On 12 November 2025 (26 Kartik 2082), the Government of Nepal issued its first formal notification under Section 3(4) of the Income Tax Act 2002 to seven countries with which Nepal has pre-2002 Double Taxation Avoidance Agreements.

What are considered digital services under Nepal's new Digital Service Tax (DST) procedure?

The taxation of mergers and acquisitions (M&A) in Nepal is governed by the Income Tax Act, 2058 (2002) ("Income Tax Act") and the Income Tax Rules, 2059 (2002) ("Income Tax Rules")

The Government of Nepal has formally terminated the Double Taxation Avoidance Agreement ("DTAA") signed with the Republic of Mauritius on 3 August 1999.

In the landmark ruling of Dish Media Network Limited vs. Revenue Tribunal Kathmandu et al. Writ No. 080-WO-0380, January 18, 2024 (2080/10/05 B.S.) (“Dish Home Case,”) the division bench of the Supreme Court of Nepal established a vital precedent bridging the gap between special tax statutes and general civil procedures. The bench, comprising Honorable Justices Dr. Manoj Kumar Sharma and Mahesh Sharma Paudel, ruled on whether administrative tax deadlines can completely bar a company’s access to justice during a medical crisis.

Many taxpayers in Nepal make two costly mistakes: thinking an assessment or decision is final and believing they can talk their way out of it. In reality, once the tax office initiates a tax action—whether for income tax, VAT, or excise duty—it triggers a formal legal process.

As per the IRD Notice, preference shares will not be included in calculating the 50% ownership change threshold under Section 57 unless those preference shares carry voting rights.

Nepal has introduced a statutory Safe Harbour framework for transfer pricing through the amendments made by the Finance Act, 2083 to the Income Tax Act, 2058. The new provision, Section 33A, establishes prescribed conditions under which eligible taxpayers can determine the transfer price of specified transactions by applying the statutory safe harbour benchmarks. The reform adds a more predictable mechanism to Nepal’s existing transfer pricing framework, which is principally governed by Section 33 of the Income Tax Act and the Inland Revenue Department‘s Transfer Pricing Directives, 2024 (2081 BS).