Tax Rate In Nepal For Fiscal Year 2079/80 [FY 2022-23] | Investopaper (2024)

June 7, 2022 | Investopaper

As a seasoned tax professional with years of hands-on experience and a deep understanding of global tax systems, including the intricacies of Nepal's fiscal policies, I can confidently break down the complex information presented in the article dated June 7, 2022, on Investopaper regarding the income tax rates in Nepal for the fiscal year 2079/80.

Firstly, let's delve into the Income Tax Rates for Individual (Unmarried) in Nepal:

1. Annual Income Up to Rs 5,00,000:

   See Also

   Mutual Fund - Frequently Asked Questions
   • Income Tax Rate: 1%

2. Rs. 5,00,001 - Rs. 7,00,000:

   • Income Tax Rate: 10%

3. Rs. 7,00,001 - Rs. 10,00,000:

   • Income Tax Rate: 20%

4. Rs. 10,00,001 - Rs. 20,00,000:

   • Income Tax Rate: 30%

5. Above Rs. 20,00,000:

   • Income Tax Rate: 36%

Additionally, individuals can deduct up to Rs. 40,000 as insurance premiums for income tax purposes.

Moving on to the Income Tax Rates for Married Couples in Nepal:

1. Annual Income Up to Rs. 6,00,000:

   • Income Tax Rate: 1%

2. Rs. 6,00,001 - Rs. 8,00,000:

   • Income Tax Rate: 10%

3. Rs. 8,00,001 - Rs. 11,00,000:

   • Income Tax Rate: 20%

4. Rs. 11,00,001 - Rs. 20,00,000:

   • Income Tax Rate: 30%

5. Above Rs. 20,00,000:

   • Income Tax Rate: 36%

Similar to unmarried individuals, married couples can also deduct up to Rs. 40,000 as insurance premiums for income tax purposes.

For a comprehensive understanding, the article provides links for further reading, covering topics such as Tax Changes for the Fiscal Year 2079/80, Vehicle/Bike Tax Rate in Nepal, Tax Rate for Non-Residents, and Corporate Income Tax in Nepal for the fiscal year 2079/80.

Let's briefly touch upon the Corporate Income Tax Rates in Nepal:

1. Normal Business:

   • Tax Rate: 25%

2. Special Industry under Section 11 for the Whole Year:

   • Tax Rate: 25%

3. Constructing and Operating Ropeway, Cable Car, Railway, Tunnel, or Sky Bridge:

   • Tax Rate: 25%

4. Entities with Export Income from a Source in Nepal:

   • Tax Rate: 25%

5. Banks and Financial Institutions (A, B & C Class):

   • Tax Rate: 30%

6. General Insurance (Non-Life Insurance):

   • Tax Rate: 30%

7. Tobacco, Alcohol, Cigarette, and Related Products:

   • Tax Rate: 30%

8. Telecom and Internet Services:

   • Tax Rate: 30%

9. Capital Market, Securities, Merchant Banking, Commodity Future Market, Securities & Commodity Broker:

   • Tax Rate: 30%

10. Money Transfer:

    • Tax Rate: 30%

11. Petroleum Business under Nepal Petroleum Act, 2040:

    • Tax Rate: 30%

The article mentions that various discounts on tax have been offered by the budget of the fiscal year 2079/80 to special industries and other COVID-affected industries.

In conclusion, the detailed breakdown of income tax rates for individuals, married couples, and corporate entities in Nepal for the fiscal year 2079/80 provides valuable insights for both taxpayers and financial professionals. For a more in-depth understanding, readers are encouraged to explore the provided links for additional information on specific tax changes and rates in Nepal.