Amendments by Finance Ordinance 2072/73

Amendments by Finance Ordinance, 2072/73

1.

Special Provision for taxpayer submitting Presumptive Tax (Clause 21): Replaced
Small taxpayer who submit presumptive tax return whose business is completely destroyed
by earthquake in district receiving relief material and certified by District Natural District
Rescue Committee, shall be relieved from income tax and house rent tax on filing tax return
for F/Y 2071-72 along with such certification. Excise duty renewal fees shall also be waived
for F/Y 2072-73 for such taxpayer.

2.

Special Provisions for waiver of outstanding tax (Clause 22): Replaced

Out of outstanding Hotel Tax, Entertainment tax, contractual tax which were replaced by
Income tax according to Income tax Act 2058, VAT according to Value Added tax 2052 and
outstanding tax as record (nut) upto Ashad end 2060 under Sales Tax Act, NRs 20,000 per
record (nut) and penalties and interest on it shall be waived.

Income Tax Act, 2058

1.

Provision related to tax amount (Section 4): Inserted

Subsection (4) Gha: Not registered in VAT (condition for tax to be paid equal to the amount
at the rate in Schedule-1 Section 1(7).
Subsection 4(Ka): Notwithstanding anything written in subsection (2) tax payment in any
fiscal year on basis of transaction for resident natural person pursuant to Section 3(Ka) shall
be equal to the amount calculated using rate mentioned in Subsection 17 Section 1 of
Schedule in following cases:
(a) the person only has income from business having source in Nepal for the fiscal year
(b) has not claimed medical tax credit pursuant to section 51
(c) has not claimed advance tax deduction pursuant to Section 93
(d) business transaction is between 20 lacs and 50 lacs annually
(e) not registered in VAT
(f) has not earned income as physician, engineer, auditor, law professional, athlete, actor,
consultant and other consultancy and expert service

2.

Exemptions (Section 11(3)): Inserted

Tax shall be levied on following rates to any person having income from Special Industries
and Information Technology Industry:
Ka1) 70% of the rate to be levied on Special Industry, agro-based industry, tourism related
industry providing year around direct employment to at least 100 nepali nationals.
3ka) Concession at the following rates shall be provided on dividend distributed by Industries
established in Special Economic Zone:
Nga) On dividend distributed by Special Industry, agro-based industry, tourism related
industry which capitalizes its accumulated profit for expansion of industry,100% concession
of dividend tax on such capitalization.

BRSNeupane&Co.
CharteredAccountants

Amendments by Finance Ordinance 2072/73

3.

Donation (Section 12): Inserted

12 Kha) Contribution made to Prime minister Disaster Relief Fund and reconstruction
Fund established by GoN: Contribution made to Prime minister Disaster Relief Fund and
reconstruction Fund established by GoN by any person during any income year shall be
allowed for deduction while assessing taxable income.

4.

Repair and maintenance (Section 16): Inserted:

(2) Notwithstanding anything contained in subsection 1, amount to be deducted according to
this section at the end of income year shall not exceed 7% of depreciable base but
(Kha) This provision shall not apply on repair and maintenance expenses incurred on assets
in district selected by GoN as earthquake affected area upto F/Y 2073/74 on option of
taxpayer.

5.

Characterization of Compensation payment (Section 31): Inserted

Following restrictive phrase has been added to Section 31(Kha)
(2) Compensation received for death of natural person shall not be included in income.

7.

Tax withheld at Source (Section 88): Inserted

(Ka5) tax shall be withheld at the rate of 1.5% for person involved in business of providing
vehicle for rent and is registered in VAT.

8.

Deposition of Withholding Tax (Section 90): Inserted

Subsection 4(Ka) has been added after Subsection (4): Notwithstanding anything contained
in subsection (4) {withheld tax to be deposited within 25 days} tax withheld shall be deposited
within Ashad end of current year for non-business house rent income of natural person and
tax withheld should be deposited at time of paying advance tax instalment according to
Chapter 17 for person involved in transaction in Section 4(4Ka)

9.

