Nepali tax law has tightened markedly through the 2082 Finance Act — higher reporting frequency, stricter TDS coverage, mandatory PAN linkage, and active IRD audits make the compliance margin for error smaller every year. Alpine Law Associates handles tax compliance and advisory end-to-end for Nepali companies, foreign-invested firms, NRN clients, and high-net-worth individuals — monthly VAT and TDS, quarterly advance tax, annual income-tax return, capital-gains computation, DTAA claims for treaty-country clients, and full defence of IRD audits and disputes.
What does Alpine's tax compliance service cover?
Three tracks. Recurring compliance: monthly VAT (where registered, threshold NPR 50 lakh turnover / NPR 30 lakh for services), monthly TDS returns, quarterly advance tax instalments, annual income-tax return by Poush-end with audited accounts and tax computation under Sec. 96–97. Event-driven: capital-gains computation on property or share sales, dividend distribution tax, change-of-residency tax planning, transfer-pricing transactions. Strategic advisory: entity-choice tax efficiency, DTAA application for treaty-country clients, restructuring for tax-efficient succession, Finance Act 2082 budget-cycle impact assessment.
What are the current Nepal tax rates for FY 2082/83?
Individual income tax is progressive, starting at 1% Social Security Tax on the first NPR 5,00,000 (NPR 6,00,000 if married, joint filing), then 10% up to NPR 7,00,000, 20% on the next band, 30% above NPR 10,00,000, and 36% on the top slab above NPR 50,00,000. Corporate income-tax rate is 25% standard, with 30% for banks, insurance, tobacco, alcohol; reduced rates for special industries. Capital-gains tax on property is 5% long-term (held >5 years) or 7.5% short-term for individuals. Dividend tax is 5% for residents; 25% for non-residents subject to DTAA reduction.
How does TDS work for businesses in Nepal?
Tax Deducted at Source under Income Tax Act 2058 Sec. 87–95 makes the payer responsible for withholding tax on specified payments before remitting to the IRD monthly. Common rates: salary per individual slab, house rent 10%, professional services / consultancy 15%, dividend 5% (resident) / 25% (non-resident), interest on deposits 5–15%, royalty 15%, contractual works 1.5%. Non-PAN payees attract higher rate (typically 1.5×). Failure to deduct or remit shifts the underlying tax liability to the payer, plus 0.05%/day interest and penalty under Sec. 119. Alpine handles TDS structure design, monthly returns, and reconciliation with payee PAN records.
What is DTAA and how does it apply to NRN or FDI clients?
Double Tax Avoidance Agreements (DTAA) under Article 2 of Nepal's bilateral tax treaties prevent the same income being taxed by both Nepal and the treaty partner. Nepal has DTAAs in force with India, China, Thailand, South Korea, Sri Lanka, Pakistan, Mauritius, Norway, Bangladesh, Qatar, Austria, and a handful of others. For NRN clients in treaty countries, dividend, interest, and royalty income from Nepal can be taxed at reduced treaty rates rather than the standard non-resident rate. For FDI clients, treaty relief is claimed on dividend remittance via NRB approval. Alpine handles DTAA forms, country-of-residence certificates, and reduction claims at IRD.
What happens during an IRD audit?
An IRD audit under Income Tax Act 2058 Sec. 100–104 typically begins with a notice listing the financial year(s) under review and the documents requested — books of account, audited financials, bank statements, VAT and TDS returns, large-expense vouchers, transfer-pricing documentation. The taxpayer has 35 days to respond. The audit can produce: confirmation of the filed return; additional tax assessment with explanation; penalty or interest charge; or referral for prosecution in fraud cases. Disputed assessments are appealable — Alpine handles the entire chain from document production, position defence, administrative objection, DG appeal, and Revenue Tribunal proceedings.
How are tax disputes resolved in Nepal?
Three-step appeal chain under Income Tax Act 2058. Step 1 — Administrative objection: filed within 30 days of the assessment order at the assessing IRD office. Step 2 — Director-General appeal: 30 days from the objection order. Step 3 — Revenue Tribunal under Sec. 108: 35 days from the DG order. Further appeal to the Supreme Court is permitted on questions of law. Alpine represents at every stage with the necessary technical and legal arguments — VAT and TDS disputes follow a parallel three-step chain under VAT Act 2052.
What is capital-gains tax on property sale?
Capital gains on immovable property sale under Income Tax Act 2058 Sec. 95 is 5% of the gain for individuals on long-term holdings (over 5 years from acquisition); 7.5% for short-term holdings; 25% at the corporate rate where the seller is a company. The gain is sale price minus original purchase price minus documented improvements minus broker, registration, and stamp-duty costs. Computation and reporting are part of the annual income-tax return. For NRN sellers, capital gains tax + DTAA relief + NRB approval for repatriation all apply — Alpine handles the integrated workflow.
What does tax compliance and advisory cost?
Per-filing pricing: individual income-tax return NPR 5,000–15,000; company annual return NPR 15,000–60,000 (size-dependent); capital-gains computation + IRD filing NPR 10,000–30,000 per transaction; DTAA application NPR 25,000–60,000 per claim; IRD audit defence NPR 75,000 and up per matter. Retainer model: basic monthly compliance NPR 25,000–80,000/year, FDI-inclusive retainer (monthly + DTAA + repatriation coordination) NPR 80,000–2,00,000/year. Government and tax payments pass through. Fixed-fee quote at intake.
Tax notice, audit, or planning question?
Free first consultation. Fixed-fee tax-position review available. NRN, FDI-invested companies, and high-net-worth individuals welcome.
Free consultation+977 9841114443Frequently asked questions
The FAQ section below covers the questions clients most often raise during the first tax consultation — filing rhythm, current rates, VAT threshold, TDS mechanics, DTAA scope, capital gains, NRN tax position, IRD audits, dispute appeal chain, dividend repatriation, PAN, and retainer cost.
Related guides: Income Tax Rates in Nepal · Income Tax Act of Nepal · PAN Card Registration · FDI in Nepal · Tax Law practice area · Company Compliance service · NRN Services.