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The Hon’ble Finance Minister, Dr. Yubaraj Khatiwada presented annual fiscal budget of NRs. 1,315.16 billion (PY 1,278.99 billion) on
Tuesday, Jestha 15, 2075 (May 29, 2018) for the financial year 2075/76 (2018-19) through Finance Bill, 2075.
Recent Labor Act
Amendments Included
FOR USE OF BRSSA TEAM AND ITS CLIENTS
We have taken all steps to ensure that the information contained herein has been obtained from reliable sources and this publication is accurate. However, this
publication is not intended to give legal, tax, accounting or other professional advice. We recommend appropriate advice to be taken prior to initiating action on
specific issues.
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CONTENTS
• Rupees Movement & Deficit Management
• In Brief- Budget Summary
• Commerce & Trade Focus And Allocation
• Tax Rates Applicable For FY 2075/ 2076 (FY 2018/19)
• Husband and Wife having separate income source are given choice to adopt either to get assessed separately or jointly as family.
• Deduction of Life insurance premium paid to Resident or Non-resident Insurance Company, a sum equal to premium paid or NRs. 25,000/- (PY NRs. 20,000/-)
whichever is lower.
• Health insurance premium deduction NRs 20,000/- allowed. .
• Deduction for retirement fund contribution is available @ 1/3rd of salary or NPR 300,000 whichever is lower (IT Rule 21).
• 1% tax (SST) is required to be deposited separately in Revenue Account No.11211.
• Income from Non-chargeable business assets (i.e. land, buildings and shares) is taxable as follows (Capital Gain):
@ 2.5% (if land or land and building held for more than 5 years) and 5% (if up to 5 years) for transaction value exceeding 10 Lakhs. (Earlier 30 Lakhs)
@ 10% on sale of shares of non-listed entity
@ 7.5% (PY 5%) on sale of shares of listed entity
• Tax @ 15.00% (PY @ 20.00%) on income from export and Tax @ 20.00% (PY @ 15.00%) on income from special industry shall be levied on the income on which
30.00% tax would have been charged otherwise.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
PRESUMPTIVE TAXATION
The amount of Presumptive Tax for natural person having income up to Rs 2 Lakh and turnover up to Rs 20 Lakh has been continued, as follows:
TURNOVER TAX RATE APPLICABLE TO NATURAL PERSON UNDER SEC 1(17) OF SCH. 1 TO INCOME TAX ACT, 2002 AS FOLLOWS:
NOTE: Tax as above should be paid in 2 installments. 1st install in Poush End and 2nd Install & Final in Ashad based on actual transaction up to 20th
day of the month respectively.
INDIVIDUALS CONDUCTING BUSINESSLUMP SUM TAX LUMP SUM TAX
FY 2075-76 FY 2074-75
IN THE METROPOLITAN OR SUB METROPOLITAN CITIES 5,000 5,000
IN MUNICIPALITIES 2,500 2,500
ANYWHERE ELSE IN NEPAL 1,500 1,500
INDIVIDUALS CONDUCTING BUSINESSTAX RATE TAX RATE
FY 2075-76 FY 2074-75
PERSON WHO SALES CIGARETTE, GAS BY ADDING
COMMISSION OR PROFIT UP TO 3%
0.25% OF THE TURNOVER OR NRS.
5,000 WHICHEVER IS HIGHER
0.25% OF THE TURNOVER OR NRS.
5,000 WHICHEVER IS HIGHER
PERSON WHO IS ENGAGED IN THE TRANSACTION OTHER
THAN ABOVE
0.75% OF THE TURNOVER OR NRS.
5,000 WHICHEVER IS HIGHER
0.75% OF THE TURNOVER OR NRS.
