Massive Reform in Nepal's Individual Income Tax System (Nepal budget 2083-84): Nepal Tax Slab 2083-84 (2026-27)

The Government of Nepal has introduced one of the most significant reforms in the individual income tax system in recent years through the Budget for Fiscal Year 2083/84. The reform substantially increases the lower tax threshold while reducing the maximum tax rate, providing relief to middle-income earners and high-income taxpayers alike. The changes are expected to enhance disposable income, encourage compliance, and stimulate economic activity.

Comparison of Individual Income Tax Slabs

FY 2082/83 Individual Income Tax Slab

Taxable Income (NPR)	Tax Rate
First 500,000	1%* (600,000 for couple)
Next 200,000	10%
Next 300,000	20%
Next 1,000,000	30%
Next 3,000,000	36%
Balance above 5,000,000	39%

FY 2083/84 Individual Income Tax Slab

Taxable Income (NPR)	Tax Rate
First 1,000,000	1%*
Next 500,000	10%
Next 1,000,000	20%
Next 1,500,000	27%
Balance above 4,000,000	29%

Key Highlights of the Reform

1. First Tax Slab Doubled

The most notable change is the expansion of the lowest tax bracket from NPR 500,000 to NPR 1,000,000. This means taxpayers earning up to NPR 10 lakh annually will pay only 1% tax, while those contributing to the Social Security Fund (SSF), earning qualifying business income, or receiving pension income may effectively enjoy a 0% rate on this first slab.

2. Significant Reduction in Top Tax Rate

The highest individual tax rate has been reduced from 39% to 29%, representing a reduction of ten percentage points. This is one of the largest reductions in Nepal's personal income tax history and is expected to improve competitiveness and discourage tax avoidance.

3. More Gradual Tax Progression

The revised structure introduces wider income bands and smoother progression between tax rates. Instead of moving rapidly into higher tax brackets, taxpayers now benefit from broader slabs, reducing the marginal tax burden on incremental income.

4. Elimination of Separate Tax Slabs for Married Couples

Another significant reform introduced in FY 2083/84 is the removal of the distinction between single and married taxpayers. Under the previous FY 2082/83 tax regime, single individuals enjoyed the concessional 1% tax rate on the first NPR 500,000 of taxable income, while married couples benefited from a higher threshold of NPR 600,000. The new tax structure has replaced these separate categories with a uniform tax slab applicable to all taxpayers, regardless of marital status. Both single individuals and married couples will now be entitled to the same concessional threshold of NPR 1,000,000. This change not only simplifies the tax system but also substantially increases the lower-rate income band for all taxpayers. By adopting a common tax structure, the government has reduced complexity in payroll administration and tax compliance while ensuring more equitable treatment across different categories of taxpayers.

Impact on Taxpayers

Middle-Income Earners

Individuals with annual taxable income between NPR 500,000 and NPR 2,000,000 are expected to be the biggest beneficiaries. The doubling of the first slab and wider intermediate brackets will substantially reduce their annual tax liability.

Professionals and Entrepreneurs

CEOs and top management employees, Business owners, consultants, and professionals with higher earnings will benefit from the reduction in upper tax rates. The lower maximum rate of 29% may encourage greater voluntary compliance and reporting of income.

Pensioners and SSF Contributors

The continuation and expansion of concessional treatment for SSF contributors and pension income recipients provides additional relief to taxpayers participating in Nepal's formal social security framework.

Economic Implications

The government appears to be shifting from a high-rate taxation model toward a broader tax base with lower rates. By allowing individuals to retain a greater portion of their income, the reform aims to increase consumption, savings, investment, and economic activity. Furthermore, lower tax rates may reduce incentives for tax evasion and encourage more taxpayers to enter the formal tax system.

Conclusion

The FY 2083/84 budget has introduced a landmark reform in Nepal's individual income tax regime. The increase of the lowest tax threshold to NPR 1 million and the reduction of the maximum tax rate to 29% mark a decisive shift toward taxpayer-friendly policies. While the actual impact will vary depending on income levels, most taxpayers are expected to experience a reduction in their overall tax burden. As the Finance Act and detailed implementation guidelines are finalized, taxpayers and employers should review their tax planning strategies to fully benefit from the new provisions.

