Tax Law

Tax Law

We advise businesses and organisations on all aspects of their tax obligations in Nepal, with lawyers who understand how tax is actually assessed, disputed and litigated, not only the headline rates a business has to pay.

The Legal Framework

Nepal’s tax system runs on a layered statutory structure: the Income Tax Act, 2058 (2002) as the principal direct tax statute, the Value Added Tax Act, 2052 (1996), the Excise Duty Act, 2058 (2002), the Customs Act, 2064 (2007) for cross-border transactions and the Revenue Tribunal Act, 2031 (1974), which establishes the specialist forum where most tax disputes are ultimately resolved. Rates and thresholds are revised annually through the Finance Act, so last year’s position is not a safe assumption for this year.

Tax disputes follow a defined sequence. When the Inland Revenue Department issues an assessment after an audit or desk review, the taxpayer has a short window to file an administrative review, an internal mechanism where the Department reviews its own assessment. If that does not resolve the matter, the taxpayer can appeal to the Revenue Tribunal, which carries a real financial condition: the undisputed tax must be paid in full, and a substantial portion of the disputed amount must be deposited or secured by bank guarantee. That requirement shapes litigation strategy from the outset. From the Tribunal, a further appeal on points of law lies to the Supreme Court.

What We Do

• Tax litigation strategy: handling cases from the earliest stage and deciding early whether to pursue administrative review, appeal or settlement given the deposit requirements.
• Representation before tax and appellate authorities, including the Revenue Tribunal.
• Investigations and quasi-judicial proceedings: managing a matter from the investigation stage before it escalates into full litigation.
• Representation before the High Court and Supreme Court on tax matters and points of law.

Who We Represent

Clients across information technology, telecom, aviation, private equity, media, investment, non-profit, infrastructure, pharmaceutical, travel, hospitality, real estate, education, renewable energy and food and beverage. That range means we have usually already seen the particular tax question a given sector raises, whether VAT treatment of a service or the tax implications of a cross-border investment structure.