5,000 WHICHEVER IS HIGHER
PERSON ENGAGED IN SERVICE PROVIDING BUSINESS2% OF THE TURNOVER OR NRS. 5,000
WHICHEVER IS HIGHER
2% OF THE TURNOVER OR NRS. 5,000
WHICHEVER IS HIGHER
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
TAX RATES: NON-RESIDENT PERSON
PARTICULARSTAX RATE TAX RATE
FY 2075-76 FY 2074-75
INCOME EARNED FROM NORMAL TRANSACTIONS 25.00% FLAT 25.00% FLAT
INCOME EARNED FROM PROVIDING SHIPPING, AIR TRANSPORT OR TELECOMMUNICATION SERVICES,
INCOME EARNED PROVIDING SHIPPING, AIR TRANSPORT OF TELECOMMUNICATION SERVICES
THROUGH THE TERRITORY OF NEPAL.2.00% 2.00%
REPATRIATION BY FOREIGN PERMANENT ESTABLISHMENT (PE) 5.00% 5.00%
CAPITAL GAIN TAX ON SALE OF SHARES (WITHHOLDING TAX 25.00% (PY WHT 15.00% PLUS FINAL TAX
10%) SUBJECT TO TAX TREATIES.25.00% 25.00%
DOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA)
To avoid double taxation, Nepal Government has tax treaty with 10 countries namely India, Sri Lanka, Mauritius, Thailand, Qatar, Pakistan, Norway, Korea, Austria &
China. Taxpayer have right to opt the provisions contained in either Nepal Income Tax Act, 2002 or Treaty whichever is beneficial to them.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
TAX RATE: ENTITIES
ENTITIES TAX RATE TAX RATE
FY 2075-76 FY 2074-75
Normal Tax Rate 25.00% 25.00%
Company Operating In The Following Areas Telecom, Internet, Money Transfer, Capital
Gain From Commodities Future Market (Sec 95Ka) 10.00% 10.00%
Contract Payments (Sec.89)*
Payment under contract exceeding Rs.50,000/- 1.50% 1.50%
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
TAX DEDUCTION AT SOURCE (TDS) RATE CHART CONT……. 3
PARTICULARS RATE RATE
FY 2075-76 FY 2074-75
Payment to non-resident person under a contract (Sec 89(3)):
Payment under service contract to Non-resident 15.00% (Final Tax) 15.00% (Final Tax)
Payment under Repair for Airplane & Other contract 5.00% (Final Tax) 5.00% (Final Tax)
Premium paid to non-resident insurance company & Commission
paid against reinsurance premium received from non-resident
insurance company.
1.50% (Final Tax) 1.50% (Final Tax)
Others:
Gain from disposal of interest in Resident Entity (Sec 95 Ka) For
listed securities to
'-Natural Person
'-Resident Entity
'-Other
7.5.00%
10.00%
25.00%
5.00%
10.00%
10.00%
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
TAX DEDUCTION AT SOURCE (TDS) RATE CHART CONT……. 4
PARTICULARS RATE RATE
FY 2075-76 FY 2074-75
Gain from disposal of interest in Resident Entity (Sec 95 Ka) For
unlisted securities to
'-Natural Person
'-Resident Entity
'-Other
10.00%
15.00%
25.00%
10.00%
15.00%
15.00%
Capital gain tax on sales of land and land & building owned by
natural person (Deducted by Malpot Office)
i) For more than 5 years
ii) For less than 5 Years iii)
In Other cases
2.50%
5.00%
10.00%
2.50%
5.00%
10.00%
Work done through Consumer Committee (Upbokta Samiti) if the
amount exceeds NRs. 50 lakhs.1.50% -
ADDITIONAL NOTES:
• NRs. 50,000/- referred to sec 89 shall be determined by aggregating a payment under a contract with any other payment made by the person or an
associate of the person during the previous ten days under the same contract to the same payee or an associate of the payee.
• No TDS is required to be deducted on the following:
• Payment of remuneration to the writer of the articles published in Newspaper & magazines.
• Payment of remuneration for preparation of question paper or checking of answer sheet
• Interregional interchange charges paid to a bank issuing Credit Cards.
• Interest or fee paid by Nepal Govt., under an agreement, to Foreign Govt. or an international organization (to which Nepal is a party).