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Tax Exemptions and Waivers as per Finance bill 2083

Major Highlights of tax exemptions and reliefs provided by Finance Bill 2083:

• Exemptions for Educational, Diplomatic & Development Entities: Universities, diplomatic missions, development partners, and non-resident investors in Nepal are exempt from filing income tax returns and paying tax on certain sources till FY 2082/83.

• Community Schools & Health Institutions: Special provisions for filing returns and waiver of tax, interest, and fees.

• Non-Profit Organizations: Significant relief for institutions registered under the Institution Registration Act, 2034, including waiver of tax on donations, grants, and gifts.

• Voluntary Compliance & Amnesty Schemes: Individuals and entities with pending tax returns, unregistered PAN holders, and those with tax dues can regularize their position with full or partial waiver of interest, penalties, and additional fees. Similar relief for VAT, Excise Duty, and other taxes if returns and dues are cleared within the deadline.

• Pending Assessments & Litigation Cases: Taxpayers with ongoing disputes or departmental assessments can settle by paying principal tax + 1% additional amount and get waiver of interest, penalties, and fees (with some exceptions for telecom sector).

• Company Law Compliance: Companies can clear pending filings, renewals, and dues by the deadline to avail waiver of all prior penalties and fees.

• Other Key Reliefs: Cheese manufacturers (from milk), Bonded warehouse and passbook facilities, Diplomatic and duty-free vehicle transfers, Casino operators and various other sectors.

These measures aim to encourage voluntary compliance, ease the burden on taxpayers, and support economic recovery.
For the complete detailed list with specific sections, deadlines, and conditions, download the full document Click Here.

Note: This is a summary for quick reference. For professional advice tailored to your specific situation, please consult your tax advisor or contact our office.

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१०० दिनमा कार्यान्वयनयोग्य सहकारी पुनर्संरचना र निक्षेप फिर्ता योजना

 

 -Rohit Dhital, FCA 

नेपालमा सहकारी क्षेत्रको वित्तीय संकटका कारण हजारौं बचतकर्ता प्रभावित भएका छन्। तरलता अभाव, कमजोर नियमन र अनियमित व्यवस्थापनका कारण बचत फिर्ता प्रक्रिया अवरुद्ध भएको वर्तमान अवस्थामा “सहकारी पुनर्संरचना कोष” स्थापना गरी तत्काल आंशिक रकम फिर्ता, दोषी सञ्चालक तथा प्रबन्धकहरूको सम्पत्ति पहिचान, जफत तथा नीलामी, चरणबद्ध भुक्तानी प्रणाली र दीर्घकालीन संरचनागत सुधारमार्फत समस्याको समग्र समाधान गर्न सक्छ।

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१. पृष्ठभूमि तथा समस्या विवरण (Background & Problem Statement)

सहकारी ऐन, २०७४ अनुसार सहकारी संस्था सदस्य–केन्द्रित वित्तीय प्रणाली हो। तर अनियमित कर्जा प्रवाह, आन्तरिक नियन्त्रणको कमजोरी, राजनीतिक हस्तक्षेप तथा प्रभावकारी अनुगमनको अभावका कारण धेरै सहकारी संस्थाहरू “problem institution” मा परिणत भएका छन्। हालको कानुनी संयन्त्र (liquidation तथा inspection) पर्याप्त भए तापनि ती प्रक्रियाहरूले बचतकर्तालाई शीघ्र राहत प्रदान गर्न सक्षम देखिँदैनन्, जसले तत्काल सुधारात्मक हस्तक्षेपको आवश्यकता देखिन्छ।

पीडित बचतर्तालाई तत्काल राहत उपलब्ध गराउँदै, सहकारी प्रणालीमा जनविश्वास पुनःस्थापित गर्नु, वित्तीय अनुशासन तथा नियामक क्षमता सुदृढ गर्नु, र दीर्घकालीन रूपमा सहकारी क्षेत्रको स्थायित्व तथा विश्वसनीयता सुनिश्चित गर्नु अहिलेको बलियो सरकारको प्राथमिकतामा पर्न आवश्यक देखिन्छ ।

२. कानुनी तथा संस्थागत आधार (Legal & Institutional Framework)

