Freelancer in Nepal | company registration, PAN, VAT, TDS, customers bill, income tax

freelancer in nepal

Freelancer in Nepal – Question

I want to work as a freelancer in Nepal without registering any company. But if I need to give my customers a valid bill, how can I do that? I have a personal PAN.


Answer

In Nepal, Anyone can without registration as well. You just need to get registered at the Tax Office. You also can work as a contractor but 15% will be deducted as TDS and top of that you will need to pay additional income tax at the end of the financial year. I would advise you to talk with an Accountant or Auditors who can give you expert advice. I have been working with Corporate Services Pvt. Ltd. and highly recommend them for any accounting and legal advice.

You can get Personal PAN and work as a contractor. TDS rate varies depending on the type of work, but I highly doubt 15% for most of the profession. TDS is paid by the person who hired you. As per my understanding, TDS for the non-pan holder is 15%, for pan holder tax is determined by yearly income i.e. 1% or 1.5% for up to 4lacs. Professional such as lawyer generally have their own personal VAT.

You can find provision for this in the Income Tax Act. also, read this one

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