As per finance bill income tax rate for individual person has been revised. New rates are effective from 2078 Shrawan 1 to 2079 Ashad 31.

Income tax rate for Individuals (Unmarried)

Annual IncomeIncome Tax Rate (FY 2077/78)
Up to Rs 4,00,0001%
Additional Rs 1,00,00010%
Additional Rs 2,00,00020%
Additional Rs 1,300,00030%
Additional Tax Above Rs 2,000,00036%
Fig: Income tax slab rate for individual person FY 2078/79

Income Tax Rate for Married Couple

Annual Income Tax Rate In Nepal (FY 2077/78)
Up to  Rs 450,0001%
For Additional Rs 100,00010%
For Additional  Rs 200,00020%
For Additional Rs 1,250,00030%
Additional Tax Above Rs 2,000,00036%
Fig: Income tax slab rate for Married Couples for FY 2078/79

Income Tax Rate for Non-Residents

Source of IncomeTax Rate
Normal transactions25%
Through shipping, air or telecom services, postage, satellite and optical fiber project5%
Shipping, air or telecom services through the territory of Nepal2%
Repatriation of profit by Foreign Permanent Establishment5%
Fig: Income tax rate for non-residents

Coprorate Income Tax Rates

Type of BusinessNormal Tax RateRebate Applicable Tax Rate
Normal Business25%25%
Special Industry under section 11 for the whole year25%20%20%
Constructing and operating ropeway, cable car, railway,
tunnel or sky bridge
Constructing and operating roads, bridges, tunnel,
railway, and airports
Trolley bus or trains25%40%15.00%
Entities with export income from a source in Nepal25%20%20%
Banks and financial institutions (A,B & C Class)30%30%
General Insurance (Non-Life Insurance)30%30%
Tobacco, alcohol, cigarette and related products30%30%
Telecom and Internet Services30%30%
Capital market, Securities, Merchant banking, Commodity
future market, Securities & Commodity broker
Money transfer30%30%
Petroleum business under Nepal Petroleum Act, 204030%30%
Fig: Income tax rate for corporate for FY 2078/79

Leave a comment

Your email address will not be published.