On 2 June 2023, the Inland Revenue Department (IRD) of Nepal published a series of tax notices regarding the fiscal year 2023/24 (2080/81 Nepal year), including certain measures of the Budget for fiscal year 2023/24. Among others, this includes the following notices on the income tax rates for natural persons and legal entities:

• The rate of income tax for natural persons for 2023/24 (2080/81), which includes the following brackets/rates:
  • up to NPR 500,000 (up to 600,000 for couples) - 1%
  • over NPR 500,000 up to 700,000 (over NPR 600,000 up to 800,000 for couples) - 10%
  • over NPR 700,000 up to 1,000,000 (over NPR 800,000 up to 1,100,000 for couples) - 20%
  • over NPR 1,000,000 up to 2,000,000 (over NPR 1,100,000 up to 2,000,000 for couples) - 30%
  • over NPR 2,000,000 up to 5,000,000 - 36%
  • over NPR 5,000,000 - 39%
• The rate of income tax for legal entities for 2023/24 (2080/81), which includes:
  • general businesses - 25%
  • banks, financial institutions, general insurance businesses, Telecommunications and Internet Service providers, securities and commodity brokerage businesses, and certain others - 30%

Other notices include Rate of tax deduction on payments for 2023/24 (2080/81), Business exemptions and facilities for 2023/24 (2080/81), and Discounts and concessions for 2023/24 (2080/81).

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