Income Tax Rate in Nepal

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Income Tax Rate in Nepal

Here is new Income Tax Rate in Nepal. It is according to the budget announcement for the fiscal year 2079/080.


Income Tax Rate in Nepal



The income tax slab for the unmarried Nepali resident is as follow.



Annual IncomeIncome Tax Rate ( 2079/080)
Up to Rs. 5 lakhs1%
Rs. 5 lakhs to 7 lakhs10 %
Rs. 7 lakhs to 8 lakhs20%
Rs. 8 lakhs to 15 lakhs30 %
Above 15 lakhs36 %

Income Tax for the married couple

Married couples get one lakh more in the tax threshold. The detail of the income tax rate for the married couple in the fiscal year 2079/080 is as follow.



Annual IncomeIncome Tax Rate ( 2079/080)
Up to Rs. 6 lakhs1%
Rs. 6 lakhs to 8 lakhs10 %
Rs. 8 lakhs to 9 lakhs20%
Rs. 9 lakhs to 15 lakhs30 %
Above 15 lakhs36 %

This income tax rate was not reviewed in the past fiscal year. This year government has increased the salary for the civil servants by 15 percent. This rise in salary will automatically increase the annual income of tax payer. Hence to save them from high income tax rate it is reviewed this year.

Budget Details

Tax Rate for Non Resident People

Income earned from normal transactions25%
Income earned providing shipping, air transport or telecom services, postage, satellite and optical fiber project                                                                                  5%
Income earned providing shipping, air transport or telecom services within the territory of Nepal2%
Repatriation of profit by Foreign Permanent Establishment 5%

In the budgets of the fiscal year 2079/080 there are several area getting tax discounts. Government has announced such facility for the pandemic affected industries.

The details about it are available in the budget announcement. Similarly the official page of Inland Revenue will provide more information about tax system in Nepal.

Finally if you have any question about the income tax systems in Nepal leave your question in the comment box below. Our team will reply it within one working day.