• Interest and Dividend paid to Mutual Fund
• No Tax need to be deducted while making following Payments:
• Payment of interest to a resident bank or other resident financial institution
• Payments that are exempt from tax
• General insurance premium.
• Withholding tax need to be deposited along with TDS Return with IRD within 25 days from end of month.
• Withholding Tax Certificate should be issued to the person from whom tax has been deducted based on the TDS Return filed with IRO to get the credit for
such withholding tax.
• Delay in submission of Tax or Return will attract penal provision as per the Act. Penalty @ 2.50% p.a. on TDS Amount.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
VAT, EXCISE AND CUSTOM RATES FOR FY 2075/ 2076 (FY 2018/19)
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
Amendments in VAT Act
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
VALUE ADDED TAX (VAT)
• Threshold of VAT on goods remains at NRS 50 Lakhs
• The Threshold for Service and Service and Goods mixed business remains NRS. 20 Lakhs
• VAT Rate remains unchanged at 13.00%
MAJOR AMENDMENTS IN VALUE ADDED TAX (VAT)
• VAT refund facility withdrawn for following: mobile set, flour, match, vegetables ghee, mustered oil, sugar, textile, copper, dairy, tea etc. has been withdrawn.
• Hostel and Canteen Service provided by the Educational Institutions for its own purpose has been exempted from VAT registration. Also, VAT on these services
assessed by tax office earlier has also been waived.
• Business of Money Transfer, Capital Market, Stock Exchange, Merchant Banking, Commodity Future Market, Stock & Commodity Broker are also exempted from
VAT. Further, Vat on Share broker assessed by tax office earlier has also been waived.
• No VAT for 1 Bus of Community School, 30 seater.
Aggregate Industries are brought under VAT bracket
• Business of Hardware, Sanitary, Furniture, Fixture, Furnishing, Automobiles, Motor Parts, Electronics, Marble, Educational Consultancy, Discotheque, Health Club,
Massage Therapy, Beauty parlor, Catering Service, Dry clean service, Restaurant with Bar, Ice cream Industries, Tailoring business with Suiting & Shirting, Suppliers
of Uniform to Educational Institution & Health Institute operating in Metropolitan City, Sub-Metropolitan City, Municipality, or any other area specified Department are
mandatorily required to registered in VAT.
• Telecommunication service fee 13% to be collected by Telecom Companies (Telephone, Mobile, Internet Service Provider) (Previous year rate was 11%).
• Casino Royalty: Annual Royalty Rs.4 Crore (Previous Year Rs. 3 Crore) but if gaming is by Modern Machine and Equipment only, then Rs. 1 Crore (Last year Rs. 75
Lakhs) shall be paid by each casino.
FINE & PENALTY
• Invoice raised without delivering goods and rendering services attract penalty @ 50% of invoice value.
• Non Compliance of Electronic Billing directive – 5 lakhs.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
Amendments in Excise Act
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
EXICSE
• Excise Duty has been introduced in cosmetic items, mobile phones, home appliances such as mixers, juicer, refrigerator,
vacuum cleaners, iron and non-alloy products .
• 25% Rebate on Excise Duty for unassembled vehicles in condition at the time of import for the Industries engage in assembling
the vehicles. Moreover, some percentage of rebate is also enjoyable on sale of such assembled vehicle.
• 100% Excise Duty is exempted on domestic production of Marbles and lid acid battery.
