DoubleTaxationTaxes on salary: Nepal preliminary data
How much income tax and social contributions are paid on a salary in Nepal, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | NPR 10,123,428 ≈ €60,000 |
|---|---|
| Income tax | NPR 2,285,794 ≈ €13,548 |
| Employee contributions | NPR 1,113,577 ≈ €6,600 |
| Take-home pay | NPR 6,724,057 ≈ €39,852 |
| Employer contributions and payroll taxes | NPR 2,024,686 ≈ €12,000 |
| Employer's labour cost | NPR 12,148,113 ≈ €72,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 NPR 5,061,714 | €60,000 NPR 10,123,428 | €120,000 NPR 20,246,855 |
|---|---|---|---|
| Sole proprietor | NPR 816,107 17.9 % | NPR 2,137,215 23.5 % | NPR 4,779,429 26.2 % |
| Company | NPR 1,309,718 28.8 % | NPR 2,619,437 28.8 % | NPR 5,238,874 28.8 % |
| Sole proprietor · Presumptive tax (return D-01) — metropolitan/sub-metropolitan city | above the regime's limit | above the regime's limit | above the regime's limit |
| Sole proprietor · Turnover tax (return D-02) — services, metropolitan/sub-metropolitan city | NPR 48,734 1.1 % | above the regime's limit | above the regime's limit |
Special tax regimes
5% tax on foreign-currency receipts for software/IT services, consulting and social-media content
For the self-employed · rate 5.0 %
Who: Resident individuals not registered as a business who earn such income in foreign currency.
Foreign-currency payments for software or similar electronic services, personal consulting services provided abroad, and audiovisual content uploaded to social media are taxed at 5%, withheld by the receiving bank.
Legal basis: Income Tax Act 2058, s. 95A(6b)-(6d)
Tax residence
The tax residence check does not cover Nepal yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 168.723795 NPR (Nepal Rastra Bank — foreign exchange rates, USD mid of buying (143.65) and selling (144.25); NPR is pegged to the Indian rupee at 1.6 NPR per INR, 02/01/2026) ↗
Sources
- Inland Revenue Department — Tax rates for natural persons, income year 2083/84
- Inland Revenue Department — rate sheet for natural persons, income year 2083/84 (PDF attached to the page above: bands, 1% SST exemption, retirement-contribution deduction, presumptive and turnover tax)
- Inland Revenue Department — Income tax rates for entities, income year 2083/84
- Inland Revenue Department — Withholding (TDS) rates on payments, 2083/84 (dividend 5%, s. 88(2)(a))
- Social Security Fund — formal sector: amount to be deposited in the fund (infographic: employer 20%, employee 11%, total 31% of basic remuneration)
- Nepal Rastra Bank — forex rates API (1-3 Jan 2026)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.