Central & South Asia
Nepal tax rates 2026
Residents are taxed on worldwide income. Personal tax is progressive with a top-band surcharge, alongside a 25% standard corporate rate and 13% VAT.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 36%Progressive, from 1% to 30%, with a further 20% surcharge on tax for income over NPR 5m. That brings the effective top rate to 36%. |
|---|---|
| Corporate income | 25% |
| Capital gains | 5%–7.5% on listed shares, 10% on unlisted shares, and 5%–7.5% on gains from land or buildings. |
| VAT | 13% |
| Dividends (WHT) | 5% |
| Interest (WHT) | 15% |
| Royalties (WHT) | 15% |
| Social security (employee) | 11% |
| Social security (employer) | 20% |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Municipal house-and-land tax and land-registration fees. |
| Other | Social Security Fund contributions apply. Banks and financial institutions pay 30% corporate tax, while some concessional industries pay 20%. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.