Payment of Income Tax by installment (Section 94): Inserted

Subsection 1(ka) has been added after subsection 1
1(ka) Pesron paying tax on basis of transaction shall pay tax in two installment:
Due date for deposition

Amount to be deposited

Upto Poush end

Tax amount at prescribed rate on transaction upto

Poush 20
Tax amount at prescribed rate on actual transaction upto
Ashad 20 minus tax paid on Poush end

End of Ashad

BRSNeupane&Co.
CharteredAccountants

Amendments by Finance Ordinance 2072/73

Changes to Schedule -1
Of Income Tax Act, 2058
Tax Rates
1.

Social Security tax applicable under Section 1- Inserted

Social security tax not to be levied on income pension income

1.

Presumptive tax applicable under section 4.13 of this Act- Amended

Following shall be the presumptive tax applicable under Section 4.13 of this Act.
a. NRs. 3,000 for minibus, mini-truck, truck and bus
b. NRs. 2,400 for Car, Jeep, Van and Microbus
c. NRs. 1,550 for Three-wheeler, Auto-rickshaw and tempo
d. NRs. 1,000 for Tractor and Power Tiller

2.

Medical Insurance: Inserted

Notwithstanding anything mentioned in this section, if any payment is made to resident
insurance company by any natural person, then such payment or NRs. 20,000 whichever is
lower shall be allowed for deduction while calculating taxable income according to this
section.

3.

Tax at following rates shall be levied on transaction pursuant to Section 4 (4ka):

a. For person involved in transaction of gas, cigarette along with goods traded with additional
3% commission or price 0.5% of transaction amount
b. For person involved in business except for business mentioned in (a), 1.5% of transaction
amount
c. For person involved in service business, 2% of transaction amount

Value Added Tax Act, 2052

1.

Provision for Bank Guarantee (Section 8)-Amended

(Ka1) Industry exporting more than 40% (previously more than 60%) of the total sales of
last 12 months shall be availed with the facility of importing the raw material required for
such export by furnishing bank guarantee during such tax payable on such import.
(Ka5) Person availing the import under bank guarantee shall not be able to claim refund of
excess tax if the sales during any month exceeds 40%.-Deleted

2.

Exemption for small entrepreneur (Section 9): Amended

Provided that any person other than presumptive tax payer as per Section 4 (4) of Income Tax
Act, 2052 may voluntarily apply for the registration. (Previously anyone could apply for
voluntary registration.

3.

Registration (Section 10): Deleted

Subsection 2(a) Person involved in business of brick production and transaction, wine
distributors, Wine shop, software, trekking, rafting, ultra-light flight, paragliding, tourist

BRSNeupane&Co.
CharteredAccountants

Amendments by Finance Ordinance 2072/73

vehicle, stone crushing, slate and stone industry are required to be register under VAT within
30 days of operation of the business.
Subsection 2(b) Person conducting business of hardware, sanitary , furniture , furnishing,
automobiles, motor parts, electronics, marble, educational consultancy, Disco The que,
catering service, health club, party palace, parking service, dry cleaners using machinery
equipment , restaurant with bar, and color lab, boutique, tailoring business along with suiting
and shirting, education institution or medical institutions or business of preparing uniform for
other organizations and ice-cream industry in a metropolis, sub metropolis or a municipality
or place specified by IRD are required to be register under VAT within 30 days of operation
of the business.
4.

Special provision for Temporary Registration (Section 10 Kha): Inserted

(1) Joint venture business established by two or more persons for specified time period should
be registered for temporary purpose.
(2) Joint venture established pursuant to Subsection (1) should be deregistered after expiry of
the specified time period.

Excise Act, 2052

1.

Restriction on Sales and Distribution (Section 4 Gha): Inserted

(2) Except for hotel and restaurant business, person involved in transaction of tobacco and alcoholic
product within metropolitan, sub metropolitan, municipality and area specified by department shall
be restricted to do such business only.
However, departmental stores can conduct such transaction through separate sales room for alcoholic
substance.