यस सन्दर्भमा सहकारी ऐन, २०७४ ले सहकारी संस्थाको नियमन, अनुगमन तथा सदस्य हित संरक्षणको आधार प्रदान गर्दछ। साथै, अवैध सम्पत्ति पहिचान र जफतका लागि सम्पत्ति शुद्धीकरण निवारण ऐन, २०६४ प्रयोग गर्न सकिन्छ। संस्थागत रूपमा भूमि व्यवस्था, सहकारी तथा गरिबी निवारण मन्त्रालय, अर्थ मन्त्रालय, नेपाल राष्ट्र बैंक तथा सहकारी संघ/महासंघको समन्वयमा योजना कार्यान्वयन गर्नु पर्ने हुन्छ।

२.१ प्रमुख कानुनी आधार

सहकारी पुनर्संरचना कोषको स्थापना तथा सञ्चालनका लागि विद्यमान कानुनी संरचनाले पर्याप्त आधार प्रदान गर्दछ। विशेषगरी सहकारी ऐन, २०७४ ले सहकारी संस्थाहरूको सञ्चालन, नियमन, निरीक्षण तथा दायित्व निर्धारण गर्ने मूल कानुनको रूपमा कार्य गर्दछ। यस ऐनअन्तर्गत दफा ३० देखि ३५ तथा दफा ५० सम्मले सहकारी संस्थाको सदस्यप्रति उत्तरदायित्व र दायित्व स्पष्ट रूपमा तोकेको छ, जसले सदस्यको बचत सुरक्षित राख्ने तथा आवश्यक पर्दा फिर्ता गर्ने दायित्व सुनिश्चित गर्दछ। त्यसैगरी, दफा ७४ देखि ७७ तथा दफा ९५ देखि १०० सम्मले लेखापरीक्षण तथा निरीक्षण, अनुगमन सम्बन्धी प्रावधानहरू समेटेको छ, जसको प्रयोग गरी समस्या ग्रस्त सहकारी संस्थाहरूको वित्तीय अवस्था यकिन गर्न, अनियमितता पहिचान गर्न तथा corrective measures लागू गर्न सकिन्छ।

यसै ऐनका दफा १०४ देखि १२१ सम्मले समस्याग्रस्त सहकारी संस्थाहरूको व्यवस्थापन, पुनर्संरचना वा विघटन सम्बन्धी प्रावधानहरू प्रदान गर्दछ, जसले सरकारलाई हस्तक्षेप गरी त्यस्ता संस्थाहरूको व्यवस्थापन लिन वा पुनर्संरचना प्रक्रिया अघि बढाउन कानुनी आधार दिन्छ। साथै, दफा १२४ देखि १२६ ले कसूर तथा सजाय सम्बन्धी व्यवस्था गरेको छ, जसअन्तर्गत सञ्चालक, व्यवस्थापक वा सम्बन्धित व्यक्तिहरूले गरेको हिनामिना, ठगी वा अन्य वित्तीय अनियमिततामा कानुनी कारबाही गर्न सकिन्छ, जसले जिम्मेवार पक्षबाट क्षतिपूर्ति असुली गर्ने आधार तयार गर्दछ।

यसका अतिरिक्त, सम्पत्ति शुद्धीकरण निवारण ऐन, २०६४ ले अवैध रूपमा आर्जित सम्पत्तिको पहिचान, अनुसन्धान, रोक्का तथा जफत गर्ने स्पष्ट कानुनी व्यवस्था प्रदान गर्दछ। सहकारी क्षेत्रमा भएको हिनामिना वा ठगीबाट प्राप्त सम्पत्ति यस ऐनअन्तर्गत अनुसन्धान गरी freeze तथा confiscate गर्न सकिन्छ, जसले बचतकर्ताको रकम फिर्ता गर्ने प्रक्रियामा महत्वपूर्ण सहयोग पुर्‍याउँछ।

यसरी, उल्लिखित ऐनहरूबीचको समन्वित प्रयोगले सहकारी पुनर्संरचना कोषको प्रभावकारी कार्यान्वयन, बचतकर्ताको हित संरक्षण तथा दोषी पक्षबाट रकम असुली गर्ने प्रक्रिया कानुनी रूपमा सुदृढ र कार्यान्वयनयोग्य बनाउँछ।