• Excise Duty increased in Beverages, Tobacco and cigarettes, alcohol & Beer, cement, paint, vehicles.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
PRODUCTSEXCISE RATE EXCISE RATE
FY 2075-76 FY 2074-75
Katha Ras (1404.90.10) Rs. 15 / Kg Rs. 10 / Kg
Khayar Katha (1404.90.20) Rs. 140 / Kg Rs. 115 / Kg
Jaggery (1701.13.10) Rs. 115 / Kg Rs. 90 / Kg
Molasses (Hc1703.10.00) Rs. 70 / Kg Rs. 55 / Kg
Chewing Gum (Hc 1704.10.00) 10% -
Other Sweets (Not Containing Coco) 1704.90.00 5% -
Items Containing Chocolates & Coco (Hc 1806) 5% -
Potato Chips (1905.90.20) Rs. 15 / Kg Rs. 7.5 / Kg
Dalmoth, Papad, Namkin Bhujia (Hc2106.90.10) 5% -
Pan Masala (No Tobbaco) (Hc2106.90.20) Rs. 555/Kg Rs. 462/Kg
Kurkure, Kurmure, Lays (Hc2106.90.60) Rs. 15 / Kg Rs. 7.5 / Kg
Sugandhit Supari (No Tobbaco) (2106.90.70) Rs. 205 / Kg Rs. 171 / Kg
All Types Of Juice (Hc2009.11.00-90) Rs.10/ Litre Rs.4.50/ Litre
Iron Or Ispat Chain & Parts (Hc 7315) Rs. 1500 /M.T -
Refrigerator , Freezer (Hc 8418) 5% -
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
AMMENDED EXICSE TAX RATE
PRODUCTSEXCISE RATE EXCISE RATE
FY 2075-76 FY 2074-75
Vaccum Cleaners & Parts (Hc 8508) 5% -
Mixers, Juicer, Grinder & Parts (Hc 8509) 5% -
Motorbikes 150 Cc To 250 Cc (8711.30.99) 50% 40%
Motorbikes 250 Cc To 500 Cc (8711.30.90) 60% 40%
Motorbikes 500 Cc To 800 Cc (8711.40.00) 80% 40%
Motorbikes Above 800 Cc (8711.50.00) 100% 40%
Spares Parts Of Motorcycle (Hc 8714) 5% 5%
Car, Station Wagon, Racing Car Above 1000 Cc Upto 1500 Cc (Hc 8703.22.00) 65% 60%
Car, Station Wagon, Racing Car Above 1500 Cc Upto 2000 Cc (Hc 8703.23.10) 70% 60%
Car, Station Wagon, Racing Car Above 2000 Cc Upto 2500 Cc (Hc 8703.23.20) 80% 60%
Car, Station Wagon, Racing Car Above 2500 Cc Upto 3000 Cc (Hc 8703.23.30) 90% 60%
Car, Station Wagon, Racing Car Above 3000 Cc (Hc 8703.23.30) 100% 60%
Car, Station Wagon, Racing Car (Diesel) Above 1500 Cc Upto 2000 Cc (Hc 8703.32.10) 70% 60%
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
AMMENDED EXICSE TAX RATE
PRODUCTSEXCISE RATE EXCISE RATE
FY 2075-76 FY 2074-75
Car, Station Wagon, Racing Car (Diesel) Above 2000 Cc Upto 2500 Cc (Hc 8703.32.20) 85% 60%
Car, Station Wagon, Racing Car Above 2500 (Diesel) ( Hc 8703.33.00) 100% 60%
Micro Bus 11-14 Seater (H. Code 8702.10.30) 55% 55%
Double Cab Pick Up (H. Code 8704.21.10) 60% 60%
Three Wheeler (Auto Rickshaw) (H. Code 8703.21.10) 55% 55%
Single Cab Pick Up (H. Code 8704.21.20.10) 50% 50%
Delivery Van (H. Code 8704.21.20.20) 30% 30%
Mini Bus 15-25 Seater (H. Code 8702.10.20, 8706.00.20) And Chassis 35% 35%
Bus & Truck (H. Code 8702.10.10 & 8702.90.10) 5% 5%
Video Games, Consoles (Hc 9504) 5% -
Amendments in Custom Act
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
AMMENDED CUSTOM RATE
HS CODE PRODUCTSCUSTOM RATE CUSTOM RATE
FY 2075-76 FY 2074-75
Milk and cream, concentrated or containing added sugar or other sweetening matter.
0402.10.00 In powder, granules or other solid forms, of a fat content,
by weight, not exceeding 1.5% 30% 20%
0402.21.00 Not containing added sugar or other sweetening matter 30% 20%
0402.29.00 Others 30% 20%
0402.91.00 Not containing added sugar or other sweetening matter 30% 20%
Butter and other fats and oils derived from milk; dairy spreads.
