Nepal signed it first Double Taxation Avoidance Agreement with the neighbouring country India way back in January 18, 1987. Prior to that, the provision of giving deduction in foreign tax already existed through the Income Tax Act, 1974 but the provision of foreign tax credit has been introduced through tax treaties with various countries thereafter.

Finance Minister, Dr. Yuvraj Khatiwada on May 29, presented an ambitious Rs. 1.532 trillion federal budget for the fiscal year 2076/77 (2019/20) in the joint session of the House of Representatives and National Assembly.

Nepal Rastra Bank has unveiled the monetary policy for fiscal year 2018-19. The Monetary Policy among others reduced Cash Reserve Ratio (CRR) to four per cent for commercial and development banks from six and five percent. 

The Finance Minister Yubaraj Khatiwada tabled the first Budget of PM KP Oli led majority government earlier this week. He allocated total budget of NPR 1315.16 Billions of which 62.83% was Current Expenditure and 26.21 was Capital Expenditure.

The Labor Act, 2074 has received the assent of president and become effective from the date Bhadra 19, 2074. The Labor Act, 2074 has replaced the previous labor law completely i.e. Labor Act, 2048 has ceased to be in effect. 

Government of Nepal has launched budget of Rs 1,279 billion for the fiscal year 2074/75 (2017/18). Of this fund, Rs 803.5 billion has been Rs 335.2 billion for capital expenditure and Rs 140.3 billion for financing provision.

Nepal has a moderate Corporate Tax Rate in comparison to the Tax Rate of it's South Asian Counterpart. Though the Country is still struggling to come out of the Political Instability, However it holds a tremendous opportunity for the Investors to invest in various sectors most notably Hydro and Real Sectors.

Finance Minister of Nepal Mr. Bishnu Poudel has tabled the Budget of F.Y. 2073/74 on Jestha 15 2073. People of Nepal were eagerly waiting for this budget as it was the first budget after the promulgation of Constitution of Nepal 2072.

In this issue, the Newsletter throws some lights into the Value Added Tax in Nepal, Procedure for Foreign Investment in Nepal, Withholding Tax (TDS) Rates on Different Payments,  Upcoming Budget of Nepal. 

In this issue, the Newsletter throws some lights into the FDI Attractions in Nepal, Tax on Employment, Watchlist Provision introduced by Central Bank of Nepal recently and the Banking Reforms in Nepal.

Government of Nepal's Current Finance Minister Dr. Ram Sharan Mahat presented the Budget on July 14, 2015 for the Fiscal Year 2072/73 (2015/2016). The total size of the budget announced for Nepal's new Fiscal Year is Rs 819.468 billion.

With the successful Second Constitution Assembly Election in 2070, Nepal has got the First Budget from the Finance Ministry. Though the Budget has given a ray of hopes among the Business Community of Nepal, yet it has failed to address many concerns of the Poor except that it has widened the Tax Exemption Limit.