२.२ संस्थागत समन्वय

सहकारी पुनर्संरचना कोषको प्रभावकारी कार्यान्वयनका लागि बहु–संस्थागत समन्वय अनिवार्य रहनेछ। यस सन्दर्भमा भूमि व्यवस्था, सहकारी तथा गरिबी निवारण मन्त्रालय ले प्रमुख कार्यान्वयन तथा नीतिगत नेतृत्वदायी निकायको भूमिका निर्वाह गर्नु पर्नेछ। उक्त मन्त्रालयले समस्या ग्रस्त सहकारीहरूको पहिचान, पुनर्संरचना नीति निर्माण, कोष सञ्चालन कार्यविधि स्वीकृति तथा समग्र कार्यक्रमको निगरानी र मूल्यांकन गर्ने जिम्मेवारी वहन गर्नेछ। साथै, यस मन्त्रालय अन्तर्गतका नियामक संयन्त्रहरूलाई सक्रिय बनाई सहकारी संस्थाहरूको प्रत्यक्ष अनुगमन र हस्तक्षेप प्रक्रिया अघि बढाउनु पर्ने हुन्छ।

यसैगरी, अर्थ मन्त्रालय कोषको वित्तीय व्यवस्थापन तथा स्रोत सुनिश्चिततामा केन्द्रीय भूमिकामा रहनेछ। यस मन्त्रालयले बजेट विनियोजन, वित्तीय अनुशासन कायम गर्ने, विकास साझेदारहरूसँग समन्वय गरी अनुदान वा सहुलियत ऋण जुटाउने तथा कोषलाई दिगो रूपमा सञ्चालन गर्न आवश्यक नीतिगत तथा वित्तीय समर्थन गर्नु पर्नेछ। साथै, कोष सञ्चालनमा पारदर्शिता र उत्तरदायित्व कायम गर्न वित्तीय मापदण्डहरू निर्धारण तथा अनुगमन गर्ने कार्य पनि यसै मन्त्रालयबाट गर्न सकिन्छ ।

प्राविधिक तथा नियामक सहयोगका लागि नेपाल राष्ट्र बैंक को भूमिका महत्वपूर्ण रहनेछ। बैंकिङ तथा वित्तीय क्षेत्रको नियामक अनुभवका आधारमा यस संस्थाले जोखिम मूल्याङ्कन, वित्तीय पुनर्संरचना मोडेल, तरलता व्यवस्थापन, तथा आवश्यक परे early warning system विकासमा प्राविधिक सहयोग लिन सकिनेछ । साथै, सहकारी क्षेत्रको वित्तीय अनुशासन सुदृढ गर्न बैंकिङ क्षेत्रका best practices हस्तान्तरण गर्न पनि यसको योगदान रहन सक्छ ।

त्यसैगरी, सहकारी क्षेत्रकै प्रतिनिधित्व गर्ने केन्द्रीय सहकारी संघ/महासंघ हरूले सदस्य सहकारी संस्थाहरूबीच समन्वय, तथ्याङ्क संकलन, जनचेतना अभिवृद्धि तथा कार्यान्वयनमा सहयोगी भूमिका निर्वाह गर्नु पर्ने हुन्छ । यी संस्थाहरूले सहकारी सदस्यहरूसँग प्रत्यक्ष सम्पर्कमा रही वास्तविक बचतकर्ताको विवरण संकलन, दाबी प्रमाणीकरण तथा कार्यक्रमप्रति विश्वास अभिवृद्धि गर्न सहजीकरण गर्नेछन्। साथै, सहकारी क्षेत्रभित्र स्व–नियमन (self-regulation) र अनुशासन कायम गर्न पनि उनीहरूको सक्रिय सहभागिता आवश्यक रहनेछ।

यसरी, उल्लिखित निकायहरूबीच स्पष्ट जिम्मेवारी बाँडफाँड, नियमित समन्वय बैठक, तथा सूचना आदान–प्रदानको सुदृढ संयन्त्र स्थापना गरी सहकारी पुनर्संरचना कोषको कार्यान्वयनलाई प्रभावकारी, पारदर्शी तथा परिणाममुखी बनाउन सकिन्छ । 

५. प्रस्तावित नीति हस्तक्षेप (Proposed Policy Intervention)

