Haven Management Consultants

Insights

Accounting, tax and business compliance in Nepal.

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39 articles

Personal TaxGuide

Salary Income Taxation in Nepal: Legal Provisions and Worked Computation

Salary, allowances, non-cash benefits, deductions and annual tax calculations, explained with legal provisions and worked examples.
Personal TaxGuide

Retirement Contributions and Retirement Payment Taxation in Nepal

Retirement contribution deductions, approved and unapproved fund payments, pension and final withholding tax.
Personal TaxGuide

Tax Residency and Foreign Income of Individuals in Nepal

Individual residence tests, income source, country-wise foreign tax credits and treaty considerations.
Personal TaxShort Read

Cash Housing Allowance vs Provided Accommodation

Cash housing allowance and employer-provided accommodation have different tax valuations.
Personal TaxShort Read

Tax on an Employer-Provided Vehicle

A vehicle available for private use can create taxable employment income even without a cash payment.
Personal TaxShort Read

Tax on Bonuses and Festival Allowances

A bonus or festival allowance is normally part of annual employment income, not a separately exempt payment.
Personal TaxShort Read

Insurance Premium Deductions for Individuals

Qualifying premiums reduce taxable income, subject to separate limits; they are not direct tax refunds.
Personal TaxShort Read

Medical Treatment Tax Credit

Approved medical expenditure can reduce tax directly; reimbursed costs cannot be claimed again.
Personal TaxShort Read

Women's Remuneration-Only Tax Rebate

The qualifying rebate reduces tax by 10%; it does not exempt 10% of salary.
Personal TaxShort Read

Tuition Fee Deduction for Children's Education

The new tuition relief reduces taxable income by the lower of 25% of eligible tuition and NPR 25,000.
Personal TaxShort Read

Salary from Multiple Employers

Several employers do not give one employee several sets of annual personal tax bands.
Personal TaxShort Read

Foreign Salary vs Remote Work in Nepal

A foreign employer or overseas bank account does not automatically make salary foreign-source.
Personal TaxShort Read

Why Foreign Tax Credits Are Country-Wise

Excess foreign tax from one country cannot automatically cover an unused credit limit for another.
Business TaxShort Read

PAN Registration vs VAT Registration

A PAN identifies a taxpayer; it does not by itself authorise VAT collection.
Business TaxShort Read

Tax Invoice vs Ordinary Bill

A payment receipt or PAN bill is not automatically a valid VAT tax invoice.
Business TaxShort Read

When Does TDS Apply to an Advance?

A service payment does not escape withholding merely because it is paid before completion.
Business TaxShort Read

Company Annual Returns vs Income Tax Returns

Filing with the Company Registrar does not replace filing an income tax return with IRD.
Personal TaxShort Read

Tax Deduction vs Tax Credit

A deduction reduces taxable income; a credit reduces the tax calculated on that income.
VATShort Read

When Is VAT Registration Mandatory?

Check turnover, expected growth and special registration rules; a PAN alone is not enough.
VATShort Read

Input VAT Credit: Conditions and Evidence

VAT paid on a purchase is creditable only when the legal conditions and documents support the claim.
VATShort Read

Exempt vs Zero-Rated Supplies

Both may show no output VAT, but their input-credit consequences differ.
VATShort Read

VAT on Advance Payments

Receiving an advance for a taxable supply can trigger VAT before delivery or completion.
VATShort Read

VAT Credit Notes for Returns and Price Changes

A genuine sales return or price reduction needs a traceable VAT adjustment, not deletion of the original invoice.
VATShort Read

VAT on Sale of Business Assets

Old or fully depreciated business equipment is not automatically VAT-free when sold.
VATShort Read

Input VAT on Purchases Before Registration

Opening-stock credit is conditional; VAT registration does not make every earlier expense creditable.
VATShort Read

Allocating Input VAT on Mixed Supplies

Use direct attribution first; apportion genuinely common inputs rather than claiming all VAT.
VATShort Read

VAT on Imported Services

A foreign service invoice without Nepal VAT can still create a Nepal VAT obligation for the recipient.
VATShort Read

VAT Withholding: Who Deducts?

VAT withholding under rule 6c is different from income-tax TDS.
VATShort Read

VAT Returns When There Are No Transactions

No sales does not automatically mean no VAT-return obligation.
VATShort Read

VAT on Discounts, Samples and Promotional Gifts

An invoice discount and a free promotional distribution are not automatically treated alike.
VATShort Read

VAT Deregistration: Remaining Stock and Assets

Closing VAT registration can create a final VAT charge on goods for which input credit was taken.
VATShort Read

Excess Input VAT: Carry Forward or Refund?

An excess input balance is not automatically a cash refund.
VATShort Read

VAT Records: What to Keep and for How Long

Keep the records behind the VAT return, not only the return acknowledgement.
Business TaxShort Read

Final Withholding Tax in Nepal

Final withholding settles tax on the specified payment, not on all income of the recipient.
Business TaxShort Read

Common TDS Rates in Nepal

Choose the payment category and recipient status before selecting a TDS rate.
VATShort Read

Can Bad Debts Reduce VAT?

Writing off an unpaid invoice does not, by itself, reverse the VAT already due.
VATShort Read

VAT on Reimbursed Expenses

Calling an expense a reimbursement does not automatically put it outside the VAT base.
VATShort Read

VAT on Branch Stock Transfers

Moving stock within one business is different from selling goods to another company.
VATShort Read

Correcting a VAT Return

A timely filed VAT return has a seven-day correction window, subject to IRD's prescribed procedure.