Overview
The Honourable Finance Minister presented the federal budget for fiscal year 2081/82 with several important tax amendments. Here are the five changes that will have the greatest impact on businesses operating in Nepal.
1. Corporate Tax Rate Adjustment
The standard corporate tax rate remains at 25%, but new incentives have been introduced for manufacturing entities investing in renewable energy.
2. VAT Threshold Increase
The annual turnover threshold for mandatory VAT registration has been increased from NPR 50 lakhs to NPR 1 crore.
3. Digital Services Tax
A new 2% digital services tax applies to foreign digital service providers with revenue from Nepal exceeding NPR 2 crore annually.