Nepal Tax Agency Clarifies Mismatch Discrepancies in Tax Returns Related to Business Transactions

The Nepali Inland Revenue Department Oct. 14 clarified mismatch discrepancies in tax return filing associated with business transactions. The tax agency clarifies: 1) a “mismatch” is a discrepancy in the details submitted by a buyer and seller on their Schedule 13 income statements, a form required from taxpayers with over 100,000 Nepali rupees (US$760) annually in purchases or sales; 2) additional tax liability or prosecution may result from a mismatch; 3) for taxpayers found entitled to VAT, VAT will be collected at a 13 percent rate on the revenue and 15 percent per year; 4) a 50 percent income tax ...