Business

How to apply for Tax Clearance Certificate in Nepal?

By Sarika

17 May 2022 15:17 PM | UPDATED 3 months ago

17 May 2022 15:17 PM

As we all know that the complete form of tax is Taxation. Taxation means a compulsory contribution to increasing government revenue. It is imposed by a government on workers, incomes, goods, services, and other transactions. No one can save from tax. 

If a person or company is taxed, they have to pay a certain percentage of their income to the tax office as per the rules imposed by Nepal Income Tax Act 2058.  There are certain rules for the tax that has to be followed properly by the public while paying the tax of their income.

After paying the tax of the total income you can get a Tax Clearance Certificate from the Tax office. Here, we are going to share the process and steps to get the Tax clearance Certificate easily in Nepal.

Tax

Table of Content

  1. Definition of Tax
  2. Tax Clearance Certificate Means
  3. Who has the authority to issue a Tax Clearance Certificate
  4. How to apply for a Certificate?
  5. Process after the Application is Submitted
  6. Cost to get Tax Clearance Certificate
  7. Conclusion

1. Tax Clearance Certificate Means

A tax clearance Certificate means the document which is provided by the Ministry of Finance, Government of Nepal as per the rules and regulations of the Nepalese Income Act 2058. It is provided to the company or to a person after clearing the tax due. You can get this certificate after compliance with the tax as per the rules of the Nepalese Income Tax Act 2058. 

2. Who has the authority to issue a Tax Clearance Certificate?

Inland Revenue Department (IRD) is authorized to give a Tax Clearance Certificate to the Tax Payer on behalf of the Ministry of Finance, Government of Nepal. All the tax-related works are done under the rules and regulations of the IRD and Nepalese Income Tax Act 2058. Thus the authority to issue a Tax Clearance Certificate is given by the Ministry of Finance to the Inland Revenue Department(IRD). You can visit this site  https://ird.gov.np/ for all the transactions related to the Tax. 

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3. How to apply for a Certificate?

According to the Nepalese Income Tax Act 2058, there are certain processes to apply for the Tax Clearance certificate which are followed below

In the case of the Company

  • First, you have to pay all the due taxes to the Tax Office 
  • Sub copy of Tax Paid voucher 
  • One copy of the Audit Report of that year 
  • You have to attach a copy of the rent tax if you are paying rent to Houseowner
  • Copy of previous year’s Tax Clearance Certificate and Income Tax Return Certificate
  • One copy of the PAN( Permanent Account Number) Certificate. 

In the case of individuals or person 

  • In the case of Salary Income, You have to attach Sub copy of income details and tax deposit detail certificate with other documents
  • In the case of Rental Income from House or Land, a copy of income details and tax deposited for the period
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4. Process after the Application is Submitted

There is a certain process for the submission of an application to get a Tax Clearance Certificate. They are followed below

  • After the submission of documents, the tax officer reviews all the submitted documents one by one and verifies that the tax has been paid per the self-assessment submitted. 
  • Then the application will be forwarded to the Tax Clearance Unit and Dues Assessment Desk to verify whether there are any outstanding liabilities. 
  • After that, if there is any confirmation of outstanding payment, the taxpayer should have to clear the outstanding dues for the further process. 
  • After the due clear confirmation from the Due Assessment Desk, the Tax Clearance Unit registers the application in the Tax Portal and issues the submission number. 
  • Again, Tax Officer reverifies the application to see the uncleared dues. 
  • After one more conformation from the Tax Officer, the Tax Clearance Unit provide the certificate which is authorized by IRD(Inland Revenue Department) 
  • At last, the printed certification will be stamped and signed by the head of the Tax Office. 
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5. Cost to get Tax Clearance Certificate

There is no cost to get a Tax Clearance Certificate. Only you have to do is to clear the unpaid tax to the Tax office. After clearing unpaid dues you will get the Tax Clearance Certificate for free. 

No Cost

6. Conclusion

At last, we can conclude that the above-mentioned facts to get the Tax Clearance certificates in Nepal may be beneficial for you guys. Thank you for helping us by giving your valuable time with the aid of studying this weblog. Hope you all like it.

Thank You

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