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