BRSNeupane&Co.
CharteredAccountants

Amendments by Finance Ordinance 2072/73

A.

Tax rates for Natural Person

A.1

Income Tax rate for Individual

S.N. Particulars

2069
70NRs.

2070
2071
71NRs. 72NRs.

2072
73NRs.

1.

160,000

200,000

250,000

250,000

1%

1%

1%

1%

Next NRs. 100,000

15%

15%

15%

15%

Balance Amount

25%

25%

25%

25%

10%

10%

10%

10%

Basic Tax Exemption limit to individual

-Tax Rates
Social Security Tax (except for income from
pension)

Additional tax:
If taxable income is more than NRs. 2,500,000
(40% tax on tax amount calculated under the
slab of 25% tax rate beyond 25 lacs)

A.2 Income Tax rate for Couple

S.N. Particulars
1.

Basic Tax Exemption limit to individual

-Tax Rates
Social Security Tax (except for income from
pension)

2070
2071
71NRs. 72NRs.
250,000 300,000

2072
73NRs.
300,000

1%

1%

1%

1%

Next NRs. 100,000

15%

15%

15%

15%

Balance Amount

25%

25%

25%

25%

10%

10%

10%

10%

Additional tax:
If taxable income is more than NRs. 2,500,000
(40% tax on tax amount calculated under the
slab of 25% tax rate beyond 25 lacs)

2069
70NRs.
200,000

Note:Compensation received for death of natural person shall not be included in income

A.3

Special provisions applicable for individual and couple

BRSNeupane&Co.
CharteredAccountants

Amendments by Finance Ordinance 2072/73

A.3

Special provisions applicable for individual and couple

S.N. Particulars
1.
Resident natural Person having pension income included in the
taxable income shall be entitled to deduct from taxable income

2.

2069-70 NRs.
Lower of 25%
of basic exemption
limit or pension
income
50% of basic
exemption limit
10%

2070-71 NRs.
Lower of 25%
of basic exemption
limit or pension
income
50% of basic
exemption limit
10%

2071-72 NRs.
Lower of 25%
of basic exemption
limit or pension
income
50% of basic
exemption limit
10%

2072-73 NRs.
Lower of 25%
of basic exemption
limit or pension
income
50% of basic
exemption limit
10%

75% deduction
allowed
Paid Premium
amount or NRs
20,000 whichever
is lower
Taxable

75% deduction
allowed
Paid Premium
amount or NRs
20,000 whichever
is lower
Taxable

75% deduction
allowed
Paid Premium
amount or NRs
20,000 whichever
is lower
Taxable

Up to NRs.50,000

Up to NRs.50,000

75% deduction
allowed
Paid Premium
amount or NRs
20,000 whichever
is lower
Paid Premium
amount or NRs
20,000 whichever
is lower
Up to NRs.50,000

5.

Incapacitated resident natural person shall be entitled to get

deduction from taxable income
Tax rebate has been provided to the women who have
remuneration income only.(Not opting for couple status)
Foreign Allowance for Nepalese staff working in diplomatic
sector
Life insurance premium deduction on taxable income

6.

Medical Insurance Premium deduction on taxable income

7.

Remote allowance reduction for 5 class of remote area

Up to NRs.50,000
specified by IRD
Tax rate applicable to natural person conducting special
20%
industries during the whole income year, where applicable rate
is 25%
Tax rate applicable to income earned by natural person from
15%
export, where applicable rate is 25%
Non-resident natural person
25%

3.
4.

8.

9.
9.

20%

20%

20%

15%

15%

15%

25%

25%

25%

*Medical tax credit is available to resident natural persons as deduction from tax liabilities. The limit prescribed is Rs.750 or 15% of Approved medical expense or actual
approved medical expense incurred whichever is lower. Any unutilized expenses can be carried forward to next year.

BRSNeupane&Co.
CharteredAccountants

Amendments by Finance Ordinance 2072/73

B.

