Nepal TDS Calculator
Tax deducted at source for rent, commission, contracts, dividends, and more.
These TDS rates are tentative, not official — the government can revise them at any time. Always verify the current rate for your specific payment category against an IRD circular before relying on this for real filing.
Calculate Tax Deducted at Source (TDS) under Nepal's Income Tax Act 2058 for common payment categories — rent, dividend, commission, service fees, and contract payments — with the applicable rate, TDS amount, and net payment.
Common TDS rates — FY 2082/83
| Category | Rate |
|---|---|
| House / land rent | 10% |
| Dividend | 5% |
| Commission | 15% |
| Service fee — VAT-registered provider | 1.5% |
| Service / consultancy fee — PAN only | 15% |
| Contract payment — resident | 1.5% |
| Contract payment — non-resident | 5% |
| Interest | 15% |
How TDS is calculated
TDS amount = payment × TDS rate, and the payee receives the payment minus the TDS. The payer deposits the TDS with the Inland Revenue Department, and the payee can usually claim it as tax already paid when filing their own return.
Worked examples
| Payment | Rate | TDS | Net paid |
|---|---|---|---|
| Monthly house rent of Rs 50,000 | 10% | Rs 5,000 | Rs 45,000 |
| Rs 100,000 service fee to a VAT-registered firm | 1.5% | Rs 1,500 | Rs 98,500 (plus VAT) |
| Rs 100,000 consultancy fee to a PAN-only provider | 15% | Rs 15,000 | Rs 85,000 |
For a VAT-registered provider, TDS is calculated on the amount before VAT — the 13% VAT is paid on top and isn't reduced by TDS.
Tips
- Check the PAN or VAT certificate of the person you're paying, since the rate often depends on it.
- Deposit on time. Late deposits can attract interest and penalties.
- Keep records of each deduction so the payee can claim the credit.
Rates can change with each year's Finance Act. Confirm unusual cases with the Inland Revenue Department or a tax professional. To work out VAT on an invoice, use the Nepal VAT calculator.
Frequently asked questions
Why is the service fee rate different for VAT-registered providers?
A service provider who is VAT-registered and issues a VAT invoice is taxed at a reduced 1.5% TDS rate on the pre-VAT amount. A provider with only a PAN (not VAT-registered) is subject to 15% instead.
Is this list of categories complete?
No — the Income Tax Act 2058 (Sections 87–92) defines many more categories and special cases than shown here. This covers the most common payment types; for anything unusual, confirm the applicable rate with a tax professional or the Inland Revenue Department.
Who is responsible for depositing TDS?
The person or business making the payment withholds the tax and deposits it with the Inland Revenue Department, generally within 25 days of the end of the month in which it was withheld.
Is TDS the final tax?
For some payments, such as dividends, TDS is treated as the final tax. For most others, it's an advance payment that the payee adjusts against their total income tax when filing their annual return.