Tax compliance is a critical obligation for every business operating in Nepal. The Income Tax Act 2058 governs business taxation and staying current with rates and deadlines is essential to avoid penalties.
Corporate Tax Rates
- General businesses: 25% of taxable income
- Banks and financial institutions: 30%
- Manufacturing & tourism: 20%
- IT & startups: 15% (conditional)
Key Filing Deadlines
Nepal's fiscal year runs Shrawan to Ashadh (mid-July to mid-July). Annual tax returns must be filed within 3 months of fiscal year end (by mid-October).
Advance Tax Payments
Businesses with significant expected tax liabilities must pay in three installments: Poush, Chaitra, and Ashadh. Late payments incur 15% interest.
TDS Obligations
Deduct TDS on salaries, rent, professional fees, and contractor payments. Deposit to the IRD within 25 days of the month end.
Company Sathi provides comprehensive tax filing and compliance services.
