TDS Rate in Nepal 2079/80

TDS Rate in Nepal
TDS Rate in Nepal

We will know about the TDS Rate in Nepal 2079/80. TDS means tax deduction at source.

TDS Rate in Nepal 2079/80

Following is the TDS Rate in Nepal 2079/80.

ParticularsTax Rates
On interest, royalty, service charge, retirement payment source
in Nepal, except mentioned otherwise
Payment made to resident person on service charge invoiced in VAT
bill or to a resident entity carrying out VAT exempt transaction.
On Nepal sourced interest by banks and financial institutions and/ or listed companies
to a natural person except made connection with business.
On payment made by a resident person for rent having source in Nepal.
No TDS is required on vehicle rent paid to owners of public vehicles who pay
presumptive tax each year.
Payment made to a person registered in VAT and running business of giving vehicles on rent.1.5%
On payment of gain from investment insurance.5%
On payment of gain from retirement fund.5%
Resident person making payment of dividend having source in Nepal5%
On payment of commission by resident employer company to a non-resident person.5%
On payment of lease rental of aircraft.10%
Payments of returns to natural person by mutual fund5%

More TDS Rates

ParticularsTax Rates
On windfall gains. Except national and international level prices as prescribed by Nepal Government. But there shall be no windfall gain tax on national and international prizes/ awards up to Rs. 5,00,000 in case the awards are achieved due to contribution towards literature, art, culture, sports, journalism, science, technology, and public administration. 25%
On contract payments exceeding Rs. 50,000. The limit of Rs. 50,000 is calculated by adding contract payments of last 10 days to the same person on same contract. 1.5%
On contract payments made by residents person to non-residents person
1. On repair of aircrafts and other contracts5%
2. Premium paid to non-residents insurance company1.5%
3. In other cases, if written notice is issued to the payer residents personAs per rate prescribed in Notice.

Hence, these are the TDS Rate in Nepal 2079/80. Moreover, these tax rates keep changing in each fiscal year.

Other Important Links:

  1. Calculation of Income from employment: CLICK HERE
  2. Slab Rate in employment: CLICK HERE
  3. Final Withholding Payments: CLICK HERE