Nepal’s fiscal year runs from Shrawan 1 to Ashadh end (roughly mid-July to mid-July). Most registered businesses — whether a sole proprietorship, partnership, or private limited company — are subject to a recurring set of filing and payment obligations across that year. This is a general overview, not a substitute for checking the current-year notices issued by the Inland Revenue Department (IRD).
Advance income tax installments
Businesses estimating an annual tax liability above the prescribed threshold are generally required to pay advance tax in three installments during the year, based on a cumulative percentage of estimated annual tax:
- First installment — by the end of Poush
- Second installment — by the end of Chaitra
- Third and final installment — by the end of Ashadh
Monthly VAT returns
VAT-registered entities file a monthly VAT return and settle any payable VAT, typically within 25 days of the end of the preceding month. Even in months with no transactions, a nil return is usually still required.
TDS deposits
Tax deducted at source on payments such as salaries, rent, or contractor payments is generally deposited with the IRD within 25 days of the end of the month in which the deduction was made, along with the corresponding TDS return.
Annual tax return
The annual income tax return is typically due within three months of the fiscal year end (i.e., around the end of Ashwin), with provisions for extension in certain cases.
A general note
Exact thresholds, percentages, and due dates are revised from time to time through the annual Finance Act and IRD notices. Businesses should confirm the applicable rules for the current fiscal year rather than relying solely on prior-year figures.
This article is for general informational purposes only and does not constitute professional tax advice. Please consult a qualified professional for guidance specific to your circumstances.