३.१ सहकारी पुनर्संरचना कोष स्थापना

नेपाल सरकारको नीतिगत निर्णय तथा आवश्यक परे मन्त्रिपरिषद्को स्वीकृतिमार्फत “सहकारी पुनर्संरचना कोष” स्थापना गर्नु पर्ने हुन्छ । उक्त कोष एक विशेष उद्देश्ययुक्त (special purpose fund) को रूपमा सञ्चालन हुनेछ, जसको प्रमुख लक्ष्य सहकारी क्षेत्रमा उत्पन्न तरलता संकट व्यवस्थापन, पीडित बचतकर्तालाई राहत वितरण, तथा समस्या ग्रस्त सहकारी संस्थाहरूको वित्तीय पुनर्संरचना गर्नु हुनेछ। कोष सञ्चालनका लागि स्पष्ट कार्यविधि, सञ्चालन समिति तथा निगरानी संयन्त्र स्थापना गरि कोषको प्रयोगलाई लक्षित, उत्तरदायी र परिणाममुखी बनाउनु पर्दछ ।

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३.२ वित्तीय स्रोत (Funding Mechanism)

सहकारी पुनर्संरचना कोषको वित्तीय स्रोत बहुआयामिक हुनेछ, जसमा नेपाल सरकारको वार्षिक बजेट विनियोजन प्रमुख आधार रहनेछ। यसका अतिरिक्त विशेष राहत कोष, विकास साझेदारहरू (जस्तै ADB, World Bank, UNDP) बाट प्राप्त अनुदान वा सहुलियत ऋण, तथा सहकारी क्षेत्रकै छाता संगठनहरूको योगदान पनि समावेश गर्न सकिन्छ। यसरी सार्वजनिक र निजी दुवै क्षेत्रको सहकार्य (public-private participation) मार्फत कोषलाई पर्याप्त स्रोतयुक्त बनाइ तत्काल राहत र दीर्घकालीन असुली दुवैलाई सम्भव र व्यवहारिक बनाउन सकिन्छ ।

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३.३ तत्काल राहत भुक्तानी (Immediate Relief Payment)

कोष स्थापना भएपछि पीडित बचतकर्ताहरूलाई तत्काल राहत प्रदान गर्ने उद्देश्यले उनीहरूको कुल निक्षेपको करिब २५–३० प्रतिशतसम्म रकम प्रारम्भिक चरणमै फिर्ता गर्न सकिन्छ। यस प्रक्रियामा साना बचतकर्तालाई प्राथमिकता दिनु पर्नेछ, जसले आर्थिक रूपमा बढी प्रभावित समूहलाई शीघ्र राहत प्रदान गर्दछ। यस्तो आंशिक भुक्तानीले जनआक्रोश कम गर्ने, सामाजिक स्थिरता कायम राख्ने तथा सहकारी प्रणालीप्रतिको विश्वास पुनःस्थापित गर्न महत्वपूर्ण भूमिका खेल्छ।

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३.४ सम्पत्ति पहिचान तथा जफत (Asset Tracing and Seizure)

समस्या ग्रस्त सहकारी संस्थाका सञ्चालक, प्रबन्धक वा सम्बन्धित व्यक्तिहरूले गैरकानुनी रूपमा संचित गरेका सम्पत्तिहरूको पहिचान गर्न एक उच्चस्तरीय अनुसन्धान समिति (Investigation Committee) गठन गर्नु पर्दछ। उक्त समितिले बैंक खाता, जग्गा, सेयर, सवारी साधन लगायत सबै प्रकारका चल-अचल सम्पत्तिहरूको खोजी तथा विवरण संकलन गर्नेछ। आवश्यक कानुनी प्रक्रिया पूरा गरी अदालतबाट आदेश प्राप्त गरी ती सम्पत्तिहरूलाई रोक्का (freeze) तथा जफत गर्ने कार्य अगाडि बढाउँदछ, जसले निक्षेपकर्ताको रकम असुलीका लागि आधार तयार गर्नेछ।

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३.५ सम्पत्ति लिलामी (Asset Liquidation)