Corporate Tax Rates for Entity

B.1

For financial institution

S.N. Particulars
1.
2

B.2

Bank, Financial Institutions, or General Insurance Business

Co-operative Society established under Co-operative Act,
2048 conducting other than those tax exempt transactions

206970
NRs.
30%
20%

207071NRs.

207172NRs.

30%
20%

30%
20%

207273
NRs.
30%
20%

Special Industries
S.N. Particulars
1.

3
4

206970NRs. 207071NRs.

Special Industry, Entity engaged in the

construction of road, bridge, tunnel, ropeway, or flying bridge,
operation of any trolley bus, or train
Projects (building of public infrastructure, own operate and
transfer to HMG), Power Generation, transmission, or
distribution
Any Entity operating as special Industry in whole year as per
Section11 of Income Tax Act 2058
Special industry and IT industry providing direct employment
to 300 or more Nepali citizens

Special Industry Providing direct employment to 1200 or

more Nepali Citizen

Special industry providing direct employment to 100 or more

Nepali citizen
including women, dalits and disabled in the proportion of 33%
Special industry operating in following regions have
following tax rates for first 10 years:
a. Remote Regions

BRSNeupane&Co.
CharteredAccountants

20%

20%

207172
NRs.
20%

20%

20%

20%

20%

20%

20%

20%

20%

90% of the
applicable tax
rate (i.e. 18%)
80% of the
applicable tax
rate (i.e. 16%)
80% of the
applicable tax
rate (i.e. 16%)

90% of the
applicable tax
rate (i.e. 18%)
80% of the
applicable tax
rate (i.e. 16%)
80% of the
applicable tax
rate (i.e. 16%)

90% of the
applicable tax
rate (i.e. 18%)
80% of the
applicable tax
rate (i.e. 16%)
80% of the
applicable tax
rate (i.e. 16%)

90% of the
applicable tax
rate (i.e. 18%)
80% of the
applicable tax
rate (i.e. 16%)
80% of the
applicable tax
rate (i.e. 16%)

207273
NRs.
20%

Amendments by Finance Ordinance 2072/73

B.3

b. Underdeveloped Regions

10% of the
applicable tax
rate (i.e. 2%)

10% of the
applicable tax
rate (i.e. 2%)

10% of the
applicable tax
rate (i.e. 2%)

10% of the
applicable tax
rate (i.e. 2%)

c. Undeveloped Regions

20% of the
applicable tax
rate (i.e. 4%)

20% of the
applicable tax
rate (i.e. 4%)

20% of the
applicable tax
rate (i.e. 4%)

20% of the
applicable tax
rate (i.e. 4%)

30% of the
applicable tax
rate (i.e. 6%)
20%

30% of the
applicable tax
rate (i.e. 6%)
20%

30% of the
applicable tax
rate (i.e. 6%)
20%

30% of the
applicable tax
rate (i.e. 6%)
70% of
applicable rate
(i.e. 14%)

206970NRs.
30%

207071NRs.
30%

207172NRs.
30%

207273 NRs.
30%

30%

30%

30%

30%

25%
20%

25%
20%

25%
20%

25%
20%

2069-70 NRs.

2070-71 NRs.

2071-72 NRs.

2072-73 NRs.

Tax exempt

Tax exempt

Special Industry, agro-based industry, tourism related

industry providing year around direct employment to at
least 100 nepali nationals.

