--- title: "Nepal tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/nepal/tax/ lang: en updated: 2026-10-12 --- # Nepal tax Tax residence: At least 183 days in any continuous 365-day period. Special regime for new residents: Information technology services export: 50% tax reduction. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - At least 183 days in any continuous 365-day period · A natural person present in Nepal for 183 days or more in a continuous 365-day period is resident. - Residence is tested by ordinary place of abode, by presence of 183 days or more in any continuous 365-day period, or by posting abroad by the Government of Nepal. ## Special regimes for new residents Special regime ### Information technology services export: 50% tax reduction Tax relief **Details** Income earned in foreign currency from exporting information-technology based services is taxed at half the normal tax, until fiscal year 2084/85. (source 3) #### Taxed on Income received in foreign currency from exported business process outsourcing, software programming, cloud computing and other IT-based services. #### Who it applies to - A person who exports IT-based services (business process outsourcing, software programming, cloud computing and similar) and earns foreign currency for them. #### Exclusions - The 50% reduction applies only to tax on the income received in foreign currency and only until fiscal year 2084/85. #### Tax residence Applies to persons liable to tax in Nepal on the exported services income. #### Visas Independent of any visa; a work or business route is still needed to work in Nepal. #### Other taxes The Act also gives a 50% reduction on the tax on income from other exports of Nepal-source goods and services. Checked against official sources on 10 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) ## Standard rules and foreign-source income Standard rules ### Personal income tax: 1% on the first NPR 1,000,000, rising to 29% **Details** - Who: A person is resident if the ordinary place of abode is in Nepal - Limit: NPR 1M/yr ≈ $6,520 Resident individuals pay 1% on taxable income up to NPR 1,000,000, (≈ $6,520) then 10% up to NPR 1,500,000, (≈ $9,770) 20% up to NPR 2,500,000, (≈ $16,300) 27% up to NPR 4,000,000 (≈ $26,100) and 29% above that, in income year 2083/84 under the Income Tax Act as amended by the Finance Act 2083. (sources 1, 2, 3) #### Taxed on Taxable income of residents (employment, business, investment) and Nepal-source income of non-residents; a single table now applies to individuals and couples. #### Who it applies to - A person is resident if the ordinary place of abode is in Nepal, if present in Nepal 183 days or more in a continuous 365-day period, or if posted abroad by the Government of Nepal. #### Exclusions - The 1% rate is not charged to taxpayers registered as a sole proprietorship, on pension income, or on the income of a person who contributes to a pension fund or the contribution-based Social Security Fund. - Non-resident individuals pay a flat 25% on taxable income from Nepal. #### Limits - NPR 1,000,000 a year (≈ $6,520) · Upper limit of the 1% band - NPR 1,500,000 a year (≈ $9,770) · Upper limit of the 10% band - NPR 2,500,000 a year (≈ $16,300) · Upper limit of the 20% band - NPR 4,000,000 a year (≈ $26,100) · Above this income the rate is 29% (27% plus 2 percentage points) #### Days in the country - At least 183 days in any continuous 365-day period · A natural person present in Nepal for 183 days or more in a continuous 365-day period is resident. #### Tax residence Residence is tested by ordinary place of abode, by presence of 183 days or more in any continuous 365-day period, or by posting abroad by the Government of Nepal. #### Visas Visa status does not itself decide tax residence; the presence test counts days in Nepal. #### Other taxes Residents may claim a credit for foreign-source income tax paid on assessable foreign-source income, limited to the average Nepali rate; social security and VAT are separate. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and other taxes - Residents may claim a credit for foreign-source income tax paid on assessable foreign-source income, limited to the average Nepali rate; social security and VAT are separate. - The Act also gives a 50% reduction on the tax on income from other exports of Nepal-source goods and services. ## Questions people ask ### When do you become a tax resident in Nepal? At least 183 days in any continuous 365-day period (A natural person present in Nepal for 183 days or more in a continuous 365-day period is resident). Residence is tested by ordinary place of abode, by presence of 183 days or more in any continuous 365-day period, or by posting abroad by the Government of Nepal. ### Who qualifies for Information technology services export: 50% tax reduction? A person who exports IT-based services (business process outsourcing, software programming, cloud computing and similar) and earns foreign currency for them. Independent of any visa; a work or business route is still needed to work in Nepal. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (3)** ## Official sources 1. [Tax rates for natural persons under the Income Tax Act 2058, income year 2083/84](https://ird.gov.np/content/13609/tax-rate-for-natural-persons-for-the/) · Inland Revenue Department, Nepal · checked 2026-10-12 · published 2026-08-07 2. [Finance Act, 2083 (published in the Gazette on 2083/03/30)](https://ird.gov.np/content/13566/economic-act--2083--date-of-publication-in/) · Inland Revenue Department, Nepal · checked 2026-10-12 3. [Income Tax Act, 2058 (as amended by the Finance Act, 2083)](https://www.lawcommission.gov.np/content/13432/income-tax-act-2002/) · Nepal Law Commission · checked 2026-10-11