0405.10.00 Butter 30% 20%
0405.20.00 Dairy spreads 30% 20%
0405.50.00 Other 30% 20%
Pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or of the genus Pimenta.
0904.11.00 Neither crushed not ground 10% 5%
0904.12.00 Crushed or ground 10% 5%
Soyabean oil and its fractions, whether or not refined, but not chemically modified.
1507.10.00 Crude oil, whether or not degummed 10% 5%
1507.90.00 Other 15% 10%
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
AMMENDED CUSTOM RATE
HS CODE PRODUCTSCUSTOM RATE CUSTOM RATE
FY 2075-76 FY 2074-75
Palm oil and its fractions, whether or not refined, but not chemically modified.
1511.10.00 Crude oil 10% 5%
Sunflower-seed, safflower or cotton-seed oil and fraction thereof, whether or not refined, but not chemically modified.
1512.11.00 Crude oil 10% 5%
1512.19.00 Other 15% 10%
Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified.
1514.19.00 Other 15% 10%
1514.99.10 Of Canola (Rapeseed) 15% 10%
1514.99.90 Other --Other: 15% 10%
Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically
modified
1515.21.00 Crude oil 10% 5%
1515.29.00 Other 15% 10%
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
AMMENDED CUSTOM RATE
HS CODE PRODUCTSCUSTOM RATE CUSTOM RATE
FY 2075-76 FY 2074-75
Cane or beet sugar and chemically pure sucrose, in solid form.
1701.12.00 Beet sugar 30% 15%
1701.13.10 Sakhhar (Gud 30% 15%
1701.13.20 Khanda sugar 30% 15%
1701.13.90 Other 30% 15%
Food preparations not elsewhere specified or included.
2106.90.10 Dalmott, Papad, Salted, Bhujyia and Chamena 20% 15%
Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured,
and other non-alcoholic beverages, not including fruit or vegetable juices of Heading 20.09
2202.99.10 Energy Drinks 30% 30%
2202.99.90 Others 30% 30%
Unmanufactured tobacco; tobacco refuse
2401.10.00 Tobacco, not stemmed/stripped 20% 15%
2401.20.00 Tobacco, partly or wholly stemmed/stripped 20% 15%
2401.30.00 Tobacco refuse 20% 15%
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
AMMENDED CUSTOM RATE
HS CODE PRODUCTSCUSTOM RATE CUSTOM RATE
FY 2075-76 FY 2074-75
Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of
Heading 70.10 or 70.18).
7013.91.00 Of lead crystal 20% 15%
7013.99.00 Others 20% 15%
7020.00.00 Other articles of glass. 20% 15%
Primary cells and primary batteries
8506.90.00 Parts 15% 5%
Electric accumulators, including separators therefor, whether or not rectangular (including square).
8507.90.00 Parts 15% 5%
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
NOTES
• Arrangements have been made to the Nepal-based authorized dealers of the vehicle importers to publish mandatorily the maximum retail price of the vehicles in the
national-level daily newspaper in every 4 months, and undertake continuous monitoring of the same.
• Import Duty of NRs 2,000 per day to be levied in case Trucks entered into Nepal importing goods from foreign countries, trailers with loaded and empty containers
intended to load goods from the place other than customs area, if such Truck and Trailers fails to returns back within 48 hours from the time of entry to Nepal.
• Import duty has continued to be 20% on unassembled television parts, semi LCD & LED panel, Picture tube etc., under HS Code 8528.72.00 imported by Television
Assembling Company.
• Cooperatives & Companies established as public transport operator intended to purchase at least 5 buses of 40 seat or more for the specified purpose, only 5%
import duty levy on buses & chassis of buses. However, if such vehicles are sold or transferred within 10 years from the date of acquisition to any person other than
public transport operator registered as cooperatives or Companies, full custom duty shall be recovered. Further, Road Construction & Development tax also waived
for such vehicles.
