Income Tax Rate applicable on Employment Fiscal Year 2077/78 (2020/21)
Income Tax Rate applicable on Employment Fiscal Year 2077/78 (2020/21)
Income tax rate for the employment income is taxed in Nepal on progressive income tax basis income tax rate range from 1% to 36% which are presented as below. Tax rate applicable on employment are charged in individial and couple assessment basis. Tax on propreitorship firm is also taxed on the same basis.
Individual Assessment
| Slab Amount | Tax Slab | Tax Rate |
|---|---|---|
| 0-4,00,000 | First 400,000 | 1% |
| 4,00,001-5,00,000 | Next 100,000 | 10% |
| 5,00,001-7,00,000 | Next 200,000 | 20% |
| 7,00,001-20,00,000 | Next 13,00,000 | 30% |
| 20,00,000+ | Above 20,00,000 | 36% |
Couple Assessment
| Slab Amount | Tax Slab | Tax Rate 2077/78 |
|---|---|---|
| 0-4,50,000 | First 450,000 | 1% |
| 4,50,001-5,50,000 | Next 100,000 | 10% |
| 5,50,001-7,50,000 | Next 200,000 | 20% |
| 7,50,001-20,00,000 | Next 12,50,000 | 30% |
| 20,00,000+ | Above 20,00,000 | 36% |
First slab of 1% is not applicable in following case.
- Contribtuion to is made on Contribution based social security fund
- If the income is made from propreitorship firm business
- Income is made from pension fund
- Contribtuion is made for contribution based pension fund.