A huge Opportunity to Clear Tax and Company Compliance Penalties as per Nepal Budget 2083/84 

The Government of Nepal has introduced significant compliance relief measures through the Bill to Implement the Financial Proposals of the Government of Nepal (Fiscal Year 2083/84). These provisions offer businesses and taxpayers a unique opportunity to regularize their tax and company compliance status while receiving substantial waivers on interest, penalties, fines, and additional fees.

If your company has missed annual filings, tax returns, VAT returns, renewals, or other compliance obligations, this may be the best opportunity in years to become compliant at a significantly reduced cost.

1. Income Tax Interest and Fee Waiver

The proposed provision allows individuals and businesses that earned taxable income in the past without obtaining a Permanent Account Number (PAN) or filing income tax returns to regularize their tax affairs.

What the proposal means

If a taxpayer:

• Obtains a PAN,
• Files income tax returns for Fiscal Years 2079/80 through 2082/83,
• Pays the applicable income tax,

by the end of Poush 2083, then:

• All related interest charges will be waived.
• Applicable fees associated with the late filing will be waived.
• Tax authorities will not require income tax returns, taxes, fees, or interest for periods prior to Fiscal Year 2079/80.

This provision can be particularly beneficial for freelancers, consultants, small businesses, startups, and individuals who may have operated informally in previous years.

2. VAT Interest and Penalty Waiver

Many VAT-registered businesses have accumulated substantial penalties and interest due to late filing or non-payment of VAT.

What the proposal means

If a VAT-registered person:

• Files all VAT returns up to Chaitra 2082,
• Pays the VAT that should have been collected,
• Pays an additional amount equal to 1% of the VAT liability,

by the end of Poush 2083, then:

• Interest will be waived.
• Additional fees will be waived.
• VAT penalties and fines will be waived.

For businesses with significant outstanding VAT obligations, the savings could be substantial.

3. Company Compliance and Office of Company Registrar Penalty Waiver

Thousands of companies registered under the Companies Act, 2063 have failed to submit annual returns, renew registrations, or pay required government fees on time. As a result, many have accumulated large penalties and interest.

What the proposal means

If a company wishes to:

• Continue its operations, or
• Proceed with company closure or deregistration,

and submits the required filings and pays the applicable fees for Fiscal Year 2082/83 by the end of Ashoj 2083, then:

• All previously accumulated company filing penalties will be waived.
• Outstanding interest will be waived.
• Additional fees and fines imposed under the Companies Act will be waived.

This provision could save companies thousands—or even hundreds of thousands—of rupees in accumulated compliance penalties.

How BizSewa Can Help

Many business owners are unsure about:

• Whether their company has pending filings.
• Whether annual returns have been submitted.
• Whether VAT returns are outstanding.
• Whether tax liabilities remain unpaid.
• How much they may save under the new waiver provisions.

BizSewa can help you:

• Conduct a compliance review of your company
• Check the status of company filings and renewals
• Review tax and VAT compliance records
• Prepare and file pending returns
• Calculate potential savings under the waiver provisions
• Coordinate filings with the Office of Company Registrar and Inland Revenue Department
• Help bring your company into full legal compliance

Request a Free Compliance Review

Please fill in the form below to request a callback from our compliance team.

We will review the status of your company, identify any pending compliance obligations, estimate potential savings available under the Government’s waiver provisions, and guide you through the process of becoming fully compliant.

Don’t wait until the deadlines approach. Early action gives you more time to prepare documents, resolve issues, and maximize the benefits available under these special provisions.

Disclaimer: The above interpretation is based on the provisions contained in the Bill to Implement the Financial Proposals of the Government of Nepal for Fiscal Year 2083/84. Final implementation remains subject to enactment and any subsequent directives issued by the Government of Nepal.