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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital duty No No
Payroll tax No There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees.
Social Security Employer Contribution 10% Employers are required to contribute 10% of gross salary of employees to the provident fund.
Social Security Employee Contribution 10% Employees are also required to make a 10% contribution to the provident fund, which is withheld by the employer.
Stamp Duty Varies depending on the documents, transactions Stamp duty is applicable on property transactions, stampable transactions and certain types of documents and rate varies depending on the transaction/ document.
Transfer Tax Varies depending on value and location of property Transfer tax or 'Land Registration Tax' is levied on sale or transfer of real estate property or the ownership rights in the property.
Property Tax (Real property) 0.05% - 1.5% of market value of property Property tax or 'Urban House and Land Tax' is levied annually on the owner of the real estate property. The property tax ranges from 0.05% to 1.5% of the market value of the property.
Custom Duty 0% to 80% Custom duties are levied on products imported into Nepal.
Excise Tax 0% to 100% Excise duties are levied on limited number of goods produced or imported in Nepal. The rates vary depending on the type, volume and quantity of the product. Additionally, a new Health Hazard Tax applies from 2018 with respect to tobacco products.
Telecommunication Service Charge 13% (up from 11% from 2018) Charged by telecommunication providers to users and remitted to Treasury.