Nepal Tax Agency Publishes 2024 Digital Service Tax Act (Corrected)

The Nepali Inland Revenue Department Aug. 23 published the 2024 Digital Service Tax Act. The Act includes: 1) relevant definitions; 2) a 2 percent tax rate on the value of digital service transactions for nonresidents; 3) an exemption limit for transactions of up to 3 million Nepalese rupees (US$22,351) per year, with taxes applying to the entire transaction value exceeding the exemption limit; 4) a fine of 0.1 percent per year on the non-submission of a return; and 5) a 15 percent interest charge on the failure to pay tax within three months after the income year. The Act entered ...