Nepal's corporate tax structure is tiered by sector rather than flat — knowing which bracket applies to your business materially affects your effective tax rate.
Standard Rate — 25%
Most general businesses, trading companies, and service providers fall under the standard 25% corporate income tax rate.
Higher Rate — 30%
Banks, financial institutions, insurance companies, telecom operators, and businesses dealing in tobacco, alcohol, or petroleum pay a higher 30% rate, reflecting their regulated or revenue-heavy sectors.
Reduced Rate — 20%
Special manufacturing industries benefit from a reduced 20% rate, part of Nepal's ongoing push to encourage domestic industrial production.
IT Exporters — 75% Rebate
IT companies exporting services abroad receive a 75% rebate on export income, one of the more generous sector incentives in the current tax code, aimed at growing Nepal's software and BPO export sector.
The FY 2083/84 Budget Left These Largely Unchanged
While personal income tax slabs were overhauled in the FY 2083/84 budget, corporate rates by sector remained stable — the changes were concentrated on individual filers, not businesses.
Not sure which bracket your business qualifies for, or whether you're eligible for a sector rebate? Company Sathi's tax advisors can confirm your correct rate.
