INDIVIDUAL TAXATION

Nonresidents are taxed on their Nepalese-sourced income. Married couples may be taxed jointly or separately.

INCOME TAX

Income earned by nonresidents is taxed at a flat rate of 25%.

RENTAL INCOME
Rental income earned by nonresidents from leasing property is subject to 25% withholding tax.

CAPITAL GAINS
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.

CORPORATE TAXATION

INCOME TAX

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.

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 0.05% to 1.50% per year, depending on the type of construction of the house.

URBAN HOUSE AND LAND TAX
TAX BASE, NPR (US$)	TAX RATE
Up to 1 million (US$9,009)	nil
1 million - 2 million (US$18,018)	NPR300 (US$3)
2 million - 3 million (US$27,027)	0.05%
3 million - 5 million (US$45,045)	0.25%
5 million - 10 million (US$90,090)	0.50%
Over 10 million (US$90,090)	1.50%
Source: Global Property Guide