Nepal: Living There - Tax Issues
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Living There
INDIVIDUAL TAXATION
Residents are taxed on their worldwide income. Married couples may be taxed jointly or separately.
INCOME TAX
Taxable income in Nepal includes income from business, investment and employment. Generally, net taxable income from each category is computed separately and then aggregated to arrive at the total net taxable income.
INCOME TAX FOR INDIVIDUALS |
|
| TAXABLE INCOME, NPR (US$) | |
| Up to 80,000 (US$1,055) | |
| 80,000 155,000 (US$2,045) | |
| Over 155,000 (US$2,045) | |
| Source: Global Property Guide | |
INCOME TAX FOR MARRIED |
|
| TAXABLE INCOME, NPR (US$) | |
| Up to 100,000 (US$1,319) | |
| 100,000 175,000 (US$2,309) | |
| Over 175,000 (US$2,309) | |
| Source: Global Property Guide | |
Resident individuals are entitled to the following deductions:
- Allowance for each individual taxpayer NPR80,000 (US$1,055)
- Allowance for a married couple filing jointly NPR100,000 (US$1,319)
- Allowance for individuals living in a remote area maximum of NPR30,000 (US$396)
- Medical tax credit maximum of 15% of the approved medical costs
RENTAL INCOME
Rental income from leasing property is subject to 15% withholding tax. This tax is credited to the taxpayers annual tax liability.
CAPITAL GAINS
Capital gains realized from selling real property are considered ordinary income and taxed at the standard progressive income tax rates.
PROPERTY TAX
Urban House and Land Tax
The urban house and land tax is levied on the value of the property. Depreciation is taken into account, at rates ranging from 0.75% to 3% per year, depending on the type of construction of the house.
URBAN HOUSE AND LAND TAX |
|
| TAX BASE, NPR (US$) | |
| Up to 1 million (US$13,193) | |
| 1 million 2 million (US$26,385) | |
| 2 million 5 million (US$65,963) | |
| 5 million 10 million (US$131,926) | |
| 10 million 20 million (US$263,852) | |
| Over 20 million (US$263,852) | |
| Source: Global Property Guide | |
Nepal - more data and information
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