Finance Bill 2083, decoded for the year ahead.

Revised TDS and advance tax rates, a new individual tax slab, wider exemptions, and a narrower deductible-cash-payment limit.

• Income earned by a resident natural person whose sole income comes from providing software or electronic services, consultancy services, or uploading audio-visual content to social platforms outside Nepal is now treated as final withholding.

• Deduction for insurance premium on private buildings up from Rs 5,000 to Rs 10,000.
• Resident individuals may deduct 25% of annual tuition fees paid for a child's education, or Rs 25,000, whichever is lower.

• CSR expenses deductible up to 1% of taxable income, in the year incurred.
• Sweat equity received by IT-sector employees need not be included in taxable income.
• Deductible donations ceiling raised from Rs 100,000 to Rs 300,000.
• Cash payments over Rs 25,000 per transaction (down from Rs 50,000) are no longer deductible expenses.
• Share and debenture issue costs reclassified as revenue expenditure — deductible immediately rather than capitalised.
• NRB-licensed hire-purchase companies may claim loan-loss provisions up to 5% of outstanding loans, including written-off loans and non-banking assets.

• Gains on private land/buildings donated to government (federal, provincial or local) by a natural person.
• Interest on Nepal debt investments earned by a not-for-profit financial institution wholly owned by a foreign government.
• Income of drinking-water and sanitation consumer organisations registered under the Water Resource Act, 2049, for their stated objectives.
• Income of universities registered and operating in Nepal, for their stated objectives.
• Interest on deposits with microfinance institutions, rural development banks, postal bank, and cooperatives — taxable only above Rs 25,000.
• Cinema halls built outside metropolitan/sub-metropolitan areas: 10-year tax holiday from commencement of commercial operation.

A formal international-transaction definition, a genuine safe harbour, and Nepal's first Advance Pricing Agreement framework.

• Now covers any dealing in goods, services, finance, or intangible property with a non-resident that affects income, expenses, assets or liabilities.

Available to taxpayers with turnover up to NPR 1 billion, for at least 5 income years unless there's a substantial change. IRD will issue implementation guidelines.

• IRD may enter bilateral or multilateral APAs for international transactions between associated enterprises.
  • Agreed pricing treated as arm's length for up to 5 years
  • Rollback allowed up to 4 preceding years
  • Binding unless law or key terms materially change
  • Void ab initio if obtained through fraud, misstatement, or misrepresentation

Sharper e-invoicing penalties, more IRD data access, and two changes worth flagging on audit and refund timelines.

• "Agricultural business" now expressly covers crops, horticulture, livestock, aquaculture, and apiculture.
• IRD interpretations issued via public circulars are now final — mirrored in the VAT Act, 2052.
• Invoices are formally recognised as mandatory tax records taxpayers must maintain.
• IRD may define e-invoicing procedures and mandate e-invoices through approved systems beyond CBMS integration — mirrored in the VAT Act, 2052.
• IRD can access financial data electronically from any person or entity holding relevant records in Nepal Section 82A.

New collection duties for ride-hailing platforms, a friendlier e-payment discount, sharper penalties, and a reshuffled exempt schedule.

• Resident ride-hailing platform operators must assess and collect 5% VAT from service providers on passenger transport, cargo and delivery transactions, at each instance — effective Shrawan 1, 2083. The same 5% applies to electricity for final consumers.
• Taxpayers who filed VAT returns on time may amend within 7 days to correct errors, per IRD procedure.
• The 10% VAT benefit on electronic payments moves from a refund model to an immediate discount at billing stage — an effective discount of roughly 1.3%.
• VAT deduction by government entities and its refund provision under contracts is removed Section 25C repealed.

A lighter mislabelling penalty, faster investigation timelines, a new advance-ruling fee, and tighter rules on export/import codes.

• Decisions by a customs officer that a person disputes may now go to an administrative appeal review.
• Investigating officers must complete investigation and file the case within 25 days of arrest.
• Applying to the Director General for an advance ruling now carries a Rs 3,000 fee.
• Cancelling an export/import code now requires an application plus the renewal fee — previously, a missed renewal cancelled the code automatically.
• Vehicles knowingly used for smuggling or illegal import/export: fines up to Rs 10,000 (carts, horse-carts, handcarts, rickshaws, bicycles — owner and driver) and up to Rs 20,000 (scooters and motorcycles).

• Silver: up to 500g at prevalent rate.
• Silver ornaments: first 500g duty-free, next 500g at prevalent rate, anything beyond is confiscated.

• A discount is now allowed to industry selling wine, beer, tobacco and nicotine products to VAT-registered buyers.
• Microbreweries must pre-pay monthly excise based on installed capacity yield rate Section 4(1)(a).

The single largest piece of the Bill — waivers of interest, fees and penalties across every tax head, each tied to a hard 2083 deadline.

