S.N.

Schedule / Section

Description of Business / Entity / Income Status

Tax Rate

1.

Schedule-1, Section 2, Sub-section (1)

Entity carrying on general business.

25 %

2.

Schedule-1, Section 2, Sub-section (2)

Bank, financial institution, general insurance business, entity carrying on financial transactions, or telecommunications and Internet service; foreign currency exchange (money transfer); capital market business; securities business; merchant banking business; commodity futures market; securities and commodity broker business; cigarette, bidi, cigar, chewing tobacco, khaini, gutkha, pan masala, alcohol and beer business; or an entity carrying out petroleum activities pursuant to the Nepal Petroleum Act, 2040.

30 %

3.

Schedule-1, Section 2, Sub-section (3)

If a cooperative institution registered pursuant to the Cooperative Act, 2074 carries on transactions other than transactions exempt from tax, tax shall be levied at the following rates:-

Within the area of a municipality,

Within the area of a sub-metropolitan city,

Within the area of a metropolitan city,

However, in the case of a cooperative institution carrying on savings and credit transactions, tax shall be levied at the following rates:-

Within the area of a municipality,

Within the area of a sub-metropolitan city,

Within the area of a metropolitan city,

5 %

7 %

10 %

10 %

15 %

20 %

4.

Schedule-1, Section 2, Sub-section (3kha)

On the taxable income of a school or college registered and operated under a public trust,

20 %

5.

Schedule-1, Section 2, Sub-section (6)

On the income sent abroad by a foreign permanent establishment of a non-resident person situated in Nepal, in any income year,

5 %

6.

Schedule-1, Section 2, Sub-section (7)

In any income year, on the taxable income of a non-resident person in respect of the income referred to in Section 70 of the Act,

However, in the case of a non-resident person providing water transport, air transport or telecommunication services, which does not depart from Nepal to another foreign country,

5 %

 

2 %