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Accountant-authored. Written and published by Ashish Bista, an accountant approved on OpenAccountants. Their licence number (ICAN: 1765) is published on their profile, so you can check it against the register yourself. No second accountant has attested to this version yet. General reference material, not advice on your specific facts; don't file, pay, or take a position on it without a professional reviewing your situation.
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Every figure is drawn from this Guide and cited to its source.
Normal rate
25%Income Tax Act 2058 Sch.1 (PKF/Baker Tilly)
Banks & financial institutions
30%PKF; Baker Tilly
General (non-life) insurance
30%PKF; Baker Tilly
Petroleum
30%PKF; Baker Tilly
Cigarettes/tobacco/cigars/pan masala/alcohol/beer
30%PKF; Baker Tilly
Telecom & internet service providers
30%PKF; Baker Tilly
Money transfer; capital market/securities/merchant banking/broker
30%PKF; Baker Tilly
Special industries (Section 11)
Effective 20% (25% less a 20% rebate)Income Tax Act 2058 s.11 (actNepal)
Listed shares — resident entity (capital gains)
10%Income Tax Act 2058 s.95Ka (PKF/Baker Tilly)
Land/building — non-individual (entity) capital gains
1.5%PKF; Baker Tilly
Annual return / instalment due dates
Advance tax due Poush end (40%), Chaitra end (70%), Ashad end (100%); Final return due Ashwin endIncome Tax Act 2058 s. 94 & 96
Export / SEZ / sector concessions beyond Sec 11
Startups (up to 100m turnover) exempt for 5 yrs; IT exports get 75% tax exemptionFinance Act 2083
IT Industry Bonus Shares
0% dividend tax on the capitalization of profits (bonus shares) issued by IT industriesFinance Act 2083
SEZ Rent Exemption
100% rent exemption for the first 3 years for new industries established in Special Economic ZonesFinance Act 2083
Tax Dispute Resolution (Waiver)
One-time settlement window: principal tax + 1% fee (waives penalties/interest)Finance Act 2083
R-NP-CT-1
Sector special computational regimes (banking provisioning, insurance, petroleum) — out of scope; escalate.Section 2 — Refusal catalogue
R-NP-CT-2
Special-industry / export / SEZ concessions beyond the headline Section 11 rebate — VERIFY against the Act; escalate.Section 2 — Refusal catalogue
R-NP-CT-3
Cross-skill. Personal → `nepal-income-tax`; TDS → `nepal-tds`; payroll/SSF → `nepal-payroll`; VAT → `nepal-vat`.Section 2 — Refusal catalogue
Normal rate
25%Income Tax Act 2058 Sch.1 (PKF/Baker Tilly)
Sector rate applicability
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 businessesIncome Tax Act 2058 (as amended by Finance Act 2082)
Special industries rebate mechanism
"Special industries" under Section 11 receive a 20% rebate on the normal rate, yielding an effective 20% (25% × 80%). Confirm eligibility under Section 11.Income Tax Act 2058 s.11
Listed shares disposed by a resident entity
10%
Land/building owned by a non-individual (entity)
1.5%
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.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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.
Reviewed against the cited tax authorities by Ashish Bista on 2026-06-06. Items flagged for further clarification are tracked separately and excluded here.
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 |
nepal-income-tax; TDS → nepal-tds; payroll/SSF → nepal-payroll; VAT → nepal-vat. (Section 2 — Refusal catalogue)Rates are unchanged from FY 2024-25. Source: PKF Trunco; Baker Tilly; actNepal (Section 11 mechanism).
(Individual rates are in nepal-income-tax / a CGT context.)
Research-grade, FY 2082/83. Secondary firm publications — re-anchor to primary IRD/statute:
Known gaps / VERIFY: primary citations; full special-industry / export / SEZ concession schedule; annual return due dates.
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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