Govt to levy digital service tax on social media

Kathmandu: Non-resident individuals and companies also have to pay tax for electronic services provided to consumers in Nepal.

The government has made an arrangement to start levying electronic service tax (digital service tax) by levying 2 percent tax on the transaction price of such electronic services through the Fiscal Bill 2022.

Accordingly, digital platforms like Netflix will have to pay 2 percent tax when doing business with Nepali citizens. Such fees may also be attracted to payments made by Nepali advertisers to YouTube and Facebook.
The government has implemented new tax collection provision through Fiscal Bill 2022. However, such tax will not be levied up to Rs 2 million per annum for such electronic services.