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What are Building Permits in Nepal? Building permits in Nepal are official approvals issued by local government authorities that allow property owners to legally construct, renovate, or modify buildings and structures. These permits ensure that proposed construction projects comply with national building codes, zoning regulations, and safety standards. In Nepal, building permits are...

What is VAT Registration? Value Added Tax (VAT) registration is the process by which businesses in Nepal register with the Inland Revenue Department (IRD) to collect and remit VAT on their sales of goods and services. VAT registration provides businesses with a unique VAT registration number that must be used on invoices and tax filings. The VAT registration process ensures businesses are...

What is Corporate Tax? Corporate tax in Nepal refers to the tax levied on the profits earned by companies and other business entities operating in the country. It is a direct tax imposed on the taxable income of corporations and is governed by the Income Tax Act 2058 (2002). The corporate tax system in Nepal follows a self-assessment model, where companies are required to calculate...

Tax law for foreign companies in Nepal is governed primarily by the Income Tax Act 2058 (2002) and its associated regulations. Foreign entities looking to operate in Nepal must navigate a complex system of direct and indirect taxes, as well as comply with various registration and reporting requirements. The standard corporate tax rate for foreign companies in Nepal is 25%, though certain...

The tax structure in Nepal consists of direct taxes like income tax and property tax, as well as indirect taxes such as value added tax (VAT) and customs duties. The Income Tax Act 2002 serves as the primary legislation for income taxation in Nepal, supplemented by annual Finance Acts that may introduce changes to tax rates and provisions. The tax system in...

Tax audits are an essential part of Nepal’s tax administration system, helping ensure compliance with tax laws and regulations. This article provides a comprehensive overview of tax audits in Nepal, including the types of audits, procedures, requirements, and key considerations for taxpayers. What is Tax Audit? A tax audit is an examination of an individual or organization’s...

1. Introduction to UNCITRAL and Arbitration in Nepal 1.1. The United Nations Commission on International Trade Law (UNCITRAL) has extended Arbitration Practices worldwide, including Nepal. Established by the United Nations General Assembly in 1966 through Resolution 2205(XXI), UNCITRAL’s primary mandate is to promote the progressive harmonization and unification of international...

1. Purpose and Scope of the Arbitration Act The Arbitration Act, 2055 (1999) was enacted to modernize and update Nepal’s legal framework for arbitration. The preamble states that the Act aims to “make legal provision on arbitration” in order to facilitate the efficient resolution of disputes outside the traditional court system. Some key objectives of the Act...

Introduction to Arbitration in Nepal Arbitration has emerged as a preferred method of alternative dispute resolution in Nepal, especially for commercial and business-related conflicts. As a process that allows parties to resolve disputes outside of the traditional court system, arbitration offers flexibility, confidentiality, and often a quicker resolution compared to litigation. In Nepal,...