It’s important for individuals and businesses to understand income tax rates. This ensures compliance with the tax laws of the land. In Nepal, the tax landscape is always changing. As we step into 2024, it is essential to know the latest tax rates for corporate entities and individuals.
Income Tax Rates for Corporate in Nepal
Corporate tax rates play an important role for businesses. They vary depending on the nature of the business entity.
Here are the income tax rates for Corporate in Nepal for the fiscal year 2080/81 (2024-25):
- General Business: The standard corporate tax rate is 25%.
- Life Insurance Companies: Life insurance companies also fall under the 25% corporate tax rate bracket.
- Banks and Financial Institutions: For banks, financial institutions, general insurance companies and enterprises engaged in the petroleum business, the corporate tax rate is 30%.
| Type of Business | Tax Rate |
|---|---|
| General Business | 25% |
| Life Insurance Companies | 25% |
| Banks and Financial Institutions | 30% |
These rates apply to both domestic and foreign companies operating in various sectors, promoting a fair and equitable tax structure.
Income Tax Rates for Individuals in Nepal
Here are the income tax rates for individuals in Nepal for the fiscal year 2080/81 (2024-25):
| Annual Income | Tax Rate |
|---|---|
| Up to NPR. 5,00,000 | 1% |
| Greater than NPR. 5,00,000 to 7,00,000 | 10% |
| Greater than NPR. 7,00,000 to 10,00,000 | 20% |
| Greater than NPR. 10,00,000 to 20,00,000 | 30% |
| Above NPR. 20,00,000 | 36% |
Reference:
