5 percent tax on social media income, 10 percent tax on software export money

With the start of the new financial year from Monday, new tax rates have also been implemented. New tax rates have come into effect from Monday as per provisions in the Economic Act 2080.

From Monday, 5 percent tax will be levied on income from YouTube, Tiktok, etc. from July 1st in Nepal.

A natural person who does not operate a business for providing software or similar electronic services outside Nepal or providing consulting services outside Nepal or uploading audio-visual content on social media has to pay 5 percent tax on payments received in foreign currency.

Earlier, when receiving money in this way, one percent tax was enough. When such amount is paid, the bank deducts 5 percent of the payment.

Similarly, when the e-commerce operator pays the amount of the goods and services sold through the e-commerce operator to the goods or service provider, the provision to deduct one percent advance tax on that amount has also been implemented since July 1. According to this arrangement, those who sell goods from platforms like Daraz will get paid only by deducting 1 percent tax.

Apart from this, the increase in the tax levied on bringing foreign currency through business process outsourcing, software programming abroad will also be implemented from Monday.

The Economic Act has provided for a 10% tax to be levied from Monday, while earlier this amount was levied at 1% tax.

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