15 foreign-based tech firms, including Google, Meta, Microsoft, Amazon, etc, have paid Rs 41 crore in taxes to the Nepal government in FY 2080/81. Despite not all being registered in Nepal as social networks, these foreign firms still managed to pay taxes to the government. The 62nd annual report of the Office of the Auditor General states.
According to the report, the international tech companies paid Rs 41.20 crore to the government in FY 2080/81.
And it’s a good indication that prominent global firms such as Google, Meta, Microsoft, etc. are paying taxes in Nepal.
The OAG Report 2082 shows that a total of 18 firms paid taxes in FY 2080/81. These companies are registered as digital service providers.
According to Section 20 of Nepal’s Financial Act 2079, foreign-based electronic service providers are required to pay an electronic service tax of two percent.
In the previous fiscal year, FY 2079/80, the government could only collect Rs 10.84 crore from foreign electronic service providers. The amount increased in FY 080/81 by a substantial margin.
The OAG report mentions that collecting revenues from foreign-based firms is a good sign. However, it mentions that initiatives are required to bring all non-resident companies within the jurisdiction of taxation in Nepal.
It’s worth noting that the government has called on Meta, X, and other companies to register in Nepal as social network platforms. But they haven’t shown keen interest in it owing to differing policies regarding data privacy. The government could even consider banning social networks if they don’t comply with the government’s request to register.