जफत गरिएका सम्पत्तिहरूलाई पारदर्शी र प्रतिस्पर्धात्मक प्रक्रियामार्फत सार्वजनिक लिलामीमा बिक्री(Public auction) गर्नु पर्ने हुन्छ। लिलामी प्रक्रिया प्रचलित सार्वजनिक खरिद नियमावली तथा वित्तीय अनुशासन सम्बन्धी मापदण्डअनुसार सञ्चालन गर्नु पर्ने हुन्छ, ताकि कुनै प्रकारको अनियमितता तथा आर्थिक हिनामिना बिना अधिकतम मूल्य प्राप्त होस् । यसरी प्राप्त भएको रकम “सहकारी पुनर्संरचना कोषमा पुनः जम्मा गरिनेछ, जुन आगामी भुक्तानीका लागि प्रयोग गरिनेछ।

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३.६ चरणबद्ध भुक्तानी (Phased Repayment)

लिलामी तथा अन्य असुली प्रक्रियाबाट प्राप्त रकमको आधारमा बचतकर्ताहरूलाई बाँकी रकम चरणबद्ध रूपमा फिर्ता गर्नु पर्ने हुन्छ। यस क्रममा सामाजिक न्यायको सिद्धान्तलाई आधार मानी साना बचतकर्तालाई प्राथमिकता दिइ, त्यसपछि मध्यम तथा ठूला लगानीकर्तालाई क्रमशः भुक्तानी गर्न सकिन्छ । यस्तो चरणबद्ध प्रणालीले उपलब्ध स्रोतको न्यायोचित वितरण सुनिश्चित गर्नेछ र दीर्घकालीन रूपमा सबै प्रभावित पक्षलाई राहत पुर्‍याउनेछ।

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३.७ पारदर्शिता तथा डिजिटल ट्र्याकिङ (Transparency and Digital Tracking Mechanism)

कोष सञ्चालनमा पूर्ण पारदर्शिता कायम गर्न एकीकृत डिजिटल प्रणाली विकास गर्नु आवश्यक हुन्छ, जसमार्फत कोषको आय–व्यय, असुली प्रक्रिया तथा भुक्तानी विवरण सार्वजनिक रूपमा उपलब्ध हुनेछ। प्रत्येक बचतकर्ताले आफ्नो दाबी र प्राप्त भुक्तानीको स्थिति अनलाइनमार्फत हेर्न सक्ने व्यवस्था हुन्छ। आवश्यक परे blockchain वा अन्य सुरक्षित डिजिटल प्रविधिको प्रयोग गरी data integrity सुनिश्चित गर्नु पर्ने हुन्छ। यसले कोषप्रतिको विश्वास अभिवृद्धि गर्नुका साथै सम्भावित भ्रष्टाचार तथा कोष दुरुपयोगलाई न्यूनिकरण गर्नेछ।

४. विस्तृत तथ्याङ्क संकलन, प्रमाणीकरण तथा विशेष लेखापरीक्षण (Elaborative Explanation)

यस चरणमा समस्या ग्रस्त सहकारी संस्थाहरूको वास्तविक दायित्व (deposit liability) निर्धारण गर्न विस्तृत र प्रमाणमा आधारित प्रक्रिया अपनाउनु पर्दछ।

यसअन्तर्गत:

• प्रत्येक सहकारीबाट बचतकर्ताको विवरण (KYC, खाताको स्थिति, रकम) संकलन;
• डबल क्लेम, फर्जी खाता, वा inflated deposit पहिचान;
• आवश्यक परे forensic audit सञ्चालन;
• डिजिटल रेकर्ड नभएका सहकारीमा physical verification तथा सदस्य साक्ष्य (evidence-based validation) प्रयोग गरि “कति रकम कसलाई फिर्ता गर्नुपर्ने हो” भन्ने यकिन आधार तयार गर्नु पर्दछ।

५. कार्यान्वयन योजना (Implementation Plan/Schedule)

चरण	गतिविधि	समयसीमा
१	कोष स्थापना तथा कार्यविधि स्वीकृति	१५ दिन
२	प्रारम्भिक वित्तीय स्रोत सुनिश्चित	१५–३० दिन
३	विस्तृत तथ्याङ्क संकलन, प्रमाणीकरण तथा विशेष लेखापरीक्षण (Data Collection, Verification & Forensic Audit)	३०–७५ दिन
४	आंशिक भुक्तानी (२५–३०%)	६०–९० दिन
५	सम्पत्ति पहिचान तथा जफत प्रक्रिया	७५–१२० दिन
६	सम्पत्ति नीलामी तथा असुली	९०दिनपछि निरन्तर
७	चरणबद्ध भुक्तानी	निरन्तर