• In case of Ambulance and Dead Body Carrying Vehicle imported by private hospital, on recommendation of Ministry of Health and Population of Nepal, custom duty
is charged at 1%.
• For one Ambulance and one Dead Body Carrying Vehicle – for hospital having less than 100 beds.
• For two Ambulances and one Dead Body Carrying Vehicle– for hospital having more than 100 beds
• Rebate of 50% custom duty on the import of either of two no. of Luxury Coach, Micro bus and Mini bus is allowed to the Travel Agents, Trekking Agency, Rafting
agency, Star hotels and resort on the recommendation of Tourism and Civil Aviation Ministry continues.
• Import of Gold by Passenger returning from abroad:
• First 50 gm – NRs. 5200/- per 10 gm
• Next 50 gm- NRs. 6200/- per 10 gm
• Import above 100 gm shall considered illegal and will be confiscated.
• Goods imported from INDIA via LC for good manufactured in India 5 % discount in custom rate for custom rate 5% - 30% and 3%discount above 30%.
• Goods imported from CHINA via LC for good manufactured in China 5 % discount in custom rate for custom rate 5% - 30% and 3%discount above 30%.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
ROAD CONSTRUCTION FEES DURING REGISTRATION OF VEHICLES
PARTICULARSFEES FEES
FY 2075-76 FY 2074-75
Car, Jeep, Van, Microbus, Bus,
7% 7%Truck, Tipper, Mini-bus, Mini
Truck, Mini Tipper
Upto 2000 Cc Car, Jeep, Van 8% 7%
Above 2000 Cc Car, Jeep, Van 10% 7%
Motorbike Upto 125 Cc - NRs. 15,000 NRs. 10,000
Motorbike Of 126-150 Cc NRs. 15,000 NRs.12,000
Motorbike Of 151-250 Cc NRs. 18,000 NRs.12,000
Motorbike Up To 251-400 Cc NRs.50,000 NRs.15,000
Motorbike Above 401 Cc NRs. 200,000 NRs. 20,000
ADDITIONAL NOTES:
• 50% on road construction fees is waived on Electric Vehicle, 2 wheeler up to 1500 watt it will be considered as 150 CC and above 1500 watt it will considered in 151
to 250 cc bracket.
• 50% on road construction fees is waived on electric, solar and battery operated vehicles.
• No Road construction fees to 2 wheeler made for disables people up to 150 cc.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
YEARLY VEHICLES TAX FOR PUBLIC VEHICLE
PUBLIC VEHICLES FY 2075/76 FY 2074/75
Car, Jeep, Van, Micro Bus
Up to 1300 CC 4000 8,000
1301-2000 CC 4500 9,000
2001-2900 CC 5000 11,000
2901-4000 CC 6000 13,000
Above 4000 CC 7000 15,000
Dozer, Excavator, Loader, Roller, Tripper, Crane, Gas Bullet, Oil Tanker,
Health Service Tax Tax On Education Fees Tax on Movie Ticket
• VAT on Health Service withdrawn from
01.04.2075.
• Health Service tax withdrawn from
01.04.2075.
• Community Health Service Providing
institution to get rebate 20% on tax rate.
• Health Risk Tax imposed on cigarrate,
Tobacco, Pan Masala 25 Paisa per pcs, 25
Paisa per pcs, 25 per kg respectively from
15.02.2075.
• Education Service tax withdrawn from
15.02.2075
• Education Service tax for outgoing (abroad)
students increased from 1% to 2% w.e.f.
15.02.2075
• VAT registration withdrawn for canteen
service & hostel of educational institution.
• Tax on movie ticket imposed (Other than
Nepali movie) @ 15.00% per ticket (non
cabin cinema hall) & 20.00% per ticket
(Cinema hall with cabin).
• 50% student discount in morning 8 a.m.
show on Saturday and on public holidays.
NEW PROVISIONS INTRODUCED BY FINANCE BILL, 2075
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
NO Disclosure Required Compulsory Conversion Micro Entrepreneur Industries
• NO disclosure for source of Income required
for money invested in development project
of National pride or entity employing more
than 300 employees or for manufacturing
company using more than 50 % of its RW
from domestic market.