General Provisions for entity

S.N. Particulars
1.
Entities producing cigarette, bidi, cigar, tobacco, khaini,
liquor, beer
2
Entity engaged in petroleum operations under the Nepal
Petroleum Act, 1983
3
Other firms, companies
4
Taxable income of an entity having source in Nepal earned
from export

B.4

Concession tax rate for entity

S.N. Particulars
1.
Industries established in Special Economic Zone situated in
mountainous districts and hilly districts prescribed by Nepal
Government
-For first 10 years

Tax exempt

Tax exempt

-After such period

BRSNeupane&Co.
CharteredAccountants

Amendments by Finance Ordinance 2072/73

50% of the
applicable tax
rate
2

Industries established in Special Economic Zone situated in

other regions
Tax exempt
-For first 5 years
50% of the
applicable tax
-After such period
rate
Income from Foreign technology and management service 50% of the
fee and royalty of Foreign investor in Special Economic Zone applicable tax
rate (i.e. 7.5%)

Tax exempt
for
first 7 years
and 50% of
applicable rate
on subsequent
3 years
Tax exempt
for

Tax exempt
for
first 7 years
and 50% of
applicable rate
on subsequent
3 years
Tax exempt
for

Brandy based on fruits, cider and wine

manufacturers in undeveloped area

Entities (Manufacturing, Tourism, Hydro

electricity production, distribution and transmission, IT
industry established within IT Park, biotech park and
technology park as specified in the Gazette) listed in
Securities Market
Person involved in exploration & extraction of petroleum and Tax exempt for
natural gases, will start its operation within Chaitra end 2075 first 7 years and
50%
of
applicable rate
on subsequent 3
years
Person having license to generate, transmit and distribute Tax exempt for
electricity will be allowed if the commercial electricity

BRSNeupane&Co.
CharteredAccountants

50% of the
applicable tax
rate

Tax exempt
50% of the
applicable tax
rate
50% of the
applicable tax
rate (i.e.
7.5%)
50% tax
rebate on
applicable tax
rate
40% tax
rebate
on applicable
tax rate for
period of 10
years
90% of the
applicable tax
rate
(i.e.
22.5%)

IT industry established within IT Park, biotech park and

technology park as specified in the Gazette

50% of the
applicable tax
rate

Tax exempt
50% of the
applicable tax
rate
50% of the
applicable tax
rate (i.e.
7.5%)
50% tax rebate 50% tax rebate 50% tax
on applicable
on applicable
rebate on
tax rate
tax rate
applicable tax
rate
40% tax rebate 40% tax rebate 40% tax
rebate
on applicable
on applicable
on applicable
tax rate for
tax rate for
tax rate for
period of 10
period of 10
period of 10
years
years
years
90% of the 90% of the 90% of the
applicable tax applicable tax applicable tax
rate (i.e. 22.5%) rate (i.e. 22.5%) rate
(i.e.
22.5%)

50% of the
applicable tax
rate

Tax exempt
50% of the
applicable tax
rate
50% of the
applicable tax
rate (i.e. 7.5%)

Tax exempt for

first 7 years and
50%
of
applicable rate
on subsequent 3
years
Tax exempt for

Amendments by Finance Ordinance 2072/73

10

11

12

13

14

generation, generation and transmission, generation and first 7 years and

distribution or generation, transmission, distribution 50%
of
commences before Chaitra end 2075
applicable rate
on subsequent 3
years
Hydroelectricity project initiating construction within 07 Tax exempt for
Bhadra, 2071 if started commercial production within Chaitra first 10 years
2075
Income earned by manufacturing industries
25%
through export sales
concession on
applicable rate
Income earned from Road, Bridge, Airport, tunnel way 40%
construction and operation or from tram and trolleybus concession on
operation
applicable rate
Royalty income earned from export of
25%
intellectual assets
concession on
applicable rate
Income earned from disposal of intellectual property
50%
concession on
applicable rate
Special industry with capital investment of more than 1 N/A
billion and (1 Arab) providing direct employment to more
than 500 Nepali throughout the year.

first 7 years and

50%
of
applicable rate
on subsequent 3
years
Tax exempt for
first 10 years
25%
concession on
applicable rate
40%
concession on
applicable rate
25%
concession on
applicable rate
50%
concession on
applicable rate
N/A

if the capital requirement is met by increasing present

capacity by 25%

BRSNeupane&Co.
CharteredAccountants

10

first 7 years
and 50% of
applicable rate
on subsequent
3 years
Tax exempt
for
first 10 years
25%
concession on
applicable rate
40%
concession on
applicable rate
25%
concession on
applicable rate
50%
concession on
applicable rate
Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years

first 7 years
and 50% of
applicable rate
on subsequent
3 years
Tax exempt
for
first 10 years
25%
concession on
applicable rate
40%
concession on
applicable rate
25%
concession on
applicable rate
50%
concession on
applicable rate
Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years

Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years
on
increased
income

Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years
on
increased
income

Amendments by Finance Ordinance 2072/73

15

Industry related to the tourism sector and Airways industry N/A

involved in international flights investing more than 2 billion

N/A

if the capital requirement is met by increasing present

capacity by 25%

16

Special Industry, agro-based industry and tourism related industry

Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years

Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years

Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years
on
increased
income
-

Full
tax
exemption for
first 5 years
and 50% of
applicable tax
rate for next 3
years
on
increased
income
100%
concession of
dividend tax
on
such
capitalization

2072-73 NRs.
5% on
turnover
2% on
turnover

if accumulated profit is capitalized for expansion of industry

B.5

Rate for non-resident person

S.N. Particulars
1.
Non-Residents Providing Shipping, Air
Transport or Telecommunication Services
2
Non-Residents Providing Shipping, Air
Transport or Telecommunication Services
within the Nepal
3
Repatriation of income by Foreign Permanent Establishment
4
Natural person with transaction between 20 to 50 lacs
annually and not registered in VAT and other provisions
mentioned in Section 4(Ka)

BRSNeupane&Co.
CharteredAccountants

2069-70 NRs.
5% on
turnover
2% on
turnover

2070-71 NRs.
5% on turnover

2071-72 NRs.
5% on turnover

2% on turnover

2% on turnover

5%
25% of profit

5%
25% of profit

5%
25% of profit

11

5%

Amendments by Finance Ordinance 2072/73

-For person involved in transaction of gas, cigarette

0.5% on
turnover

along with goods traded with additional 3% commission

or price
-For person involved in business except for business
mentioned above
- For person involved in service business

1.5% of
turnover
2% of
turnover
(minimum of
NRs. 5,000 in
each case)

B.6

TDS rates
Section

Type of Payment

87(1)

Income from employment

88(1)

88(3)

88(1)

2070-71 NRs.

2071-72 NRs.

2072-73 NRs.

Final or
Advance
Final (if
employment
tax only)
Advance

As per section
1 and 2 of
Schedule 2
Payment of natural resource, royalty, service fee,
15%
commission, sales bonus, retirement payments and other
return except other rate stated in this table
5%
Payment of interest having source in Nepal to natural
person not involved in any business activity by resident
Bank, financial institutions or debenture issuing entity, or
listed company on deposit, bond, debenture or government
bond
Other Interest payment:

As per section
1 and 2 of
Schedule 2
15%

As per section
1 and 2 of
Schedule 2
15%

5%

5%

Final

-Tax exempt entity as per Section 2(Dha)

15%

15%

15%

Final

-Others

15%

15%

15%

Advance

BRSNeupane&Co.
CharteredAccountants

12

Amendments by Finance Ordinance 2072/73

88(1)
88(1)
(1)

88(2)
Ga
88(1)
(2)
88(1)
(3)
88 (1)
(4)

88(1)
(5)

88(1)
(5)
88 Ka
(5)
88(1)
(6)
88(2)
(ka)
88(2)
Kha
88 (4)
Ka
88 (4)
Ka 1
88(4)
Kha

Meeting allowances, periodic/part time teaching to natural

person
Retirement payment made by government of Nepal or
retirement payment from approved retirement fund after
reduction higher of NRs. 500,000.00 or 50% of total
payment
Gain on payment from unapproved retirement fund

15%

15%

15%

Final

5%

5%

5%

Final (except
for regular
pension)

