Complete Compliance Guide for Businesses in Nepal
Master income tax, VAT, TDS calculations and government regulations with our interactive tools
Calculate your tax obligations instantly with Nepal's 2026 tax rates
Calculate income tax based on Nepal's progressive tax rates for individuals and businesses
Calculate VAT at 13% standard rate with options for inclusive and exclusive calculations
Calculate Tax Deducted at Source for salaries, contractor payments, and services
Calculate net take-home salary after all deductions including SSF and income tax
Stay compliant with Nepal's business regulations and tax requirements
Understand IRD registration, computerized billing, and tax filing requirements
Complete guide to Value Added Tax rates, exemptions, and regulations in Nepal
Nepal's progressive tax structure, slabs, and allowable deductions for 2026
Tax Deducted at Source rates, exemptions, and filing processes
Complete guide to obtaining and using Permanent Account Number in Nepal
Social security contributions, rates, and benefits for employees in Nepal
Accounting standards for financial reporting and compliance in Nepal
General business registration, licenses, and compliance requirements in Nepal
Key deadlines for tax filing and compliance in Nepal (Fiscal Year 2082/83 BS)
File monthly VAT returns by 25th of next month. Quarterly filers by end of next month.
Pay 40% of estimated tax liability by end of Ashwin (first quarter).
Pay additional 30% of estimated tax (cumulative 70%) by end of Poush.
Pay remaining 30% (cumulative 100%) of estimated tax by end of Chaitra.
End of fiscal year 2082/83 BS. Prepare financial statements and audit reports.
Submit annual income tax return within 3 months of fiscal year end (by Kartik).
Essential tax figures and rates for the current fiscal year
Applied to most goods and services in Nepal
Highest bracket for income above Rs. 20 lakh
For registered contractors with PAN
Employee (11%) + Employer (20%)
Standard rate for companies in Nepal
Annual turnover requiring VAT registration
VAT (13%) is an indirect consumption tax charged on goods and services at each stage of production/distribution. It's collected from customers and remitted to the government. Income Tax is a direct tax on business profits or personal income, calculated using progressive tax slabs. Both taxes are separate obligations - a business may need to pay both VAT and Income Tax.
Businesses with annual turnover above Rs. 50 lakhs (Rs. 5 million) are required to register for VAT with IRD. Voluntary registration is available for businesses below this threshold. Certain businesses like importers, government contractors, and specified sectors must register regardless of turnover.
TDS (Tax Deducted at Source) is a withholding tax collected by the payer on behalf of the government. It applies to: salary payments (progressive rates), contractor payments (1.5% with PAN, 15% without), consultancy fees (15%), rent payments (10%), interest and dividends (5-15% depending on type). The deducted amount is deposited to IRD monthly.
IRD Computerized Billing is a mandatory requirement for VAT-registered businesses to use IRD-approved billing software. MrSolution v2018 is fully IRD-compliant and generates proper VAT invoices with required fields: seller PAN, buyer PAN (if registered), invoice number, date, item details, and VAT breakdown. Real-time sales data may be transmitted to IRD for compliance monitoring.
SSF is Nepal's social security scheme requiring contributions from both employees and employers. Employee contributes 11% of basic salary (deducted from salary) and employer contributes 20% (additional cost to employer). Total contribution is 31%. Benefits include medical treatment, accident coverage, disability support, dependent family protection, maternity benefits, and retirement fund.
MrSolution v2018 provides comprehensive tax compliance features: IRD-approved computerized billing, automatic VAT calculation and reporting, TDS management and certificates, Income Tax computation, SSF contribution tracking, Nepal Accounting Standards (NAS) compliant reports, Bikram Sambat calendar support, and automated tax filing data preparation. It's trusted by 500+ businesses across Nepal.
MrSolution v2018 includes built-in features for Nepal tax compliance, automated calculations, IRD-compliant billing, and comprehensive reporting.