Income Tax Rate in Nepal 2077\/78 (2020\/21)<\/a><\/li>\n<\/ul>\n \nFurthermore, the previous 15 and 25 percent income tax rates have been replaced with 10, 20 and 30 percent tax rates, respectively.<\/p>\n
The following tables present the income tax distribution as per individual, couples and non-resident Nepalis & couples:<\/strong><\/p>\n1) Income Tax Rates of Nepal For Resident Persons<\/strong><\/h3>\n\n\n\nParticulars<\/strong><\/span><\/td>\nNew Tax Rate<\/strong><\/span><\/td>\nTaxable Amount (NPR)<\/strong><\/span><\/td>\n<\/tr>\n\nFirst Tax Slab (3,50,000)<\/td>\n 1%<\/td>\n 3,500<\/td>\n<\/tr>\n \nNext (Yearly income up to 4,50,000)<\/td>\n 10%<\/td>\n 3,500 + 10,000 = 13,500<\/td>\n<\/tr>\n \nNext (Yearly income up to 6,50,000)<\/td>\n 20%<\/td>\n 13,500 + 40,000 = 53,500<\/td>\n<\/tr>\n \nNext (Yearly income up to 20,00,000)<\/td>\n 30%<\/td>\n 53,500 + 405,000 = 458,500<\/td>\n<\/tr>\n \nYearly income 20,00,000 and Above<\/td>\n 36%<\/td>\n Example:<\/strong> \nIf annual income is 2,500,000 \nTax amount up to 2,000,000 = 458,500 \nAdditional income of 500,000 = \nTotal tax on 500,000 = 180,000 (36%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n2)\u00a0 Income Tax Rates for Couples<\/strong><\/h3>\n\n\n\nParticulars<\/strong><\/span><\/td>\nNew Tax Rate<\/strong><\/span><\/td>\nTaxable Amount (NPR)<\/strong><\/span><\/td>\n<\/tr>\n\nFirst Tax Slab (Yearly income up to 4,00,000)<\/td>\n 1%<\/td>\n 4,000<\/td>\n<\/tr>\n \nNext (Yearly income up to 5,00,000)<\/td>\n 10%<\/td>\n 4,000 + 10,000 = 14,000<\/td>\n<\/tr>\n \nNext (Yearly income up to 7,00,000)<\/td>\n 20%<\/td>\n 14,000 + 40,000 = 54,000<\/td>\n<\/tr>\n \nNext (Yearly income up to 20,00,000)<\/td>\n 30%<\/td>\n 54,000 + 390,000 = 444,000<\/td>\n<\/tr>\n \nYearly income 20,00,000 and Above<\/td>\n 36%<\/td>\n Example:<\/strong> \nIf annual income is 2,500,000 \nTax amount up to 2,000,000 = 444,000 \nAdditional income of 500,000 = \nTotal tax on 500,000 = 180,000 (36%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n3) Income Tax Rates in Nepal For Non-Resident Persons<\/strong><\/h3>\n\n\n\nParticulars<\/strong><\/span><\/td>\nNew Tax Rate<\/strong><\/span><\/td>\nTaxable Amount (NPR)<\/strong><\/span><\/td>\n<\/tr>\n\nFirst Tax Slab<\/td>\n 1%<\/td>\n 350,000<\/td>\n<\/tr>\n \nNext<\/td>\n 10%<\/td>\n 100,000<\/td>\n<\/tr>\n \nNext<\/td>\n 20%<\/td>\n 200,000<\/td>\n<\/tr>\n \nNext<\/td>\n 30%<\/td>\n 13,00,000<\/td>\n<\/tr>\n \nBalance Exceeding<\/td>\n 36%<\/td>\n 20,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n<\/strong>4) Income Tax Rates in Nepal For Non-Resident Couples<\/strong><\/h3>\n\n\n\nParticulars<\/strong><\/span><\/td>\nNew Tax Rate<\/strong><\/span><\/td>\nTaxable Amount (NPR)<\/strong><\/span><\/td>\n<\/tr>\n\nFirst Tax Slab<\/td>\n 1%<\/td>\n 400,000<\/td>\n<\/tr>\n \nNext<\/td>\n 10%<\/td>\n 100,000<\/td>\n<\/tr>\n \nNext<\/td>\n 20%<\/p>\n30%<\/td>\n
\n200,000<\/p>\n
13,00,000<\/p>\n<\/td>\n<\/tr>\n
