Overview of Nepal Budget

Nepal: Attracting Foreign Investment 

Overview of Nepal Budget
Recent 2019 Budget announcements will have an impact on foreign investment in Nepal.

Nepal’s recent annual Budget for 2019 -2020 announces major changes to legislation which impact foreign investors. With increasing interest in Nepal from Non-Government Organizations and Unilateral World Banks, the investment-friendly laws make Nepal an attractive location for foreign investment.

Key changes:

  • Full or partial exemption on tax, fee, duty or levy to the projects which have entered into Project Development Agreement with the Investment Board of Nepal and the contractor company on import of goods and materials.

  • Introduction of a ‘One Point Service Center’ with effect from 15 May 2019 to provide all registration, licensing and approvals to foreign investors as per Foreign Investment and Technology Transfer Act, 2019

  • The Basic exemption limit of resident individual taxpayers has been increased from NPR 400K to NPR 450K.

  • Accidental and health insurance has been exempt from VAT with effect from 29 May 2019.

  • VAT refund to a person or entity enjoying diplomatic facilities can be provided immediately if purchase from a listed entity if the invoice for Rs. 10,000 or more.

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