Nepal Tax Tables 2024 (2080) - Tax Rates and Thresholds in Nepal

This page contains the tax table information used for the calculation of tax and payroll deductions in Nepal in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ NP, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Nepal or would like to add to or suggest amendments to the information herein then please contact us.

Nepal Personal Income Tax Tables in 2024 (2080)

The Income tax rates and personal allowances in Nepal are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Nepal Tax Calculator 2024.

Income Tax in Nepal in 2024 (2080)

If you are an not famliar with Nepal, you may be wondering why the tax year is showing at 2024 and not 2080/2081. The answer is that the tax year in Nepal is 2080 (what most would consider the 2024/2025 tax year) as Nepal uses the Bikram Sambat Nepali calendar. The current Nepali Year in Nepali based on the Nepali calendar is 2080 Bikram Sambat. To save you working out the math, the Nepali Calendar is approximately 56 years and 8 and months ahead of the English Calendar which uses the Gregorian Calendar system based on Anno Domini.

In Nepal, social security deductions made by employees for contributions to the Social Security Fund (SSF) are deductible for the purpose of calculating taxable income. This means that the amounts contributed towards social security by employees can be subtracted from their gross income before the income tax is calculated. This provision helps to reduce the taxable base of employees, potentially lowering their overall tax burden and encouraging participation in the social security programs.

Nepal Social Security and Payroll Deduction Rates in 2024 (2080)

In Nepal, the social security and payroll deduction system is a key component of the employment landscape, aimed at providing financial security and benefits to employees while also ensuring that employers contribute to the welfare of their workforce. This system is managed by the Social Security Fund (SSF), established under the Social Security Act, to administer and implement social security schemes for the working population. The contributions made by both employees and employers fund various benefits, including retirement, medical treatment, maternity, accident, and disability coverages.

One of the primary elements of social security in Nepal is the contribution towards the provident fund. This mandatory saving scheme serves as a retirement benefit for employees, where both the employee and employer contribute a percentage of the monthly salary. The funds accumulated in the provident fund can be withdrawn by employees upon retirement, providing a lump sum intended to support them in their post-employment years.

Another critical component is the medical and health insurance coverage, funded through social security contributions. This benefit ensures that employees have access to necessary medical treatments and health care services, covering a range of medical expenses to reduce the financial burden of healthcare on workers and their families.

Maternity benefits are also provided as part of Nepal's social security system, offering financial support to female employees during maternity leave. This benefit aims to protect the health and welfare of both mother and child during and after pregnancy, ensuring that women do not face financial hardship as a result of taking maternity leave.

In the case of accidents or injuries sustained during employment, the social security system provides accident and disability benefits. These benefits offer financial assistance to employees who are temporarily or permanently unable to work due to work-related injuries or disabilities, helping to mitigate the impact of lost income and additional medical expenses.

Nepal's social security system also includes provisions for dependent family members, offering financial support in the event of the death of an employee. This ensures that the families of deceased workers are not left without financial resources, providing a safety net in the face of unexpected loss.

For employers, participating in the social security system is mandatory, and it represents a commitment to the welfare of their employees. By contributing to the social security fund, employers not only comply with legal requirements but also invest in the stability and well-being of their workforce, which can lead to increased employee satisfaction and loyalty.

The implementation of social security and payroll deductions in Nepal reflects the government's commitment to protecting the rights and welfare of workers across all sectors. While the system provides essential benefits, ongoing efforts to improve and expand coverage are crucial to addressing the evolving needs of the Nepalese workforce.

In summary, the social security and payroll deduction system in Nepal plays a vital role in ensuring the financial security and welfare of employees and their families. Through contributions to the provident fund, medical insurance, maternity, accident, and disability benefits, the system provides a comprehensive safety net that supports employees throughout their careers and beyond.

Nepal VAT Rates in 2024

VAT rates for Nepal are reviewed annually, you can use the VAT Calculator to calculate VAT due in Nepal or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Nepal

The following tax tables are supported by iCalculator™ NP as part of the suite of free tax tools we provide for Nepal.