Taxation

Nepal is unique as a tax environment. The taxation system is relatively new, frequently changing and is subject to numerous interpretations by government authorities. This creates an environment where tax compliance is challenging and that tax risk is significantly elevated. Addressing these factors is critical to running a successful business in Nepal.

TBCS’s tax practice is adept at advising clients on the application of Nepalese tax law and on implementing a suitable tax strategy to reduce tax risk to an acceptable level.

The TBCS tax practice works with clients in several key areas:

Whilst suffering taxes is inevitable, strategic tax planning can make the burden considerably easier to bear.

TBCS can assist in ensuring that business operations are structured in the most effective manor so as to provide a tax efficient vehicle for the conduct of business.

Given the unusual nature of the Nepalese tax law, opportunities can readily be found particularly where group structures are in existence for restructuring opportunities to provide significant tax efficiencies.

Companies in Nepal are subject to 2 key forms of tax compliance and are required to submit the following returns to the tax office:

  • Monthly tax returns (VAT, TDS & Others)
  • Annual profit tax return

TBCS provides a fully outsourced approach to tax compliance to ensure that our clients have a solution to tax compliance which reduces tax risk and provides a one stop shop to ensure that all elements of tax compliance are addressed from calculation through to submission and settlement of liabilities.

Our tax team has extensive experience in assisting our clients with Taxation investigations by regulatory authorities. TBCS will liaise with Tax office officials on your behalf to ensure that any reassessment which results is a fair one and that it is provided in accordance with the law on taxation.
Transfer pricing is globally becoming increasingly important issue. Revenue Departments worldwide are targeting transfer pricing arrangements as priority issue and Nepal is no exception. The TBCS tax team can work with you to identify risks and to prepare the documentation necessary to ensure that these are minimized.

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