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|
|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|
|Sierra Leone||Jan 2021||1.5%||Digital and electronic services|
|Vietnam||2021 TBC||1.5%||Ecommerce tax|