Income tax on foreign earned income in Nepal
I’ve recently started working as a contractor for a foreign company that does not have any office or presence in Nepal. My expected annual income will be over NPR 50 Lakhs. I receive money in my personal bank account.
From what I’ve read online, it seems banks in Nepal automatically deduct 5% TDS when foreign currency is remitted. But I’m still confused about a few things:
Do I still need to file income tax with IRD separately, or is the 5% TDS enough?
If I need to file, how does the process work for foreign-sourced self-employment/contractor income?
Will it be difficult to obtain a tax clearance certificate later?
Are there any special forms or documents I need to keep to prove this income is legitimate and taxed properly?
Thanks!
Posted Aug 5, 2025, 5:59 PM UTC