--- name: nepal-corporate-tax description: "ALWAYS read this skill before touching any Nepal corporate income tax work. Use whenever asked about Nepal company tax for a resident entity. Trigger on phrases like \"Nepal corporate tax\", \"Nepal CIT\", \"company tax Nepal\", \"25% corporate Nepal\", \"30% bank tax Nepal\", \"special industry rebate Nepal\", \"Section 11 Nepal\", \"Income Tax Act 2058 company\", or \"FY 2082/83 company\". Covers the Income Tax Act 2058 (2002) as amended by the Finance Act 2082: the 25% normal rate, the 30% sector rate (banks/insurance/telecom/liquor-tobacco/etc.), and the effective 20% for special industries. Out of scope — personal income tax (separate skill), TDS (separate skill), payroll/SSF, VAT, and sector special computational regimes." license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)" metadata: source: openaccountants openaccountants_url: "https://www.openaccountants.com/skills/nepal-corporate-tax" jurisdiction: "NP" tax_year: "2025" last_updated: "2026-07-13" reviewed_by: "Ashish Bista" review_status: "current" --- # Nepal Corporate Tax ## Nepal — Corporate Income Tax — Skill v1.0 > **Produced by OpenAccountants (openaccountants.com).** Research-grade (tier 2) for FY 2082/83. **Source provenance:** figures derive from Nepali professional-firm tax-fact publications (PKF T.R. Upadhya, Baker Tilly Nepal) reflecting the Income Tax Act 2058 and Finance Act 2082 — not re-anchored to primary IRD pages. A Nepali CA must confirm against the statute before reliance. Not tax advice. ## Verified rates & thresholds (accountant-reviewed) > Reviewed against the cited tax authorities by **Ashish Bista** on 2026-06-06. > Items flagged for further clarification are tracked separately and excluded here. > This block is generated from verified `skill_facts` — edit the facts, not the prose. ### Corporate Income Tax - **Normal rate** — 25% (general companies, firms, industries) _(Income Tax Act 2058 Sch.1 (PKF/Baker Tilly))_ - **Banks & financial institutions** — 30% _(PKF; Baker Tilly)_ - **General (non-life) insurance** — 30% _(PKF; Baker Tilly)_ - **Petroleum** — 30% _(PKF; Baker Tilly)_ - **Cigarettes/tobacco/cigars/pan masala/alcohol/beer** — 30% _(PKF; Baker Tilly)_ - **Telecom & internet service providers** — 30% _(PKF; Baker Tilly)_ - **Money transfer; capital market/securities/merchant banking/broker** — 30% _(PKF; Baker Tilly)_ - **Special industries (Section 11)** — Effective 20% (25% less a 20% rebate) _(Income Tax Act 2058 s.11 (actNepal))_ - **Listed shares — resident entity (capital gains)** — 10% _(Income Tax Act 2058 s.95Ka (PKF/Baker Tilly))_ - **Land/building — non-individual (entity) capital gains** — 1.5% _(PKF; Baker Tilly)_ - **Annual return / instalment due dates** — Advance tax due Poush end (40%), Chaitra end (70%), Ashad end (100%); Final return due Ashwin end _(Income Tax Act 2058 s. 94 & 96)_ - **Export / SEZ / sector concessions beyond Sec 11** — Startups (up to 100m turnover) exempt for 5 yrs; IT exports get 75% tax exemption _(Finance Act 2083)_ - **IT Industry Bonus Shares** — 0% dividend tax on the capitalization of profits (bonus shares) issued by IT industries _(Finance Act 2083)_ - **SEZ Rent Exemption** — 100% rent exemption for the first 3 years for new industries established in Special Economic Zones _(Finance Act 2083)_ - **Tax Dispute Resolution (Waiver)** — One-time settlement window: principal tax + 1% fee (waives penalties/interest) _(Finance Act 2083)_ ## Section 1 — Quick reference **Quick reference** | Field | Value | | --- | --- | | Country / authority | Nepal — Inland Revenue Department (IRD), ird.gov.np | | Currency | NPR | | Income year | Shrawan 1 – Ashad end (BS); FY 2082/83 ≈ mid-July 2025 – mid-July 2026 | | Primary legislation | Income Tax Act 2058 (2002), as amended by Finance Act 2082 | | **Normal rate** | **25%** of taxable income (general companies, firms, industries) | | **Sector rate** | **30%** — see §3.2 | | **Special industries (Sec 11)** | Effective **20%** (25% normal less a 20% rebate) | | Validated by | Pending — Nepali CA / registered tax practitioner | | Skill version | 1.0 | ### Conservative defaults **Conservative defaults** | Ambiguity | Default | | --- | --- | | Sector unclear | Apply 25% normal | | Whether 30% sector rate applies | Apply 30% if the entity is in any §3.2 sector; flag | | Special-industry (Sec 11) rebate claimed | Apply 25% until eligibility confirmed; flag | ## Section 2 — Refusal catalogue - **R-NP-CT-1** — Sector special computational regimes (banking provisioning, insurance, petroleum) — out of scope; escalate. _(Section 2 — Refusal catalogue)_ - **R-NP-CT-2** — Special-industry / export / SEZ concessions beyond the headline Section 11 rebate — VERIFY against the Act; escalate. _(Section 2 — Refusal catalogue)_ - **R-NP-CT-3** — Cross-skill. Personal → `nepal-income-tax`; TDS → `nepal-tds`; payroll/SSF → `nepal-payroll`; VAT → `nepal-vat`. _(Section 2 — Refusal catalogue)_ ## Section 3 — Tier 1 rates ### 3.1 Normal rate — 25% - **Normal rate** — 25% (general companies, firms, industries) _(Income Tax Act 2058 Sch.1 (PKF/Baker Tilly))_ ### 3.2 Sector rate — 30% - **Sector rate applicability** — A 30% rate applies to entities in these sectors: Banks and financial institutions (commercial/development banks, finance companies); General (non-life) insurance; Financial-transaction (money-transaction) entities; Petroleum; Cigarettes, tobacco, cigars, pan masala, alcohol, beer; Telecommunications and internet service providers; Money transfer; Capital market / securities / merchant banking / brokerage businesses _(Income Tax Act 2058 (as amended by Finance Act 2082))_ ### 3.3 Special industries — effective 20% (Section 11) - **Special industries rebate mechanism** — "Special industries" under Section 11 receive a 20% rebate on the normal rate, yielding an effective 20% (25% × 80%). Confirm eligibility under Section 11. _(Income Tax Act 2058 s.11)_ Rates are **unchanged from FY 2024-25**. **Source:** PKF Trunco; Baker Tilly; actNepal (Section 11 mechanism). ## Section 4 — Tier 2 (capital gains for entities) - **Listed shares disposed by a resident entity** — 10% - **Land/building owned by a non-individual (entity)** — 1.5% (Individual rates are in `nepal-income-tax` / a CGT context.) ## Section 5 — Worked examples - General company, taxable income NPR 20,000,000 → CIT = 25% × 20,000,000 = **NPR 5,000,000**. - Commercial bank, taxable income NPR 20,000,000 → CIT = 30% × 20,000,000 = **NPR 6,000,000**. - Qualifying special industry, taxable income NPR 20,000,000 → CIT = 20% × 20,000,000 = **NPR 4,000,000**. ## Section 6 — Filing - Income year Shrawan 1 – Ashad end; file via IRD with PAN. - Annual return + instalment due dates — **VERIFY** (not established by the research). ## Section 7 — Sources Research-grade, FY 2082/83. **Secondary firm publications — re-anchor to primary IRD/statute:** 1. PKF T.R. Upadhya & Co. "Tax Rates 2082-83" — https://pkf.trunco.com.np/files/publications/1748841198_Tax%20Rates%202082-83_Final_250601_213028.pdf 2. Baker Tilly Nepal "Tax Fact 2025-2026" — https://bakertilly.com.np/storage/download/1750310698_Tax_Fact_2025-2026.pdf 3. Income Tax Act 2058 (2002), Section 11 + Schedule 1 — confirm at https://ird.gov.np 4. Finance Act 2082. **Known gaps / VERIFY:** primary citations; full special-industry / export / SEZ concession schedule; annual return due dates. ## Prohibitions - **Prohibitions** — - NEVER apply 25% to a §3.2 sector entity — those are 30%. - NEVER apply the Section 11 effective-20% without confirming special-industry eligibility. - NEVER present these as primary-IRD-confirmed — flag for verifier re-anchoring. - NEVER file or instruct filing — working paper for practitioner review only. ## Disclaimer For informational and computational purposes only; not tax, legal, or financial advice. All outputs must be reviewed and signed off by a qualified Nepali professional (CA / registered tax practitioner) before filing or acting upon. Latest verified version at [openaccountants.com](https://openaccountants.com). --- ## Talk to a verified accountant This guide is maintained by the OpenAccountants network — accountants who put their name behind the tax answers AI gives people. The live, always-current version (and the professional behind it) is at [openaccountants.com](https://www.openaccountants.com). - Use it in your AI: https://www.openaccountants.com/connect - Meet the accountants: https://www.openaccountants.com/network > **General reference only.** This document does not constitute tax, legal, or > financial advice. Verify figures against the cited primary sources or with a > licensed professional before relying on them. ## Today's figures and who stands behind this skill This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `nepal-corporate-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/nepal-corporate-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.