{"id":92165,"date":"2023-04-24T16:38:58","date_gmt":"2023-04-24T10:53:58","guid":{"rendered":"https:\/\/techlekh.com\/?p=92165"},"modified":"2023-04-24T21:41:31","modified_gmt":"2023-04-24T15:56:31","slug":"google-digital-service-tax-nepal","status":"publish","type":"post","link":"https:\/\/techlekh.com.\/google-digital-service-tax-nepal\/","title":{"rendered":"Google Registers with Nepal&#8217;s Tax system to Pay Digital Service Tax"},"content":{"rendered":"<div id=\"highlights\">\n<p><strong>HIGHLIGHTS<\/strong><\/p>\n<ul>\n<li>Google has registered with Nepal&#8217;s tax system.<\/li>\n<li>It will now pay a 2 percent digital service tax to Nepal.<\/li>\n<li>Only two foreign companies so far have registered to pay the service tax in the country.<\/li>\n<\/ul>\n<\/div>\n<p>Google LLC (Google), a multinational technology company and a subsidiary of Alphabet Inc., has registered with the tax system of Nepal to pay the digital service tax for the services and products it provides in the country.<\/p>\n<figure id=\"attachment_92177\" aria-describedby=\"caption-attachment-92177\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" data-attachment-id=\"92177\" data-permalink=\"https:\/\/techlekh.com.\/google-digital-service-tax-nepal\/google-to-pay-2-percent-digital-service-tax-on-income-earned-in-nepal\/\" data-orig-file=\"https:\/\/techlekh.com.\/wp-content\/uploads\/2023\/04\/Google-to-pay-2-percent-digital-service-tax-on-income-earned-in-Nepal.jpg\" data-orig-size=\"1200,628\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Google to pay 2 percent digital service tax on income earned in Nepal\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Google to pay 2 percent digital service tax on income earned in Nepal&lt;\/p&gt;\n\" data-medium-file=\"https:\/\/techlekh.com.\/wp-content\/uploads\/2023\/04\/Google-to-pay-2-percent-digital-service-tax-on-income-earned-in-Nepal-490x315.jpg\" data-large-file=\"https:\/\/techlekh.com.\/wp-content\/uploads\/2023\/04\/Google-to-pay-2-percent-digital-service-tax-on-income-earned-in-Nepal-1120x628.jpg\" class=\"size-full wp-image-92177\" src=\"https:\/\/techlekh.com\/wp-content\/uploads\/2023\/04\/Google-to-pay-2-percent-digital-service-tax-on-income-earned-in-Nepal.jpg\" alt=\"Google to pay 2 percent digital service tax on income earned in Nepal\" width=\"1200\" height=\"628\" srcset=\"https:\/\/techlekh.com.\/wp-content\/uploads\/2023\/04\/Google-to-pay-2-percent-digital-service-tax-on-income-earned-in-Nepal.jpg 1200w, https:\/\/techlekh.com.\/wp-content\/uploads\/2023\/04\/Google-to-pay-2-percent-digital-service-tax-on-income-earned-in-Nepal-960x502.jpg 960w, https:\/\/techlekh.com.\/wp-content\/uploads\/2023\/04\/Google-to-pay-2-percent-digital-service-tax-on-income-earned-in-Nepal-200x105.jpg 200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-92177\" class=\"wp-caption-text\">Google to pay 2 percent digital service tax on income earned in Nepal<\/figcaption><\/figure>\n<p>According to the department, the registration has been made under the name of its Singapore-based regional office with the Large Taxpayers Office under the Inland Revenue Department (IRD).<\/p>\n<p>IRD issued guidelines on Digital Service Tax called &#8220;<a href=\"https:\/\/ird.gov.np\/public\/pdf\/1950866936.pdf\" target=\"_blank\" rel=\"noopener\">Procedure relating to digital service tax, 2079 (2022)<\/a>&#8221; last year to collect taxes from foreign service providers providing service in Nepal.<\/p>\n<p>As per the guideline, a non-resident person providing digital service in Nepal with an annual turnover of more than NPR 2 million is required to pay a tax of two percent of the transaction value starting this fiscal year 2022-23.<\/p>\n<p>This means that all foreign digital services providers with an annual transaction of over NPR 2 million, including Facebook, TikTok, Twitter, Netflix, Microsoft, Zoom, and many other companies, must register with Nepal&#8217;s tax system.<\/p>\n<p>However, according to the IRD, only two foreign companies, including Google, have registered for such tax so far.<\/p>\n<blockquote><p><strong>This means that Google will pay two percent of its total income earned by providing services to Nepali consumers.<\/strong><\/p><\/blockquote>\n<p>The guideline also states that a fee of 0.1 percent per year will be charged if the tax return is not filed within the time limit, and an interest of 15 percent per year will be charged if the tax is not paid within the stipulated time limit. The Large Taxpayer Office administers such tax.<\/p>\n<blockquote><p><strong>Although the government implemented the digital service tax to bring foreign service providers into the country&#8217;s tax net, it has not seen much attraction.<\/strong><\/p>\n<p><strong>The government also appears uncertain about the steps that need to be taken if these companies refuse to register in Nepal.<\/strong><\/p><\/blockquote>\n<p>To increase the attractiveness of the digital service tax, the government will make more efforts, according to Revenue Secretary Dr. Ramprasad Ghimire. He stated that the government will increase programs aimed at encouraging companies to register for tax, as well as reaching out to companies and requesting them to register as needed.<\/p>\n<p>The Inland Revenue Department has also made arrangements to register online to help people register in the tax system. Raju Prasad Pyakurel, information officer at the IRD, informed that people can register for taxes online by completing the necessary documents, and they do not have to come to Nepal for that.<\/p>\n<p><a href=\"https:\/\/gorkhapatraonline.com\/news\/61680\" target=\"_blank\" rel=\"noopener\"><em>Source<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HIGHLIGHTS Google has registered with Nepal&#8217;s tax system. It will now pay a 2 percent digital service tax to Nepal. Only two foreign companies so far have registered to pay the service tax in the country. Google LLC (Google), a multinational technology company and a subsidiary of Alphabet Inc., has registered with the tax system&hellip;<\/p>\n","protected":false},"author":1083,"featured_media":92177,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[7779,110,7778,4288,5034],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Google Registers in Nepal to Pay Digital Service Tax<\/title>\n<meta name=\"description\" content=\"Google has registered with the tax system of Nepal to pay the digital service tax for the services and products it provides in the country.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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