Why So Many Nepali Freelancers Don't File Tax, and What It Costs Them
Summary
Many Nepali freelancers earning from foreign clients are unaware of tax rules and fail to keep records, leaving them without proof of income when they need loans, visas or tax compliance documents. The article explains Nepal’s 5% withholding tax on foreign freelance income and outlines the steps freelancers should take to file properly.
Key Points
- A large share of Nepali freelancers do not know the tax rules, and many fail to keep records of their income.
- Foreign freelance income received through Nepali banks is generally subject to a 5% final withholding tax if the recipient is not a registered business.
- Not filing taxes can leave freelancers unable to prove income for loans, visas or study-abroad applications, and may create back-tax liabilities.
- The article urges freelancers to get a PAN, use formal banking channels, keep records and file on time.
