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.
After India, second tax treaty was signed with Norway in 1996. Further, bilateral tax treaty has already been signed with other nine countries till date which are Thailand, Sri Lanka, Mauritius, Austria, China, Qatar, Bangladesh, Korea and Pakistan, among which Bangladesh being the most recently agreed country i.e. on March, 2019. So, till date Nepal is in agreement with total of 11 countries. As per the Inland Revenue Department (IRD) report, the negotiation work is in process with other countries like: Singapore, Malaysia, UK and Oman.
For Synopsis of DTAA of Nepal with 11 Countries, click on download.
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