Income Tax Rates in Nepal 2025: Corporate and Individual Taxation

Understanding the income tax rates in Nepal for 2025 is essential for both businesses and individuals. Whether you are starting a new company or managing your personal finances, staying updated with the latest tax regulations helps you plan better and stay compliant.

At Company Sewa, we specialize in company registration and related services, including company updates, share transfers, and company closures in Nepal. In this blog post, we break down the corporate and individual income tax rates for 2025 in simple terms.

Corporate Income Tax Rates in Nepal 2025

For companies operating in Nepal, income tax is a major component of financial planning. Here are the updated tax rates for 2025:

Type of Company	Tax Rate
Public Limited Companies	25%
Private Limited Companies	25%
Banks and Financial Institutions	30%
Insurance Companies	30%
Hydroelectricity Companies	10%
Manufacturing Companies	20%

Note: Certain industries, such as hydropower, benefit from lower tax rates as an incentive from the government.

Individual Income Tax Rates in Nepal 2025

Individual taxpayers are taxed on a progressive scale based on their annual income. Below is the income tax slab for individuals:

Annual Income (NPR)	Tax Rate
Up to 500,000	1%
500,001 to 700,000	10%
700,001 to 2,000,000	20%
Above 2,000,000	30%

Additional points:

• Senior citizens (above 60 years) may have different slabs or benefits.
• Taxpayers can claim deductions under various sections, reducing taxable income.

Why Knowing Tax Rates Matters for Your Business

Tax planning plays a critical role in maximizing profits and ensuring compliance with Nepal’s laws. If you are planning to register a company, or you need help with company updates, share transfers, or closure, understanding tax obligations is vital.

Our expert team at Company Sewa helps you navigate these processes smoothly, ensuring your company stays compliant with the latest regulations.

Reference & Further Reading

• The Income Tax Act, 2058 (2002), Nepal – The primary legal framework governing income taxation in Nepal.
• “What Are the Types of Taxable Income in Nepal?“ – An informative overview explaining different categories of taxable income under Nepalese tax law.
• Video Resource: Understanding Taxable Income in Nepal – YouTube – A visual guide to taxable income, helpful for beginners and professionals alike.