Nepal

Southern Asia · NP · 11 treaties

Tax profile

What makes you a tax resident — and how hard it is to stop being one.

• habitual (normal) place of abode is in Nepal for the income year
• present in Nepal for 183 days or more during a continuous period of 365 days that falls in whole or in part in the income year
• employee of the Government of Nepal deputed to a foreign country at any time during the income year

Tax residence is based on physical presence, habitual abode, or government deputation; once a person leaves Nepal so that their normal place of abode is no longer in Nepal, is not deputed abroad by the Government of Nepal, and they no longer meet the 183‑day test in any relevant 365‑day period, tax residency ceases without multi‑year tail rules or domicile‑based taxation.

Source: Inland Revenue Department / Income Tax Act, 2058 (as summarized by Baker Tilly Nepal)

Tax treaty network (11)

In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.