If your business has outstanding tax liabilities sitting from previous years — assessed dues, pending disputes, or simply returns you never quite caught up on — the Finance Bill 2083 introduced one of the more generous settlement schemes Nepal has offered in recent years.
What the scheme actually offers
Under the current provisions, a broad range of taxpayers can settle outstanding tax liabilities by paying the principal tax amount plus an additional 1% — with interest, fees, additional fees, penalties, and late fees fully waived. Previous amnesty schemes typically still required a portion of interest or late fees; this one goes further.
What's covered
The scope is wide. It covers assessed tax dues, cases pending administrative review or in court, customs post-clearance audit matters, dues arising from annual Finance Act changes, dormant company compliance gaps, and even pending income tax and VAT cases under dispute.
Why this matters if you've been putting it off
For a dormant or inactive company with unfiled returns sitting for a few years, the accumulated late fees and penalties can often dwarf the actual principal tax owed. A scheme like this is specifically designed to make clearing that backlog financially sensible rather than something to keep avoiding.
The practical risk of waiting
Amnesty windows are time-bound by nature — this isn't a permanent standing offer, and previous schemes have had firm cutoff dates after which the full penalty structure snaps back into place. If you're carrying old liabilities, the cost of acting now is a fraction of the cost of missing the window.
What to do next
Before applying, get an accurate picture of exactly what's owed — principal, by year, across income tax and VAT separately, since they're assessed independently. A qualified accountant can reconcile this against IRD records — this is exactly the kind of case our accounting and compliance team handles regularly and confirm the settlement amount before you file, since disputing a miscalculated figure after acceptance is far harder than getting it right upfront.