• Company involved in manufacturing
activities having paid up capital 100 Crore or
more to be converted into public company
and get listed in stock exchange.
• 5 Years tax exemption for micro
entrepreneur.
• 7 Years tax exemption for micro
entrepreneur if run by women.
NEW PROVISIONS INTRODUCED BY FINANCE BILL, 2075
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
IMPORTANT DEADLINES THIS YEAR
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
PARTICULARS TAX PAYMENT RETURNS FILING DUE DATE REMARKS
Income TaxAnnual* (Advance tax
schedule is given below)Annual Ashoj End
VAT Returns Monthly Monthly25th of every
Month
Tax Liability for the month is to be paid within 25th of
subsequent month
Excise Returns Monthly Monthly25th of every
Month
Tax Liability for the month is to be paid within 25th of
subsequent month
E-TDS Returns Monthly Monthly25th of every
Month
Tax Liability for the month is to be paid within 25th of
subsequent month.
Tax on Movie
Ticket Monthly Monthly
25th of every
Month
Tax Liability for the month is to be paid within 25th of
subsequent month
IMPORTANT DEADLINES THIS YEAR
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
ADVANCE TAX IS TO BE DEPOSITED AS FOLLOWS:
PARTICULARS DUE DATE QUANTAM OF TAX
1st Installment Poush End 40 percent of the total estimated tax liability for the year
2nd Installment Chaitra End 70 percent of the total estimated tax liability for the year
Final Installment Ashad End 100 percent of the total estimated tax liability for the year
VARIOUS OTHER DUE DATE UNDER COMPANY ACT
Annual Audit within 6 Month of Close of FY
AGM within 6 Month of Close of FY
AGM within 6 Month of Close of FY
Annual Return Filing – Public Co. within 30 Days from AGM Date
Annual Return Filing – Private Co. within 6 Month of Close of FY
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
IMPORTANT AMMENDMENTS IN LABOR LAWS
Applicability
The New Labor Act is applicable to entity, which has been defined to include company, private firm, partnership firm, cooperatives, association or
other organization ("entity") in operation, or established, incorporated, registered or formed under prevailing laws to undertake industry or business
or provide service with or without profit motive.
Head Count Threshold
The New Labor Act has removed the head count requirement for applicability. The New Labor Act is applicable to all entities regardless of number of
labors (worker/ employees). Previous Act was applicable only to entity where ten (10) or more people engaged in the work.
However, the threshold of head count continues for certain arrangements to be made in the entity such as an entity having ten (10) or more workers
should constitute a collective bargaining committee, labor relations committee etc.
Exempted Entity
The New Labor Act is not applicable to civil service, armed force etc. It is also not applicable to entities incorporated under other prevailing laws or
special economic zone, provided that terms and conditions of services in those entities have been covered in other prevailing laws. The Working
Journalists are also not governed by the New Labor Act, unless the employment contract specifically provides for the applicability of the New Labor
Act.
The New Labor Act does not specifically provide its application to the persons working with the foreign diplomatic missions. The foreign missions are
exempt from local laws and jurisdiction which of course may be extended to the employment matters in Nepal.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
IMPORTANT AMMENDMENTS IN LABOR LAWS
Probation Period
The New Labor Act has shortened the probation period as shown in the table below
Leave & Holidays
There have been major changes in maternity leave, sick leave and accumulation of leave in the New Labor Act. It also provides additional category
of leave such as paternity leave which was not there in the Previous Act. The comparison of leave is given in the following table.
