The Inland Revenue Department (IRD) of Nepal released a set of tax notices pertaining to the fiscal year 2023/24 (2080/81 Nepal year). These notices encompass various measures outlined in the fiscal year 2023/24 Budget. One significant aspect of these notices relates to the income tax rates applicable to both individuals and legal entities. Specifically, the notices provide details on the brackets and corresponding rates for income tax in the 2023/24 (2080/81) fiscal year.
For Unmarried people
|
Annual income |
Tax rate |
|
Up to Rs 500,000 |
1% |
|
Additional Rs 200,000 |
10% |
|
Additional Rs 300,000 |
20% |
|
Additional Rs 1 00,000 |
30% |
|
Additional Rs 30,00,000 |
36% |
|
Over Rs. 50,00,000 |
39% |
For Couple status
|
Annual income |
Tax rate |
|
Up to Rs 600,000 |
1% |
|
Additional Rs 200,000 |
10% |
|
Additional Rs 300,000 |
20% |
|
Additional Rs 900,000 |
30% |
|
Additional Rs 30,00,000 |
36% |
|
Over Rs. 50,00,000 |
39% |
Note:
- If the taxpayer is depositing the amount in the Social Security Fund (SSF) then for those taxpayers Social Security Tax(1%) is not applicable.
- A natural person who has procured life insurance and paid the premium amount thereon shall be entitled to a deduction from the taxable income the lower of the actual annual
- In case of contribution to the Social Security Fund (SSF)
– 1/3rd of taxable income or Rs 500,000 or Actual contribution whichever is lower.
In case of contribution to other approved retirement funds but not in SSF
– 1/3rd of taxable income or Rs 300,000 or Actual contribution whichever is lower insurance premium or Rs 40,000