selected domestically produced or imported goods. Recent expansion includes soft drinks (NPR 25 per liter), cosmetics, cold drinks, electronic cigarettes (30%), shaving machines, and utensils.

Determining Applicability

Identifying whether your product or service is subject to excise duty.

Duty Calculations & Timing

Duties based on factory price or customs values; payment due on discharge/import/manufacture or invoice date.

Licensing & Compliance

Assisting in obtaining and renewing excise licenses, avoiding penalties, and preventing cancellation.

Return Filing & Record‑keeping

Monthly excise returns within 25 days of the end of each month—even if no activity occurred—and maintaining compliance documentation.

Audit & Appeal Support

Representation during excise audits or assessments, and support with appeals if needed.