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Nepal updates Digital Services Taxes

2% DST on digital services launched in July 2022

The Nepalese Inland Revenue has updated the requirements on its Digital Services Tax. This is a turnover tax on a range of digital services providered by non-residents to locals. The DST was introduced in July 2022, and may be subject to revision pending OECD Pillar 1 negotiations.

Nepal’s DST is separate from Nepal VAT on digital services.

The Inland Revenue new guidance included:

  • Confirmation 2% tax on in-scope services:
    • Advertising services;
    • Movies, television, music, over the top (O.T.T.) and other similar subscription based services;
    • Data collection services;
    • Cloud services;
    • Gaming services;
    • Mobile application related services;
    • Online marketplace services and services and goods provided through it;
    • Supply and update of software;
    • Sales of data collected from Nepal resident person;
    • Download of data, images and similar services;
    • Education, consultancy, skill development and training services; and
    • E-book, e-library and e-newspaper.
  • Simplified registration proceedure
  • Annual tax registration threshold of NPR 2 million, approximately €13,700 per annum.

See our DST country implementations tracker.

Asia Pacific Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
India Jun 2016 6% Rs 2cores n/a Advertising
India Apr 2020 2% INR 20m n/a Goods and digital services
Indonesia Mar 2020 TBC E-commerce
Laos Feb 2024 TBC Streaming; ad's; travel & hotel online
Nepal Jul 2022 2% NPR 2m Electronic & digital services
New Zealand Jan 2025 3% NZ$3.5m NZ$1.1bn Social media; Content sharing; Search engine; user data; Intermediation;
Pakistan Sep 2021 2% Nil Nil Withholding tax on marketplaces
Kyrgystan Jan 2022 2% Nil Nil Tax on digital services B2B and B2C
Taiwan Jan 2017 WHT Digital and electronic services
Vietnam Jan 2021 1.5% Ecommerce tax WHT


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