Nepal’s electronic tax system Google registration, paying 2 percent tax on income
Google LLC (Limited Liability Company), the king of the world’s largest Internet search engine, has been registered in the tax system of Nepal. News that Google has been registered to pay the electronic service tax provided by the Financial Act of the current fiscal year 2079-80 Vishwas Regmi in Gorkhapatra Dailyhas written.
Rajuprasad Pyakurel, spokesperson of the Internal Revenue Department, said that Google, the world’s largest technology company, has registered with the Large Tax Payers Office under the Internal Revenue Department.
Pakurel, the spokesperson of the department, said, ‘Google LLC has been registered in the name of the regional office in Singapore according to the Electronic Service Tax Act of the government’s fiscal year 079/80. Now Google will also pay tax in Nepal for the various services it provides.’
In order to look after the administration of electronic service tax, the department has assigned the responsibility to the large taxpayer office at Harihar Bhavan in Lalitpur. From the current financial year 2079/80, the government has imposed an electronic service tax at the rate of 2 percent on the transaction value of electronic services provided by non-residents to consumers in Nepal.
The same Google will now have to pay 2 percent of the total income earned by providing services to Nepali consumers in Nepal. However, the government does not have official data about how much annual income Google earns from Nepal.
Gmail, YouTube, web browsing Chrome and Android operating system provided by Google, which is known as the king of search engine internet, are popular in Nepal. Apart from this, Google is also providing cloud computing, maps, photos and other services.
Low attractiveness in electricity tax
With the aim of expanding the scope of the tax, the electronic service tax implemented by the government from the current year has not seen much attraction. According to the department, apart from Google, only Australia-based Ibisco Inc. has so far been registered for such a tax.
This type of new tax title was added in Nepal with the conclusion that the consumption of the world’s largest technology companies is also increasing in Nepal and it can also be brought under the tax scope. However, so far only two companies have not come to register.
According to the Economic Act, 2079, non-residents who have an annual turnover of more than 2 million rupees must be registered for such tax. A person registered in that way has to file his business details and taxes according to the income year.
If the tax is not filed within the specified time, a fee of 0.1 percent of the annual turnover will be charged. Interest at the rate of 15 percent per annum will be charged if a person does not file the tax by the due date. It has been arranged that no income tax will be charged on the income filed in this way.
The government is going to make more efforts to increase the attractiveness of the facility as it is not registered even though it is provided legally. Revenue Secretary Dr. Dr. Revenue Secretary said that programs such as calling such companies to be registered for tax will be increased and programs such as contacting the companies and asking them to come for registration as needed. Ramprasad Ghimire informed.
Spokesman Pakurel informed that the Internal Revenue Department has also made arrangements to register online with the aim of helping to register in the tax system. ‘You can register for tax online by completing the necessary documents,’ he said, ‘you don’t have to come to Nepal for that.’
The department said that when a well-known company like Google is registered in Nepal’s tax system, it will help other companies to register in the future.
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