Central & South Asia
Nepal: tax at a glance
Residents are taxed on worldwide income. Personal tax is progressive with a top-band surcharge, alongside a 25% standard corporate rate and 13% VAT.
Worldwide (residence-based)
Last verified
The taxes
- Personal income (top)
- 36%Progressive, from 1% to 30%, with a further 20% surcharge on tax for income over NPR 5m. That brings the effective top rate to 36%.
- Corporate income
- 25%
- Capital gains
- 5%–7.5% on listed shares, 10% on unlisted shares, and 5%–7.5% on gains from land or buildings.
- VAT
- 13%
- Dividends (WHT)
- 5%
- Interest (WHT)
- 15%
- Royalties (WHT)
- 15%
- Social security (employee)
- 11%
- Social security (employer)
- 20%
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Municipal house-and-land tax and land-registration fees.
- Other
- Social Security Fund contributions apply. Banks and financial institutions pay 30% corporate tax, while some concessional industries pay 20%.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.