International tech companies registered in Nepal started to pay taxes; says IRD

Kathmandu: Tech companies registered in Nepal are gearing up to comply with tax regulations as the Inland Revenue Department (IRD) reveals plans to enforce taxation on thirteen multinational digital companies, including Google, Facebook, TikTok, Microsoft, Netflix, and others.

In an unprecedented move, individuals and companies not physically present in Nepal but engaged in economic activities are now required to register with the department and pay taxes from the current fiscal year.

The government, in accordance with the fiscal year’s economic laws, has facilitated a two percent tax on revenue generated from business operations in Nepal. To facilitate the implementation of this provision, the department has issued guidelines and software for companies, streamlining the process and making it more accessible.

This recent move has been considered a significant success by the department, allowing the government to collect taxes from companies without a physical presence and individuals not in contact in Nepal. The department aims to inform foreign investors about Nepal’s tax system and attract overseas investments by successfully implementing the taxation system for international digital services available in the country.