| Tax Slab |
Tax Rates |
||
| Individual |
2015-16 |
2014-15 |
2013-14 |
| (a) First Rs. 2,50,000 |
1% |
1% |
1% |
| (b) Next Rs. 1,00,000 |
15% |
15% |
15% |
| (c) Next Rs. 3,50,001 to Rs. 25,00,000 |
25% |
25% |
25% |
| (d) Balance Exceeding Rs. 25,00,000 |
35% |
35% |
35% |
| Couple |
|||
| (a) First Rs. 3,00,000 |
1% |
1% |
1% |
| (b) Next Rs. 1,00,000 |
15% |
15% |
15% |
| (c) Next Rs. 4,00,001 to Rs. 25,00,000 |
25% |
25% |
25% |
| (d) Balance Exceeding Rs. 25,00,000 |
35% |
35% |
35% |
| Nature of Transaction | Tax Rates | ||
| 2015-16 | 2014-15 | 2013-14 | |
| Income earned from normal transactions |
25% |
25% |
25% |
| Income earned providing shipping, air or telecom services, postage, satellite, optical fiber project. |
5% |
5% |
5% |
| Income earned providing shipping, air or telecom services through the territory of Nepal. |
2% |
2% |
25% |
| Repatriation of profit by Foreign Permanent Establishment |
5% |
5% |
5% |
| Particulars |
Tax Rates |
|
| 2015-16 | 2014-15 | |
| Income earned by natural person engaged
on special industry |
Tax @ 20% on taxable |
Tax @ 20% on taxable |
| Income earned from export by natural person |
Tax @ 15% on taxable |
Tax @ 15% on taxable |
| Income of trust |
Tax rate as applicable to |
Tax rate as applicable to |
Natural person those who meet following criteria shall be taxed on the basis of turnover as follows:
| Natural person engaged in |
Tax Rates 2015-16 |
| Gas, Cigarette business doing
transaction with 3% margin or |
0.5 % of |
| Other person except those involved in business as above (a) |
1.5 % of |
| Person engaged in service business
except doctor, engineer, auditor, layer, |
2 % of |
| Particulars |
Tax Rates |
||
| 2015-16 | 2014-15 | 2013-14 | |
| Normal Business |
25% |
25% |
25% |
| Entity operating Special Industry under
section 11 for whole year |
20%
|
20% |
20% |
| Banks and financial institutions
(Commercial Banks, Entity carrying General insurance business (Non
life |
30% |
30% |
30% |
Lowest Individual Tax Rate is 1 % and Highest Rate is 25%+40% of tax
Individuals
|
Taxable Income |
|
|
Upto 250,000 |
1% |
|
250,001 - 350,000 |
15% |
|
350,001 - 2,500,000 |
25% |
|
Over 250,000 |
25% + additional 40% of the tax such calculated |
Couple
|
Taxable Income |
|
|
Upto 300,000 |
1% |
|
300,001 - 400,000 |
15% |
|
400,001 - 2,500,000 |
25% |
|
Over 250,000 |
25% + additional 40% of the tax such calculated |
Note 1: Natural person working at remote
areas are entitled to get deduction from taxable income to a
maximum of Rs 50,000 to
minimum of Rs 10,000.
(A-50,000,B-40,000,C-30,000,D-20,000,E-10,000)
Note 2: Natural person with pension income included in the
taxable income shall be entitled to deduct from taxable income
an
additional 25% of amount prescribed under first tax slab.
Note 3: Incapacitated natural person shall be entitled to get
deduction from taxable income an additional 50% of amount
prescribed
under first tax slab.
Note 4: A natural person who has procured life insurance and
paid premium amount thereon shall be entitled to a deduction of
actual
annual insurance premium or Rs 20,000 whichever is less from
taxable income.
Note 5: In case of the employee employed at the foreign
diplomatic of Nepal only 25% of the foreign allowances are to be
included in
the income from salary.
Note 6: In case of individual women having only remuneration
income, they are allowed rebate of 10% on the tax liability
calculated as
other natural person. i.e. not applicable for women with couple
status.
Note 7: In case of decision of the organization to provide group
retirement to its employees (in the event of merger or
acquisition)
except to the payment made as per the employment term or the
payment made by retirement fund, a rebate of 50% on
withholding tax.
* This is the Social Security Tax to be deposited in a separate
revenue account (11211) provided for this purpose.
Non Residents
1. Income earned from normal transactions
25% flat rate
a) Income earned providing shipping, air or telecom services,
postage, satellite, optical fiber project. 5%
b) Income earned providing shipping, air or telecom services
through the territory of Nepal. 2%
c) Repatriation of profit by Foreign Permanent Establishment. 5%
Special provisions for Resident Natural
Person
a) Income earned by natural person engaged on special industry
under sec (11) Tax @ 20% on taxable income for which tax rate of
25% is applicable
b) Income earned from export by natural person Tax @ 15% on
taxable income for which tax rate of 25% is applicable
c) Income of trust Tax rate as per section 1 and 4 of Annex 1 of
Income tax act 2058 is applicable i.e. rate for natural person.
For Normal business Tax Rate is 25%
Tax Rate is 20% for the following
i Entity operated in special economic
zones under section (11)
ii Other entities involved in business of construction of roads,
bridges, tunnels, rope-ways, suspension bridges
iii Entity operating trolley bus or tramps iv On transactions of
cooperatives (other than tax exempted transactions) of
registered under Cooperative Act, 2048
v Entity those involved in construction or operation of public
infrastructure and to be transferred to Nepal Government or
involved in construction of hydropower house and its generation
and transmission.
Tax Rate is 30% for the following
i Banks and financial institutions
(Commercial Banks, Development Banks and Finance Companies)
ii Entity carrying General insurance business (Non life
Insurance)
iii Entity engaged in petroleum business under Nepal Petroleum
Act, 2040
iv Entity engaged in business of cigarette, tobacco, cigar,
chewing tobacco, alcohol and beer
Individual
Tax withholding on capital gain for natural person on
transaction exceeding Rs 3 million (to be made by Land revenue
office at the time of registration):
- disposal of land or land & building owned for more than 5
years 2.5%
- disposal of land or land & building owned for less than 5
years 5%
Corporate
Income from disposal of non-business
chargeable assets Included in Income
(Capital gain)