Kathmandu. Nine corporations that provide digital services, including Google, LinkedIn, and Facebook, have paid taxes in Nepal for the first time. The Department of Internal Revenue, which does not have a physical presence in Nepal but operates online, has collected nine million more in taxes from these businesses.
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The business submitted a two percent digital service tax (DST) and a fee-added tax (VAT), according to the director general of the department. The legal process to include a foreign business operating in Nepal as a taxpayer has already generated income.
“Our first action was to make a legal arrangement.” Director General Mainali stated, “We have been interacting and talking with foreign enterprises operating in Nepal. Based on that, we decided the procedure. In addition, we opened a different dollar account. By mail, we communicated with them. If the tax wasn’t paid, they agreed to pay a fine.”
Even if the office is not registered in Nepal, he said that these businesses will be registered with the tax office via the online PAN system, generating more income in the long run.
The government declared in the Economic Act of the fiscal year 2079–2080 that non-resident persons and businesses conducting business in Nepal must pay tax. More than 9 crores of money have been collected from these companies under this up until June 25, 2080.
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