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  • Nepal Introduces ‘Online’ Tax Filing and Payment Method!
    Thursday 28th March 2024

    Nepal Introduces ‘Online’ Tax Filing and Payment Method!

    The electronic payment method is expected to benefit over half a million small taxpayers.
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    Nepal Introduces ‘Online’ Tax Filing and Payment Method!

    On July 16, 2020, the first day of the new FY 2020/21, the Nepali Government has introduced an online payment method for small taxpayers.

    With the new system, taxpayers with annual transactions of up to NPR 2 million and income tax of up to NPR 200,000 can file their tax details and pay income taxes through mobile apps or other electronic mediums.

    The electronic payment method is expected to benefit over half a million small taxpayers as it will eliminate the hassle and lengthy process of visiting tax offices for tax returns.

     

    Taxpayers outside Kathmandu are supposed to travel a long distance to visit income tax offices and banks to complete the tax filing process.

    People have long been complaining that the costs associated with filing income details, paying taxes and getting tax clearance would sometimes exceed the tax amount.

    ALSO READ | Nepal Income Tax slab tax rates for Financial Year 2077-78 (2020-21)

    Inaugurating the electronic payment system, Finance Minister Yuba Raj Khatiwada said that the new system would address the concerns of the small taxpayers.

    Finance Minister Dr. Yuba Raj Khatiwada

    “Filling up long forms to submit income details, making payment after tax assessment and getting tax clearance was quite hassling for many taxpayers. This new system has made it convenient and easier for taxpayers to pay taxes and get a tax clearance certificate,” said Minister Khatiwada.

    However, those who have no access to technology are supposed to visit their designated backs to file their income and pay taxes.

    According to the Inland Revenue Department, the government has received around 411,000 income tax filings from small taxpayers in the last FY 2019/20, accounting for nearly 1% of the country’s total income tax collection.

    As per the IRD guidelines, a small taxpayer registered at metropolitan cities has to pay NPR 7,500 in income tax. Meanwhile, those in the urban municipality should pay NPR 4,000 and in the rural municipality should pay NPR 2,500.

    However, the Nepali Government has provided a 75% waiver on the income tax payment in view of the coronavirus pandemic.

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