5%

5%

5%

Final

Commission paid by resident employer company to nonresident person

Lease rental payment

5%

5%

5%

Final

10%

10%

10%

Final

Service fee paid to VAT registered service provider person

and Service provider entity of Vat exempt goods

1.5%

1.5%

1.5%

Rent for the lease of land or a building and associated

fittings and fixtures, having source in Nepal, and that is
received by an individual other than in conducting
business
Rent having source in Nepal

10%

10%

10%

Final (Vat
exempt good
added this
year)
Final

10%

10%

10%

Advance

Payment of rent on vehicle hire for person involved in

business of providing vehicle on hire
Payment of return to natural person by
mutual fund
Dividend

1.5%

5%

5%

5%

Final

5%

5%

5%

Final

Gain on investment (life) insurance

5%

5%

5%

Final

Payment made by natural person other than conducting

business activity or other payments other than rent
Payment for setting exam paper, for checking answer
paper and for a writing up in newspaper
Interest to resident bank or financial institutions

Nil

Nil

Nil

N/A

Nil

Nil

Nil

N/A

Nil

Nil

Nil

N/A

BRSNeupane&Co.
CharteredAccountants

13

Amendments by Finance Ordinance 2072/73

88(4)
Ga
88(4)
Gha
88(4)
Chha

Tax exempt payments

Nil

Nil

Nil

N/A

Inter-regional/interchange fee payable to the bank issuing

credit card
Payment to Mutual fund for:

Nil

Nil

Nil

N/A

Nil
Nil

Nil
Nil

Nil
Nil

25%

25%

25%

Advance

1.5%

1.5%

1.5%

Advance

5%

5%

5%

Final

1.5%

1.5%

1.5%

Final

Aspernotice
ofIRD
10%

Aspernotice
ofIRD
10%

Aspernotice
ofIRD
10%

Final

5%
Nil
10%

5%
Nil
10%

5%
Nil
10%

10%
Nil
15%

10%
Nil
15%

10%
Nil
15%

-Interest

88 Ka

89(1)

89 (3)
Ka
89 (3)
Kha
89 (3)
Ga
95 Ka
(1)
95 Ka
(2)Ka

95 Ka
(2)Kha

95 Ka
(3)

-Dividend
Windfall gain (except for payment up to NRs 5 lacs
relating to national and international level awards for
literature, art, culture, sports, journalism, science,
technology and public administration)
Payment of a contractual amount in excess of Rs.
50,000.00 (the same payment under same contract within
last 10 days to be considered)
Contract payments made by resident person to nonresident persons for repair of aircraft or other contracts
Payment of insurance premium made by resident person
to non-resident insurance company
Other contract payments made by resident person to nonresident persons
Gain on transaction in commodity future market
Gain on disposal of interest of a listed entity:
- Resident Natural Person
- Mutual fund
- Others.
Gain on disposal of interest of a unlisted entity:
- Resident Natural Person
- Mutual fund
- Others.
Capital Gain on Disposal of Non-business chargeable
assets (land / and building) of a natural person:
- Owned for less than 5 years
- Owned for more than 5 years but less than 10 years

Advance

Advance

Advance

Advance
5%
2.5%

5%
2.5%

BRSNeupane&Co.
CharteredAccountants

Advance

14

5%
2.5%

Amendments by Finance Ordinance 2072/73

C.

Presumptive Tax

S.N. Particulars
1.
Small and low income entrepreneurs having net income
less than NRs 2 Lac income and transactions less than
NRs 20 Lac transactions:
- Metropolis /Sub metropolis
- Municipality
- Others
2

Public Vehicle Owner

-Mini-bus, Mini-truck, Truck and Bus
-Car, Jeep, Van, Micro Bus
-Three Wheeler, Auto Rickshaw, Tempo
-Tractor and Power Tiller

2069-70 NRs.

2070-71 NRs.

2072-73 NRs.

3500
2000
1250

3500
2000
1250

5000
2500
1500

5000
2500
1500

1500
1200
850
750

1500
1200
850
750

1500
1200
850
750

3000
2400
1550
1000

BRSNeupane&Co.
CharteredAccountants

2071-72 NRs.

15