Nepal tax guides

Nepal tax guide 2083/84: VAT, TDS, income tax, excise and the IRD's rules

Last checked 27 October 2026 (10 Kartik 2083). By Black Rock, the maker of BRAccount.

Nepal's Inland Revenue Department (आन्तरिक राजस्व विभाग, IRD) collects value added tax, income tax with its withholding (TDS) and advance tax, excise duty, and the fees of the yearly Finance Act. In fiscal year 2083/84, from 1 Shrawan 2083 to 32 Asar 2084 (17 July 2026 to 16 July 2027), VAT is 13%, companies pay 25% or 30% income tax, individuals 1% to 29%, and most returns are due within 25 days of the end of each Nepali month. These guides set out every rule with its section of the law, read page by page from the Acts and Rules the IRD publishes and from the Finance Act 2083.

The short version

VAT: 13%; 5% on ride-sharing transport and on electricity to final consumers; 0% on exports. Register above Rs 50 lakh (goods) or Rs 30 lakh (services) of turnover.
TDS: 15% general rate; 1.5% on service fees to a VAT-registered payee and on contracts above Rs 50,000; 10% on rent; 5% on dividends.
Income tax 2083/84: individuals and couples 1% to Rs 10 lakh, then 10%, 20%, 27%, and 29% above Rs 40 lakh; companies 25%; banks, insurers, telecom, tobacco, liquor and petroleum 30%.
Every month: VAT, TDS, excise and the luxury and skill fees are due within 25 days of the Nepali month's end.
Advance tax: 40% by the end of Poush, 70% by the end of Chaitra, 100% by the end of Asar. The 2083/84 return: by 30 Ashwin 2084 (16 October 2027).
Late: 15% a year interest on unpaid tax; VAT adds a 10% a year fee; most late returns cost Rs 1,000 or more.
Amnesty: arrears paid with 1% by 30 Poush 2083 (14 January 2027) waive interest, fees and fines.

The guides

VAT in Nepal: rates, the exempt list, registration, tax invoices, input credit, reverse charge, returns, refunds and fines.
TDS in Nepal: the full rate chart, final withholding, deposit and certificate deadlines, late charges and TDS on salaries.
Income tax in Nepal: the 2083/84 slabs, deductions, company rates, small taxpayers, capital gains, advance tax, returns, expenses and depreciation.
Excise duty in Nepal: who charges it, the 2083 schedule's domestic rates, the health risk tax, returns, licences and the liquor rules.
Finance Act 2083: every tax change for 2083/84, the new levies and the amnesties.
Tax calendar 2083/84: every deadline of the year, in Bikram Sambat and AD.
Penalties and appeals: what each late return or payment costs, fixed fines, administrative review and the Revenue Tribunal.
Taxpayer incentive gift programme: the IRD's prize for bills entered at prize.ird.gov.np.
IRD billing software guide: the Electronic Billing Procedure 2082, CBMS and what a bill must show.

Nepal's taxes at a glance, 2083/84

Tax	Rate	Who pays or collects	Return and payment	Law
VAT	13%; 5% ride-sharing transport and electricity to final consumers; 0% exports	Registered businesses, on their invoices	Monthly, within 25 days	VAT Act 2052, VAT Rules 2053
Income tax: individuals	1%, 10%, 20%, 27%, 29%	Residents, on the year's income	Return within three months of the year's end	Income Tax Act 2058, Finance Act 2083
Income tax: companies	25%; 30% for banks, insurers, telecom, tobacco, liquor and petroleum	Companies and other entities	Three instalments, then the return	Income Tax Act 2058 Schedule 1
TDS	15% general; 1.5%, 5%, 6%, 10% and others by payment	The payer, from the payment	Monthly, within 25 days	Income Tax Act s87-s92
Excise duty	By the schedule: per litre, per 1,000 sticks, per kg or a percentage	Producers, on their invoices; customs on imports	Monthly, within 25 days	Excise Act 2058, Finance Act 2083
Health risk tax	Rs 0.30-0.60 a stick, 10% on heated tobacco, Rs 30 a vape	Tobacco and nicotine producers and importers	With the excise	Finance Act 2083
Luxury fee	2%	Five-star hotels and luxury resorts	Monthly, within 25 days	Finance Act 2083 Schedule 5
Skill promotion fee	0.5%	Jewellers selling gold and silver	Monthly, within 25 days	Schedule 6
Education and health equity fees	3%	Private schools, colleges and health providers	Every four months	Schedules 7-8

Rates, thresholds and exceptions in full are in each guide.

