Wednesday, June 17, 2009

Page 1 Guide to NEPAL Tax Law Research


Page 1
Guide to NEPAL Tax Law Research
This guide has been prepared to help in finding out Tax Laws, literature, treaties and other relevant
information about Nepalese Tax Law.
I.
Tax Law:
General:
Taxes are imposed at two levels in Nepal. His Majesty's Government (Central Government)
levies taxes nationwide whereas the local governments levy locally in different forms. Every
year His Majesty's Government tables the Finance Bill in the parliament to impose tax. Tax rates
are fixed by the Finance Bill. The Finance Bill is published in the Nepal Gazette.
The following tax-related Acts and Rules are effective in Nepal:
Income Tax Act, 2002 and Income Tax Rules, 2002
Value Added Tax Act, 1996 and Value Added Tax Rules, 1996
Excise Act, 2001 and Excise Rules, 2001
Customs Act, 1962 and Customs Rules, 1962
Vehicle Tax Act, 1974
Tax Arrears Clearance Commission Act, 1976
Revenue Tribunal Act, 1974
How to find :
Originally, these laws are published in the Nepal Gazette. Nepal kanoon Kitab Bebastha Samiti
(A Division of Law ministry) reproduces all the acts and rules. Both the Gazette and reproduced
books are in Nepali language and are treated as legal documents. These books are available in
the following address:
Nepal Kanoon Kitab Byabastha Samiti,
Babar Mahal, Kathmandu, Nepal
Latest Finance Bill, Income Tax Act, 2002 and Income Tax Rules, 2002 Value Added Tax Act,
1996 and Value Added Tax Rules, 1996 are available (Free of cost) in English and Nepali in
Regmi Research (Private) Ltd., a private publisher has translated all the tax laws in English.
These translations are treated as unofficial. To know more about Regmi Research (Private) Ltd,
II.
Treaties:
Nepal has Tax Treaties with 9 Countries. The purpose of the treaty is to relieve double taxation
and to prevent fiscal evasion and to ensure reciprocal administrative assistance in the
enforcement of tax liabilities. In case, existing income tax law contradicts the treaty, the
provisions of the treaty prevail. For full text of all the treaties
III.
Administrative Materials:
In the process of implementing a tax Act, Government clarifies the provisions by way of public
circulars. The Inland Revenue Department publishes Public Circulars regarding Income Tax
Act, Value Added Tax and Excise Act in the national newspapers. Those circulars are put in the
web site
. These circulars are binding on the tax administration. The Department
compiles all the circulars annually and publishes them. This publication is available in
IV.
Case Law :
Decisions on tax cases by the Supreme Court have been compiled and published by Mr.
Sheshraj Sibakoti. This publication is in Nepali language and is available at the following
address:
Gyangun Research Institute
Maitidevi, Kathmandu, Nepal
V.
Periodicals, other books and Information:
Revenue Administration Training Center publishes "RAJASWO" magazine in every four
months. This Magazine covers articles on revenue and tax matters. This is available at the
following address:
Revenue Training Center,
Pulchouk,
Lalitpur, Nepal
Many writers have published books on the Nepali Tax System. A few are listed below.
VAT and it's relevancy to Nepal- 1997 Author : Dr. Rup Khadka
Publisher : Ratna Pustak Bhandar,
Kathmandu, Nepal
Income Taxation in Nepal
Retrospect & Prospect-2001
Author : Dr. Rup Khadka
Publisher : Ratna Pustak Bhandar,
Kathmandu, Nepal
The Nepalese Tax System – 2000
Author : Dr. Rup Khadka
Publisher : Sajha Publications,
Kathmandu, Nepal
VAT in Nepal – 2001
Author : Dr. Rup Khadka
Publisher : UPS Publishers,
New Delhi, India
Municipal Finance in Nepal
Retrospect & Prospect-2002
Author : Dr. Rup Khadka
Publisher : CEGG,
Kathmandu, Nepal
VAT: Four years of Implementation-2001
Retrospect & Prospect-2001
Edited by : Dr. Rup Khadka
Publisher : Inland Revenue Department,
Kathmandu, Nepal
Value Added Tax (VAT): A Nepalese experience-1999
Author : Narayan Silwal
Property Tax in Nepal: Theory and Practice - 1994
Author : Dr. Badri Pokhrel
Publisher : Revenue Training Center,
Pulchouk: Lalitpur, Nepal
Taxation in Nepal: Planning and Management -1999
Author : C.M.Adhikari
Publisher : Shristi Publication,
Chabhill : Kathmandu, Nepal
Value Added Tax in Nepal : Theory and Practice
Author : C.M.Adhikari
Publisher : Pairavi Prakasan,
Putalisadak,Kathmandu, Nepal
Value Added Tax -1999
Author : Binod Acharya
Publisher : Kalas Finance,
Lalitpur, Nepal
Corporate Tax Planning in Nepal – 1998
Author : Karna B. Poudyal
Modern Income tax system in Nepal-2003
Author : Vidyadhar Mallik
Present tax system in Nepal-2003
Author : Puspa Raj Kadel
Publisher : Buddha Academic Enterprises pvt. Ltd.,
Putalisadak, Kathmandu, Nepal
For more Information about Inland Revenue Department, Tax laws, Tax Manual, Annual Tax
Report, Tax Statistics and other Tax activities
VI.
Tax Collection by the local governments:
Besides the taxes collected by His Majesty's Government, the local governments (District
Development Committee, Municipality and Village Development Committee) are also
empowered to collect House and Land Tax, Property Tax and a few other taxes in the form of
fees. The rate and collection procedure of these Fees and Taxes are subject to their decision.
Prepared by Padmanav Singh Karky, Inland Revenue Department
Ministry of Finance, Kathmandu, Nepal