September 4, 2026 · Finance & Compliance
Essential tax milestones every business manager in Nepal must know to avoid IRD late fees, interest charges, and compliance penalties.
Compliance with the Inland Revenue Department (IRD) requires strict adherence to monthly and quarterly filing cycles under the Income Tax Act 2058.
Monthly Deadlines (By the 25th of every Nepali Month): – VAT Returns: Submission of monthly purchase and sales registers, and payment of collected VAT. – Withholding Tax (e-TDS): Deposit of TDS deducted on salaries (1% to 36%), rent (10%), consultancy fees (15%), and contract payments (1.5%), followed by e-TDS voucher upload.
Advance Corporate Tax Installments: – 1st Installment (By end of Poush): 40% of estimated annual income tax liability. – 2nd Installment (By end of Chaitra): 70% of estimated annual income tax liability. – 3rd Installment (By end of Ashad): 100% of estimated annual income tax liability.
Annual Statutory Filings (By end of Ashwin / Extended Poush): – Annual Income Tax Return (D1 / D2 / D3) accompanied by certified audited financial statements. – Annual return submission to the Office of the Company Registrar (OCR).
Published by: Prakash Giri | Giri The Royal Group Of Companies Pvt. Ltd., Maharajgunj, Kathmandu, Nepal.
