Table of Contents
Annual Income Tax of Nepal 2080/81 (Tax Slab)
What is the Annual Income Tax of Nepal?
The Income Tax for the Fiscal Year of 2080/81 was established by the Annual Budget Declaration of Nepal which brought some form of Changes to the structure of Taxation for the Wealthy Segment.
Is it Compulsory to file for Annual Income Tax in Nepal?
Yes, the Income Tax Act 2058 (2002) has made it compulsory for the Filing of Annual Tax in Nepal. The Act has stated that Income Earned by any Person from Employment, Profession or Investment is liable to be taxed by the Government.
What is the Income Tax Rate for Unmarried Person?
The Income Tax Rate for Unmarried Person are as follows:.png)
For incomes up to NPR 5,00,000, the income tax rate is 1%. For incomes exceeding NPR 5,00,000 up to NPR 7,00,000, the tax rate is 10%. For incomes exceeding NPR 7,00,000 up to NPR 10,00,000, the tax rate is 20%. For incomes exceeding NPR 10,00,000 up to NPR 20,00,000, the tax rate is 30%. For incomes exceeding NPR 20,00,000 up to NPR 50,00,000, the tax rate is 36%. For incomes exceeding NPR 50,00,000, the tax rate has been increased to 39%.
| Income Range | Tax Rate |
|---|---|
| Up to NPR 5,00,000 | 1% |
| NPR 5,00,001 – NPR 7,00,000 | 10% |
| NPR 7,00,001 – NPR 10,00,000 | 20% |
| NPR 10,00,001 – NPR 20,00,000 | 30% |
| NPR 20,00,001 – NPR 50,00,000 | 36% |
| Over NPR 50,00,000 | 39% |
What is the Income Tax Rate for Married Person in Nepal?
The Income Tax Rate for Married Individuals or Couples in Nepal are as follows:
For couples with a combined income up to NPR 6,00,000, the income tax rate is set at 1%. For couples with a combined income exceeding NPR 6,00,000 up to NPR 8,00,000, the tax rate is set at 10%. For couples with a combined income exceeding NPR 8,00,000 up to NPR 11,00,000, the tax rate is set at 20%. For couples with a combined income exceeding NPR 11,00,000 up to NPR 20,00,000, the tax rate is set at 30%. For couples with a combined income exceeding NPR 20,00,000 up to NPR 50,00,000, the tax rate is set at 36%. For couples with a combined income exceeding NPR 50,00,000, the income tax has been increased to 39%.
| Income Range | Tax Rate |
|---|---|
| Up to NPR 6,00,000 | 1% |
| NPR 6,00,001 – NPR 8,00,000 | 10% |
| NPR 8,00,001 – NPR 11,00,000 | 20% |
| NPR 11,00,001 – NPR 20,00,000 | 30% |
| NPR 20,00,001 – NPR 50,00,000 | 36% |
| Over NPR 50,00,000 | 39% |
How much is Income Tax in Nepal?
In Nepal, the Basic Income Tax is 1% on Earnings upto NPR 5,00,000 per Annum. In other Words, Individuals with Monthly Salary Below NPR 41,667/- are just expected to pay 1% Tax. However, there are certain increments after the increase in their Earnings.
What is the Tax Rate for 2080/81?
The Standardized Tax Rate for 2080/81 is 1% for Singles with Income less than NPR 5,00,000 per Month and 1% for Couples with Income less than NPR 6,00,000 per Month.
What are the Changes in Income Tax Rate?
The Major Changes brought by the Annual Budget of Nepal in Income Tax are as follows:
- The Income Tax to be paid by Individuals with Income above NPR 5 Crores per Annum has been increased from 36% in Fiscal Year 2079/80 to 39% in Fiscal Year 2080/81.
- Individuals engaged in Visit of a Foreign Country must pay an Additional 5% of the Package to the Government of Nepal.
- For Individuals that are engaged in receiving Foreign Payments in Nepal for providing services outside Nepal, their Income Tax has been increased to 5%.
- Furthermore, Digital Service Tax has been increased to the Rate of 2%
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