• Persons without a PAN can obtain a waiver of interest and filing fees by registering for PAN and filing returns for FY 2079/80–2082/83 within Poush 2083. No filing or payment required for years before FY 2079/80.
• PAN holders with no business activity may regularise or cancel their PAN without filing prior years' returns, provided the FY 2082/83 return is filed within Poush 2083.
• PAN holders who failed to file returns may obtain a waiver of interest and fees by filing outstanding returns and paying tax + 1% by end of Poush 2083.

• Outstanding VAT, income tax or excise duty up to Jestha 15, 2083 (where returns were filed): waiver of interest, penalties, surcharges and late fees on paying tax + 1% within Poush 2083.
• Amounts arising from prior IRD assessments: settle at assessed amount + 1% by end of Poush 2083 for a full waiver of penalties, interest, fees and late charges — except the telecom sector.
• Pending disputes withdrawn and paid by end of Poush 2083 similarly receive a full waiver, including cases appealed to the Supreme Court or awaiting re-assessment. Telecom service providers are excluded from this litigation settlement route.

• Nepali citizens/residents working for the UN, international organisations or diplomatic missions — without diplomatic exemption but who missed tax or filings for FY 2079/80–2082/83 — can regularise by taking a PAN, paying tax + 1%, and filing returns by end of Mangsir 2083. Nothing is owed for periods before that.
• Universities, diplomatic missions, development partners and non-resident investors are exempt from filing income tax returns up to FY 2082/83 (advance tax obligations still apply).
• Non-profits whose founding charter (Bidhan) sends residual property to the Government of Nepal on dissolution: filing the FY 2082/83 return by end of Poush 2083 waives tax, interest and fees on income from donations, contributions and gifts. If donations/gifts are the only income, no return is even required.
• Community schools and health institutions: waiver of prior years' tax, interest and penalties on filing the FY 2082/83 return.
• Contributions to the National Reconstruction Fund are now tax-deductible.

• Companies that failed to file returns, renew registration, or pay tax — whether continuing operations or deregistering — can obtain a waiver of historical tax, fees, charges, interest and penalties by paying everything due and filing returns within Ashwin 2083, under FY 2082/83 rules.

• VAT: registered persons who failed to collect/deposit VAT, or collected but didn't file, get a full waiver of interest, fees and penalties by filing up to 2082 Chaitra and paying VAT due + 1% by end of Poush 2083.
• Excise: defaulters paying self-assessed dues + 1% by Poush 2083 get a full waiver of fines and late fees.
• Excise licences: lapsed holders renewing by Ashoj 2083, paying only the 2082/83 renewal fee, have all other outstanding fees and penalties waived.
• Customs — post-clearance audit: importers with unpaid post-clearance duties up to Baisakh 2083 (or pending court cases) who settle all customs, excise and VAT dues by Poush 2083 get a complete waiver of fines and interest.
• Shipping containers: long-standing containers may be removed fee- and demurrage-free on application by end of Mangsir 2083.
• Bonded warehouse / passbook facility: guarantees or deposits on imported raw materials can be released or refunded once finished goods are exported, foreign currency received, and documentation filed by end of Mangsir 2083.

Targeted relief for businesses that suffered inventory loss or property damage during the Gen-Z movement.

• Business loss relief: self-declare VAT within 30 days, backed by a loss-assessment affidavit, to claim uninsured inventory lost during the protests as a deductible expense under the Income Tax Act, 2058 — plus credit for VAT already paid on the damaged inventory.
• Reconstruction incentives: a 50% exemption on Customs Duty and Excise Duty for machinery, equipment, furniture and other items needed to restore damaged businesses.
• Casino relief: royalty and renewal fees waived for the periods casino operations were disrupted by movement-related damage.

Standalone relief for hydropower and the gold, silver and gems trade.

• Projects whose capacity or design has changed can import required equipment against a bank guarantee for applicable taxes, on the NEA's recommendation.

• Luxury Duty on gold/ornaments and VAT on diamonds, gems and precious stones outstanding before 2082 Bhadra 2 are waived.
• Gold, silver and craft manufacturers who failed to collect VAT up to FY 2082/83 receive a full waiver of tax, interest and penalty.

Legacy dues under repealed and older laws are closed out — some fully, some at a fixed penalty rate.

• Outstanding excise duty under the Excise Act, 2015, plus Sales Tax, Hotel Tax, Entertainment Tax and Contract Tax, are waived.
• Income tax arrears assessed under the Income Tax Act, 2031 may be written off where the taxpayer never obtained a PAN and never carried on income-generating activity.
• Taxpayers with unpaid/underpaid tax, or pending court cases they withdraw, get a full waiver of penalties, interest and fees by paying the outstanding amount + 1% by end of Mangsir 2083.
• Casinos with unpaid royalties or lapsed licences may renew by paying a 15% penalty; cases already in court are resolved by the court.