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Tax
Corporate tax, VAT, withholding, transfer pricing and disputes with the Inland Revenue Department.
We advise on the tax treatment of transactions and structures under the Income Tax Act 2058 and the Value Added Tax Act 2052, and on the withholding obligations that attach to cross-border payments.
For foreign investors, the questions that recur are whether a permanent establishment arises, what rate of withholding applies to dividends, interest, royalties and service fees, and whether a double taxation avoidance agreement reduces that rate. Nepal has treaties with a limited number of countries, and whether one applies is often decisive to the economics of a structure.
Services
- Transaction structuring and tax opinions
- Permanent establishment analysis
- Withholding tax on cross-border payments
- Double taxation avoidance agreement application
- VAT registration, treatment and refunds
- Transfer pricing documentation
- Tax assessment objections and appeals
- Representation before the Revenue Tribunal
- Customs and excise advice
Statutes
- Income Tax Act 2058 (2002)
- Value Added Tax Act 2052 (1996)
- Excise Act 2058 (2002)
- Customs Act 2064 (2007)
- Finance ActAnnual — rates and thresholds change each fiscal year
Regulators
- Inland Revenue Department
- Large Taxpayers Office
- Revenue Tribunal
- Department of Customs