Final Withholding Payments in Nepal

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Final Withholding Payments in Nepal.
Final Withholding Payments in Nepal.

We will look after the Final Withholding Payments in Nepal.

Meaning

Final Withholding payments is such payments which is not included in assessable income form business, employment, and investment.

For example. earning of interest from the bank and financial institution is deposited to your account after deducting tax. Interest income is not included in any section such as employment, business, and investment.

Final Withholding Payments in Nepal

The following payments shall be treated as final withholding payments.

  1. Dividends paid by a resident company or partnership firm.
  2. Rent for the lease of land or a building and associated fittings and fixtures, having a source in Nepal, and that is received by an Natural person other than in conducting a businesss.
  3. Payment made by residents person for gains from investment insurance.
  4. Payment made by an resident unapproved retirement fund for the interest on that fund.
  5. Interest paid by the bank, financial institutions, or any other institutions issuing debentures, or companies listed under prevailing laws or cooperatives having following conditions.
    • i. Payment which has a source in Nepal and which is not received by the natural person in the course of conducting a business.
    • ii. Payments made to an exempt organization.
  6. Payments made to non-residents persons that are subject to withholding tax.
  7. All types of retirement payments including the retirement payments mad by Government of Nepal. An approved retirement fund or an unapproved retirement fund ( except the regular pension payment).
  8. Meeting fee, payment made for occasional teaching.
  9. Payment for windfall gain.
  10. Return amount distributed to a natural person by a mutual fund.

Hence, these are the final withholding payments.

Other Important links:

  1. Tax slab for Income from Emplyment: CLICK HERE
  2. TDS rate in Nepal: CLICK HERE