The world’s leading tech giant Google LLC. has finally registered in Nepal. The move will help the US-based official entity in Nepal’s tax system.
It also makes Google the first largest tech corporation in Nepal to be registered. Nepal has brought a law to bring internet-based companies under taxation. Significantly, the move has found the best-ever start as the globally popular and consumed company came within the jurisdiction of the government of Nepal (GoN).
Google registered in Nepal | Will pay two percent tax on every transaction
Raju Prasad Pyakurel, the spokesperson at the Inland Revenue Department (IRD) shared some details regarding the milestone event. He said that Google has been registered to pay the electronic service tax as stipulated by the Government’s Financial Act of the current fiscal year 2079/80. “The various services and products provided by Google in Nepal have been registered to pay tax according to the electronic service tax,” he said.
According to the department, the company is registered in the name of the regional office in Singapore. In order to look after the administration of electronic service tax, the department has assigned the responsibility to the large taxpayer office at Harihar Bhawan in Lalitpur.
Also read: Nepal Government to Tax Social Media and Regulate Them from FY 079/80
Electronic service tax law
From the current financial year 2079/80, the government has imposed an electronic service tax at the rate of two percent on the transaction value of electronic services provided by non-residents to consumers in Nepal. As per the rule, Google will have to pay two percent of the total income earned by providing services to Nepalese consumers.
Google is most popular for its search engine service at Google.com. Besides, the company has Android smartphone OS, web browsing, cloud computing, Gmail, Google Maps, Photos, etc. Check out: Google Launches New Features on Search, Maps, and Shopping
Nepal has long wished and tried to get foreign tech companies within its lawbooks. This is the first success of a foreign company getting its registration in Nepal. Now, the government will be able to closely monitor Google’s operations and earn applicable taxes.