TDS Rate in Nepal 2079/80

January 4, 2023

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

Following is the TDS Rate in Nepal 2079/80.

Particulars	Tax Rates
On interest, royalty, service charge, retirement payment source in Nepal, except mentioned otherwise	15%
Payment made to resident person on service charge invoiced in VAT bill or to a resident entity carrying out VAT exempt transaction.	1.5%
On Nepal sourced interest by banks and financial institutions and/ or listed companies to a natural person except made connection with business.	5%
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.	10%
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 Nepal	5%
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 fund	5%

Particulars	Tax 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 contracts	5%
2. Premium paid to non-residents insurance company	1.5%
3. In other cases, if written notice is issued to the payer residents person	As 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.

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