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यसरी नेपालमा सहकारी क्षेत्रको वर्तमान संकट समाधानका लागि तत्काल नीतिगत हस्तक्षेप आवश्यक देखिन्छ। यस सन्दर्भमा नेपाल सरकारले “सहकारी पुनर्संरचना कोष” स्थापना गरी प्रभावित बचतकर्तालाई आंशिक निक्षेप फिर्ता प्रक्रिया शीघ्र सुरु गर्नुपर्छ। साथै, अनियमिततामा संलग्न सहकारी सञ्चालकहरूको सम्पत्ति पहिचान गरी जफत गर्ने प्रक्रिया कानुनी रूपमा अघि बढाउन आवश्यक छ। दीर्घकालीन रूपमा सहकारी प्रणालीलाई सुरक्षित, पारदर्शी र उत्तरदायी बनाउन सहकारी ऐन संशोधन गरी कडा नियमन तथा प्रभावकारी कार्यान्वयन व्यवस्था लागू गर्नु अत्यावश्यक छ।

लेखा एक वरिष्ठ चार्टर्ड एकाउन्टेन्ट हुन् । 

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SEBON Releases Margin Trading Facility Directives, 2082

 

The Securities Board of Nepal (SEBON) has introduced the “Margin Trading Facility Directives, 2082” under Section 118 of the Securities Act, 2063. This comprehensive framework replaces the decade-old Margin Trading Directives, 2074 and aims to bring greater transparency, risk control, and investor protection to leveraged trading in Nepal’s capital market.

For the first time, stock brokers can systematically offer margin trading facilities (दफ्लिंग करोबार सुविधा) to eligible investors, allowing them to buy listed shares by paying only a portion of the value upfront while borrowing the rest from the broker. The new directives strike a balance between expanding market liquidity and preventing excessive leverage.

Who Can Offer Margin Trading?

Only licensed securities brokers meeting strict eligibility criteria can provide this facility:

• Minimum paid-up capital: Rs 20 crore
• Must be a clearing member of the Central Depository
• Must hold necessary approvals from Nepal Stock Exchange (NEPSE)

Eligible Shares for Margin Trading

Only shares of stable, well-established companies qualify:

• Minimum 25 lakh publicly listed shares (excluding promoter/locked shares)
• Net worth equal to or higher than paid-up capital
• Profitable in at least two of the last three financial years
• At least two years have passed since IPO listing

Key Margin Requirements

Requirement	Percentage	Details
Initial Margin	Minimum 30%	Investor must deposit at least 30% of the market value upfront
Maintenance Margin	Minimum 20%	Ongoing minimum equity the investor must maintain
Leverage	Up to 3.33 times	Investor can control shares worth ~3.33 times their own margin

• Daily Mark-to-Market valuation is mandatory.
• Brokers may demand higher margins based on client risk profile, market volatility, or specific stock risk.

Margin Call & Forced Sale Mechanism

• If maintenance margin falls below 20%, the broker must issue a Margin Call.
• If the investor fails to top up within the stipulated time, the broker can sell the pledged shares to recover the loan.
• In extreme cases, brokers may accept shares from “A”, “B”, or “H” categories (at 60% of market value) as collateral.

Funding Sources & Exposure Limits for Brokers

Brokers may fund margin loans from:

• Own capital
• Bank borrowings
• Unsecured loans from shareholders or directors (subject to Companies Act compliance)

Strict Limits:

• Total borrowing by broker ≤ 4.5 times its net worth
• Total margin facility ≤ 5 times its net worth
• Exposure to any single client ≤ 10% of the broker’s total margin facility

Operational & Reporting Requirements

• Separate Margin Trading Account and Margin Trading Demat Account required
• Brokers must obtain Power of Attorney from clients for enforcement (optional but recommended)
• Daily reporting to NEPSE in prescribed format
• Monthly summary to SEBON
• Annual statutory audit of margin accounts within three months of fiscal year-end
• Mandatory client agreement covering margins, charges, margin call process, fees, and risk disclosures

