News

The taxation of mergers and acquisitions (M&A) in Nepal is governed by the Income Tax Act, 2058 (2002) (“Income Tax Act”) and the Income Tax Rules, 2059 (2002) (“Income Tax Rules”). While the law does not explicitly define “merger” or “acquisition,” it regulates such transactions through provisions on share transfers, asset disposals, and changes in...

Many taxpayers in Nepal make two costly mistakes: thinking an assessment or decision is final and believing they can talk their way out of it. In reality, once the tax office initiates a tax action—whether for income tax, VAT, or excise duty—it triggers a formal legal process. Attempting to resolve it through informal negotiation or verbal explanations won’t protect your rights and often...

  Nepal is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”), having acceded in 1998 with both reciprocity and commercial reservations. Under the Arbitration Act, 1999 as amended by the 2025 Ordinance (“Arbitration Act”), Nepalese courts recognize and enforce foreign arbitral awards...

What are considered digital services under Nepal’s new Digital Service Tax (DST) procedure? The Inland Revenue Department (“IRD”) has adopted a broad and technology-agnostic approach in defining what qualifies as a digital service. According to the Digital Service Tax 2081 (2024) Procedure (“Procedure”), digital services are those that are delivered online...

Niti Partners was proud to serve as the Knowledge Partner for Global South ADR Day 2025, organized by the KFCRI on May 23. The event brought together ADR professionals and thought leaders from across the Global South to explore innovations and challenges in dispute resolution. Our Partner, Sameep Khanal, spoke at the event, addressing recent arbitration reforms introduced through...

Our Managing Partner has authored a piece on the Kluwer Arbitration Blog titled “One Step Forward, Two Steps Backward: Assessing Nepal’s New Arbitration Ordinance.” The article critically examines recent reforms to Nepal’s arbitration law, highlighting both progress and concerns. Read the full article on Kluwer Arbitration Blog via the link...

The Supreme Court of Nepal has ruled that the federal government holds authority to collect house rent tax from legal persons, clarifying constitutional tax jurisdiction and resolving overlap with local governments.

IntroductionThe Securities Board of Nepal (SEBON) has issued a call for the registration of investment companies meeting specific criteria. This follows a decision by the Government of Nepal dated Poush 18, 2081 (January 2, 2025), made under Section 7, Sub-section (2) of the Asset (Money Laundering) Prevention Act, 2064, designating SEBON as the regulatory body for such...