Tax Rates on Individual Income and Freelancers in Nepal | Sarojan | Gurzu

At Gurzu, our Knowledge Ketchup sessions cover more than just engineering. Sarojan recently walked us through how income tax works for freelancers and individuals in Nepal.

Transcript

1. Tax Rates on Individual Income and Freelancers
2. 1.Natural Person Income 2.Businees Income 3.Windfall Income Income Source
3. Freelancer Income Natural or Personal Income Employment Income Investment Income
4. Employment Income The person as an employee whose income source is from a private or government sector that income is known as employment income. Freelancer Income Investment Income The person who works without engaging in the private or government sector has an income in dollars that is known as freelancer income. The person whose income is from investment (share market or real state) that income is known as investment income
5. According to Act of Tax Law in Nepal, the government has separated taxes into two types. Indiviual Tax 1. 2. Couple Tax
6. Per Yer Income TAX UP TO 5,00,000 1% Next 200,000(7,00,000-5,00,000) 10% Next 3,00,000(10,00,000-7,00,000) 20% Next 10,00,000(20,00,000-10,00,000) 30% Next 30,00,000(50,00,000-20,00,000) 36% Above 50,00,000 39% Back to Agenda Note: 1. 10% Tax Rebate for individual women. 2. If the taxpayer is depositing the amount in Social Security Fund (SSF) then for them Social Security Tax is not applicable.
7. Per Yer Amount TDS UP TO 6,00,000 1% Next 200,000(8,00,000-6,00,000) 10% Next 3,00,000(11,00,000-8,00,000) 20% Next 9,00,000(20,00,000-11,00,000) 30% Next 30,00,000(50,00,000-20,00,000) 36% Above 50,00,000 39% Couple Tax
8. Amount TAX RATE Amount 500000 1% 5000 200000 10% 20000 50000 20% 10000 Total TAX 35000 Annual Salary-750000 Individual Tax
9. Amount TAX Amount 600000 1% 6000 150000 10% 15000 Total Tax 21000 Couple Tax Annual Salary-750000
10. Tax Waver Incapacitated Insurance Remote Area Contribution Benefits Female Tax Credit
11. INSURANCE Life Insurance - 40000 Health Insurance - 20000 Home Insurance = 5000
12. CONTRIBUTION BENEFITS 1. Social Security Fund: Actual Paid 1/3 of adjusted Income / Maximum 5 lacs or 6 lacs rd 2. Citizen Investment Trust - Actual Paid 1/3 of adjusted Income / Maximum 3 lacs rd 3. Provident Fund And Gratuity:Actual Paid 1/3 of adjusted Income / Maximum 3 lacs rd
13. Female Tax Credit Total Tax Amount - 10% Taxable amount - 5000 Female TAX - 10% - 500 Annual TAX Amount - 4500
14. Freelancer Income Total Income - 5%
15. Investment Income Hold 1 year or less 7.5% Hold more than 1 yrs 5.00% Share-market Real-estate Hold 5 year or less 7.5% 5.00% Hold more than 5 yrs
16. THANK YOU AND HAVE GOOD DAY