A separate bank account to file taxes to companies like Google, Facebook for providing services in Nepal
A separate bank account has been brought into operation to file taxes payable by foreign companies providing digital services to Nepali customers.
The Internal Revenue Department has opened a separate account to file the Value Added Tax (VAT) and Digital Service Tax (DST) from abroad in Nepal for electronic services provided by non-residents to Nepali consumers.
The Internal Revenue Department has also requested to deposit the revenue amount in the revenue account within the specified period. The tax payer will have to bear the fees incurred while sending the amount to the account.
From the budget of the current fiscal year, the government has provided for 13 percent Value Added Tax (VAT) and 2 percent Digital Service Tax (DST) to be levied on the business when non-residents provide electronic services to Nepali consumers, and it has also prepared a separate procedure for digital service tax.
According to the Economic Act, 2079, non-residents who have an annual turnover of more than 20 lakh rupees must be registered for such tax. So far only Google, Ibisco Inc and LinkedIn have been registered in Nepal.