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
PREVIOUS ACT NEW LABOR ACT
1 year (240 days) 6 months
HEADING PREVIOUS ACT NEW LABOR ACT
Weekly Off 1 day every week 1 day every week
Public Holidays 13 days
13 days
14 days including International Women Labor Day for female
employees
Home Leave 1 day for every 20 worked days 1 day for every 20 worked days
Sick LeaveHalf paid up to 15 days
Eligibility: completion of 1 year of service
Fully paid up to 12 days
Eligibility: on a proportional basis for those employees who has not
completed 1 year of service
IMPORTANT AMMENDMENTS IN LABOR LAWS
Leave & Holidays
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
HEADING PREVIOUS ACT NEW LABOR ACT
Maternity Leaveup to 52 days
fully paidup to 14 weeks, fully paid for 60 days
Paternity Leave No up to 15 days, fully paid
Mourning Leave 13 days 13 days
Leave in lieu No For the laborers put in work on public holiday or weekly off
Special Leave30 days in a year, not exceeding 6 months in
total service period-unpaidNo
Accumulation Home Leave - Up to 60 days
Home Leave- 90 days
Sick Leave- 45 days
Excess Accumulation- Encashed every year.
IMPORTANT AMMENDMENTS IN LABOR LAWS
Terminal Benefits
There have been also major changes in the terminal benefit provided to the employees such that the benefits are provided to each laborers
irrespective of length of service or nature of employment. The Previous Labor Act provided the terminal benefits to the permanent employee and for
certain benefits such as gratuity the employee should have completed certain year of services. The eligibility criteria have been removed by the New
Labor Act. The benefits have been compared in the following table
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
HEADING PREVIOUS ACT NEW LABOR ACT
Provident Fund
Contribution: 10% by employer and 10% by employee of the basic remuneration of
the concerned employee.
Eligibility: permanent r employee
The Act has continued the same provision. Such amount
should be deposited in the Social Security Fund.
Gratuity
Rate of Gratuity:
for the first 7 years of service: an amount equal to a half a month salary of the
relevant year for each year of service.
for more than 7 up to 15 years service: an amount equal to a two third of a month
salary of the relevant year for each year of service
for service exceeding 15 years: an amount equal to one-month salary of the
relevant year for each year of service.
Time of Allocation: Every year
Eligibility: completion of 3 years of service
Rate of Gratuity: 8.33% of basic remuneration
Time of Allocation: Every month (time of payment of
remuneration)
Eligibility: since the first day of employment
IMPORTANT AMMENDMENTS IN LABOR LAWS
Terminal Benefits
There have been also major changes in the terminal benefit provided to the employees such that the benefits are provided to each laborers
irrespective of length of service or nature of employment. The Previous Labor Act provided the terminal benefits to the permanent employee and for
certain benefits such as gratuity the employee should have completed certain year of services. The eligibility criteria have been removed by the New
Labor Act. The benefits have been compared in the following table
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
HEADING PREVIOUS ACT NEW LABOR ACT
Leave EncashmentAccumulation- Home Leave up to 60 days.
Encashment at the time of discontinuation of service as per the last drawn salary.
Accumulation:
-Home Leave up to 90 days
-Sick Leave up to 45 days
Encashment -at the time of discontinuation of service at
the rate of last drawn salary.
IMPORTANT AMMENDMENTS IN LABOR LAWS
Other Benefits
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
HEADINGS PREVIOUS ACT NEW LABOR ACT
Housing FundAllocation of 5% of gross profit to provide housing
to the worker/employees.No.
Festival Expenses No.
Amount equivalent to the monthly remuneration
once a year. The employee not completing 1
(one) year service is entitled to the expenses on
proportional basis.
Disability Compensation
If disability is caused by accident while on duty to
any employee or worker, he/she is entitled to
disability compensation depending on degree of
disability. For 100% disability a lump sum amount
equivalent to 5 years’ salary should be paid.
from insurance amount on the basis of degree of
disability
Compensation against Injury
The Proprietor should pay the whole amount
incurred on treatment of worker or employee as
compensation in case such worker or employee is
injured while doing a work designated by Entity, on
the recommendation of the medical practitioner
recognized by Government of Nepal.
from insurance amount
IMPORTANT AMMENDMENTS IN LABOR LAWS
Other Benefits
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BUDGET SYNOPSIS FY 75/76 (FY 18/19)
HEADINGS PREVIOUS ACT NEW LABOR ACT
Death Compensation
The entity is to be pay the nearest successor of an