Which taxes apply to a business

A PAN before earning income or withholding tax. A purchase bill above Rs 2,000 without the supplier's PAN is not deductible (PAN and TDS).
VAT registration within 30 days once twelve months' purchases or sales pass Rs 50 lakh for goods or Rs 30 lakh for services; below that it is voluntary (VAT registration).
TDS whenever it pays salaries, rent, service fees, contract payments, interest or dividends (TDS).
Income tax on the year's profit, paid in advance in three instalments (advance tax); a small resident trader may choose a fixed or turnover tax instead (small taxpayers).
Excise only on excisable goods it produces or imports (excise).
Sector levies for hotels and resorts, jewellers, private schools and health providers, telecom operators and others (levies).

The fiscal year and the Nepali calendar

Nepal's fiscal year runs from 1 Shrawan to the last day of Asar in the Bikram Sambat calendar; 2083/84 runs from 17 July 2026 to 16 July 2027. Nepali months are 29 to 32 days long and the tax laws set every deadline as a day of a Nepali month, so each falls on a different English date every year. The tax calendar converts all of them.

The Inland Revenue Department

The IRD, under the Ministry of Finance, administers VAT, income tax, excise and the Finance Act's fees; customs duty is the Department of Customs'. Its offices are the Large Taxpayer Office, the Medium Level Taxpayer Offices and the Inland Revenue Offices across the country. Returns are filed online through the IRD's taxpayer portal, and the electronic bills of larger businesses reach its Central Billing Monitoring System (CBMS) as they are issued.

Head office: Lazimpat, Kathmandu
Website: ird.gov.np
Email: serviceird@ird.gov.np
Phone: 01-5970081
Office hours: Monday to Friday, 9:00 to 5:00; 9:00 to 4:00 from 16 Kartik to 15 Magh; closed on public holidays

How these guides are written

Each guide comes from the laws themselves, read page by page as the IRD publishes them: the VAT Act 2052 and VAT Rules 2053 (27th amendment), the Income Tax Act 2058 and Income Tax Rules 2059 (16th amendment), the Excise Act 2058 and Excise Rules 2059 (27th amendment), the Liquor Act 2031 and Liquor Rules 2033, the Revenue Tribunal Act 2031 and Rules 2030, and the Finance Act 2083 as printed in the Nepal Gazette. Every figure carries its section so it can be checked.

Black Rock wrote them while building the same rules into BRAccount, its accounting software for Nepal. They are general information, not tax advice: a tax office or adviser should confirm how a rule applies to a particular case.

Questions

What taxes does the Inland Revenue Department collect?

VAT, income tax (with TDS and advance tax), excise duty, and the fees set by the yearly Finance Act, such as the luxury fee and the education and health equity fees. Customs duty is collected by the Department of Customs.

What is the VAT rate in Nepal in 2083/84?

13% on most goods and services. Since the Finance Act 2083, transport and freight through a ride-sharing platform and electricity sold to final consumers are taxed at 5%; exports are zero-rated and the Schedule 1 list is exempt.

What is the corporate tax rate in Nepal?

25% for most companies. Banks, financial institutions, insurers, telecom and internet providers, money transfer and capital-market businesses, and tobacco, liquor and petroleum businesses pay 30%.

What are Nepal's income tax slabs for 2083/84?

For a resident individual or couple: 1% up to Rs 10 lakh, 10% to Rs 15 lakh, 20% to Rs 25 lakh, 27% to Rs 40 lakh and 29% above Rs 40 lakh (Finance Act 2083).

When are VAT and TDS due in Nepal?

Within 25 days of the end of each Nepali month, with the return or statement. Kartik 2083's are due by 25 Mangsir 2083 (11 December 2026).

When does fiscal year 2083/84 start and end?

On 1 Shrawan 2083 (17 July 2026) and 32 Asar 2084 (16 July 2027).

What does paying tax late cost in Nepal?

15% a year interest on the unpaid tax, counted by the month; VAT adds a 10% a year fee. Late returns have their own fines, usually at least Rs 1,000.

Where are Nepal's tax laws published?

On the IRD's website, ird.gov.np, which lists every Act, Rule, Finance Act and directive by category. Each guide here links to the page it was read from.

Sources

IRD billing software guide Request access