\nBalance Exceeding<\/td>\n 36%<\/td>\n 20,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \nAdditional income tax slabs for various sectors & industries across Nepal:<\/strong><\/h4>\n\nThe new policy has also increased excise duty on 150-250 cc two-wheelers from 10-70 percent<\/li>\n Additionally, two-wheelers above 250 cc will have to pay from 20-80 percent<\/li>\n Four-wheelers above 1,000-1,500 cc have been increased by five percent up to 56 percent<\/li>\n The government has levied 25 paisa \u2018health hazard tax\u2019 on every unit of cigarette, bidi, and cigar<\/li>\n Similarly, an additional Rs 25 per kg health hazard tax has been introduced for import or home-bound production of chewing tobacco<\/li>\n Income tax on telecommunications services has been increased by 5 percent to 30 percent<\/li>\n Special industries including tourist services, electricity production, manufacturing agriculture, mineral, forestry and distribution listed on Nepal Stock Exchange and industries listed as part of 11(3ga) will be entitled to a tax deduction of 15% on the applicable tax rate<\/li>\n Persons working in remote areas are entitled to a tax deduction of up to a maximum of NPR 5,000 on taxable income<\/li>\n<\/ul>\nIncome Tax Exemptions:<\/strong><\/h3>\nA.<\/strong> General Exemptions<\/strong><\/p>\nThe newly-introduced income tax policy doesn\u2019t include the following:<\/p>\n
\nIncome given and dividends shared by cooperatives in the agro-forestry industry<\/li>\n Income received by normal persons through agriculture from land within ownership ceiling<\/li>\n Income given and dividends shared by cooperatives under rural municipalities providing loan and savings services<\/li>\n<\/ul>\n \nB. Special Exemptions<\/strong><\/p>\n\nSpecial industries established with an investment of NPR 1 billion or more are excluded from the tax fold until five years from the date of establishment<\/li>\n Additionally, if these industries are further excluded from the tax fold if they employ 500 employees or more during the year of establishment<\/li>\n Special industries with an increased investment of up to NPR 1 billion after establishment are exempted from tax until 5 years from the date of increment of capital<\/li>\n These industries are further excluded from the tax fold if they employ 500 employees or more during the year of the establishment until 5 years from the date of increment of capital<\/li>\n Such industries will be exempted from tax if their increment amounts to 25% of installed capacity until five years from the date of capital increment<\/li>\n Mining Petroleum & Natural Gas industries<\/strong> will be exempted from taxes on commencement of commercial operation by April 12, 2024, for 7 years from the date of commercial operation<\/li>\nEnergy-based industries<\/strong> will be exempted from taxes on commencement of commercial operation by April 12, 2014, for 10 years from the date of commercial operation<\/li>\nTourism-related industries <\/strong>with the commencement of operation by April 12, 2014, will be exempted from taxes until five years from the date of commercial operation<\/li>\nAviation industry <\/strong>established with an investment of more than NPR 2 billion & conducting international flights will be exempted from tax until five years from the date of commercial operations<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"Presenting the budget for FY 2075\/76 B.S. the Nepal Government increased the income tax slab rates…<\/span><\/p>\nRead more<\/a><\/div>\n<\/p>\n","protected":false},"author":761,"featured_media":12517,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7042,3,1326,7640],"tags":[9758,8765,9755,9756,9754,9757,98,2994,177],"yoast_head":"\n
Nepal Income Tax Slab Rates for FY 2075-76 B.S. (2018-19)<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n