Nepal — Corporate Income Tax
ALWAYS read this skill before touching any Nepal corporate income tax work. Use whenever asked about Nepal company tax for a resident entity.
Key facts — Nepal, 2025
| Field | Value |
|---|---|
| Country / authority | Nepal — Inland Revenue Department (IRD), ird.gov.np |
| Currency | NPR |
| Income year | Shrawan 1 – Ashad end (BS); FY 2082/83 ≈ mid-July 2025 – mid-July 2026 |
| Primary legislation | Income Tax Act 2058 (2002), as amended by Finance Act 2082 |
| Normal rate | 25% of taxable income (general companies, firms, industries) |
| Sector rate | 30% — see §3.2 |
| Special industries (Sec 11) | Effective 20% (25% normal less a 20% rebate) |
| Validated by | Pending — Nepali CA / registered tax practitioner |
| Skill version | 1.0 |
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ALWAYS read this skill before touching any Nepal corporate income tax work. Use whenever asked about Nepal company tax for a resident entity. Trigger on phrases like "Nepal corporate tax", "Nepal CIT", "company tax Nepal", "25% corporate Nepal", "30% bank tax Nepal", "special industry rebate Nepal", "Section 11 Nepal", "Income Tax Act 2058 company", or "FY 2082/83 company". Covers the Income Tax Act 2058 (2002) as amended by the Finance Act 2082: the 25% normal rate, the 30% sector rate (banks/insurance/telecom/liquor-tobacco/etc.), and the effective 20% for special industries. Out of scope — personal income tax (separate skill), TDS (separate skill), payroll/SSF, VAT, and sector special computational regimes.
The full rule
Nepal — Corporate Income Tax — Skill v1.0
Produced by OpenAccountants (openaccountants.com). Research-grade (tier 2) for FY 2082/83. Source provenance: figures derive from Nepali professional-firm tax-fact publications (PKF T.R. Upadhya, Baker Tilly Nepal) reflecting the Income Tax Act 2058 and Finance Act 2082 — not re-anchored to primary IRD pages. A Nepali CA must confirm against the statute before reliance. Not tax advice.
Section 1 — Quick reference
| Field | Value |
|---|---|
| Country / authority | Nepal — Inland Revenue Department (IRD), ird.gov.np |
| Currency | NPR |
| Income year | Shrawan 1 – Ashad end (BS); FY 2082/83 ≈ mid-July 2025 – mid-July 2026 |
| Primary legislation | Income Tax Act 2058 (2002), as amended by Finance Act 2082 |
| Normal rate | 25% of taxable income (general companies, firms, industries) |
| Sector rate | 30% — see §3.2 |
| Special industries (Sec 11) | Effective 20% (25% normal less a 20% rebate) |
| Validated by | Pending — Nepali CA / registered tax practitioner |
| Skill version | 1.0 |
Conservative defaults
| Ambiguity | Default |
|---|---|
| Sector unclear | Apply 25% normal |
| Whether 30% sector rate applies | Apply 30% if the entity is in any §3.2 sector; flag |
| Special-industry (Sec 11) rebate claimed | Apply 25% until eligibility confirmed; flag |
Section 2 — Refusal catalogue
R-NP-CT-1 — Sector special computational regimes (banking provisioning, insurance, petroleum) — out of scope; escalate.
R-NP-CT-2 — Special-industry / export / SEZ concessions beyond the headline Section 11 rebate — VERIFY against the Act; escalate.
R-NP-CT-3 — Cross-skill. Personal → nepal-income-tax; TDS → nepal-tds; payroll/SSF → nepal-payroll; VAT → nepal-vat.
Section 3 — Tier 1 rates
3.1 Normal rate — 25%
The standard corporate income tax rate is 25% of taxable income for general companies, firms, and industries.
3.2 Sector rate — 30%
A 30% rate applies to entities in these sectors:
- Banks and financial institutions (commercial/development banks, finance companies)
- General (non-life) insurance
- Financial-transaction (money-transaction) entities
- Petroleum
- Cigarettes, tobacco, cigars, pan masala, alcohol, beer
- Telecommunications and internet service providers
- Money transfer
- Capital market / securities / merchant banking / brokerage businesses
3.3 Special industries — effective 20% (Section 11)
"Special industries" under Section 11 receive a 20% rebate on the normal rate, yielding an effective 20% (25% × 80%). Confirm eligibility under Section 11.
Rates are unchanged from FY 2024-25. Source: PKF Trunco; Baker Tilly; actNepal (Section 11 mechanism).
Section 4 — Tier 2 (capital gains for entities)
- Listed shares disposed by a resident entity: 10%.
- Land/building owned by a non-individual (entity): 1.5%.
- (Individual rates are in
nepal-income-tax/ a CGT context.)
Section 5 — Worked examples
- General company, taxable income NPR 20,000,000 → CIT = 25% × 20,000,000 = NPR 5,000,000.
- Commercial bank, taxable income NPR 20,000,000 → CIT = 30% × 20,000,000 = NPR 6,000,000.
- Qualifying special industry, taxable income NPR 20,000,000 → CIT = 20% × 20,000,000 = NPR 4,000,000.
Section 6 — Filing
- Income year Shrawan 1 – Ashad end; file via IRD with PAN.
- Annual return + instalment due dates — VERIFY (not established by the research).
Section 7 — Sources
Research-grade, FY 2082/83. Secondary firm publications — re-anchor to primary IRD/statute:
- PKF T.R. Upadhya & Co. "Tax Rates 2082-83" — https://pkf.trunco.com.np/files/publications/1748841198_Tax%20Rates%202082-83_Final_250601_213028.pdf
- Baker Tilly Nepal "Tax Fact 2025-2026" — https://bakertilly.com.np/storage/download/1750310698_Tax_Fact_2025-2026.pdf
- Income Tax Act 2058 (2002), Section 11 + Schedule 1 — confirm at https://ird.gov.np
- Finance Act 2082.
Known gaps / VERIFY: primary citations; full special-industry / export / SEZ concession schedule; annual return due dates.
Prohibitions
- NEVER apply 25% to a §3.2 sector entity — those are 30%.
- NEVER apply the Section 11 effective-20% without confirming special-industry eligibility.
- NEVER present these as primary-IRD-confirmed — flag for verifier re-anchoring.
- NEVER file or instruct filing — working paper for practitioner review only.
Disclaimer
For informational and computational purposes only; not tax, legal, or financial advice. All outputs must be reviewed and signed off by a qualified Nepali professional (CA / registered tax practitioner) before filing or acting upon. Latest verified version at openaccountants.com.
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