Nonresidents are taxed on their Nepalese-sourced income. Married couples may be taxed jointly or separately.
Income earned by nonresidents is taxed at a flat rate of 25%.
Rental income earned by nonresidents from leasing property is subject to 25% withholding tax.
Acquisition costs and related expenses are deductible when calculating taxable capital gains. Capital gains realized from selling real property that are used in business are considered ordinary income and taxed at the standard income tax rate.
Income and capital gains earned by corporations are taxed at a flat rate of 25%. Income-generating expenses and operating expenses are deductible when computing for the taxable income.
The urban house and land tax is levied on the value of the property. Depreciation is taken into account, at rates ranging from 0.05% to 1.50% 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$9,804)|
|1 million – 2 million (US$19,608)|
|2 million – 3 million (US$29,412)|
|3 million – 5 million (US$49,020)|
|5 million – 10 million (US$98,039)|
|Over 10 million (US$98,039)|
|Source: Global Property Guide|
#1 DEEP | March 29, 2010
the web is worth informative but not sufficient, the latest amendments to nepalese taxation and VAT has also to be posted; provisions underlining non-business chargeable assets, depriation bases,foreign establishments and for the multinational subsidiary companies are the most requisites'
Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.
Fortnightly updates from the global property arena directly to your inbox.
Connect to professional advice in Nepal
Which parts of the world are most attractive for property investment today?