What This Means for Market Participants

For Investors

• Greater access to leveraged positions with clear rules
• Higher discipline required due to daily mark-to-market and strict maintenance margin
• Improved transparency and protection against arbitrary broker actions

For Brokers

• New revenue stream (interest + fees) but with significant capital and compliance burden
• Stronger risk management systems mandatory
• Only well-capitalised, professionally managed brokers can participate

For the Market

• Expected increase in trading volume and liquidity
• Reduced systemic risk through regulated leverage
• More professional and transparent leveraged trading ecosystem

Our Advisory to Clients

As a leading accounting and advisory firm, we view these directives as a major positive step toward a mature capital market. However, they also introduce complex compliance, risk management, and financial reporting obligations.

The new Margin Trading Directives, 2082 mark Nepal’s capital market moving closer to international standards while safeguarding investor interests.

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SEBON Issues New Guidelines for Independent Review of Financial Statements for IPOs – 2082

 

The Securities Board of Nepal (SEBON) has released the “Guidelines for Review of Financial Statements Submitted for Preliminary Public Offering, 2082” under the special powers granted by Section 90 of the Securities Act, 2063.

This landmark guideline mandates an independent review (पुनरावलोकन वा जाँचबुझ) of financial statements by a qualified accounting expert in specific high-risk cases before a company can proceed with an IPO. The objective is crystal clear: enhance transparency, protect public investors, and ensure that only companies with credible and fairly presented financials are allowed to raise money from the capital market.

For promoters, CFOs, and companies planning to list on the Nepal Stock Exchange, these guidelines introduce a new layer of due diligence that will significantly raise the bar for IPO readiness.

When Must an Independent Review Be Conducted?

SEBON has defined clear, objective triggers. A review is required in the following situations:

1. General Criteria (applicable to all companies)

Last financial year (or interim) statements will be reviewed if:

• Trade receivables (or similar) exceed 75% of total sales revenue.
• Unpaid government taxes, duties or liabilities exist and, after adjustment, the company fails to meet IPO eligibility thresholds (net worth, profitability, etc.).
• Net worth falls to 50% or less of paid-up capital after adjusting contingent liabilities.

Last three financial years will be reviewed if:

• Related-party transactions with connected persons exceed 30% of fixed/business assets.
• Related-party transactions exceed 30% of average sales/expenses (government transactions excluded).
• Accounting policy changes or estimate revisions have boosted net worth/profit to meet IPO criteria.
• Auditor’s report contains qualifications that, if adjusted, would make the company ineligible.
• Restatements or prior-period adjustments have been made to qualify for IPO.

Combined or red-flag cases (last year + three years + interim) apply where multiple triggers exist, or where there are complaints, regulatory directives, suspected financial irregularities, or public events likely to materially affect the company’s financial position.

2. Sector-Specific Additional Triggers

• Manufacturing & Processing: Gross profit margin fluctuation >30% vs. previous two-year average; significant variance in interest/finance costs.
• Hotels & Tourism: Same margin and interest cost triggers + high receivables.
• Hydropower & Energy Infrastructure: Related-party spend >30% of project cost; IRR fluctuations under IFRIC-12; investment in other projects during main project construction.
• Investment Companies: High related-party exposure; investments outside permitted sectors; frequent changes in investment accounting policy.

3. Other Cases

• Public complaints or regulatory/government directives requiring scrutiny.
• Any other situation SEBON deems necessary.

Who Can Perform the Review? (Strict Eligibility)

Only highly experienced and independent professionals are allowed:

• Chartered Accountant with minimum 10 years experience, OR
• CA who has passed SEBON-recognised Forensic Accounting and Fraud Detection (FAED) examination + minimum 5 years experience.
• Must be a partner in a CA firm.
• No audit or consultancy relationship with the company in the last three years.
• Must submit a conflict-of-interest declaration confirming no relationship with the company or the issue manager.

What Does the Independent Expert Actually Review?

The scope is comprehensive and forensic in nature. The expert must:

• Verify related-party transactions at arm’s-length pricing.
• Assess reasonableness of accounting policy changes and estimate revisions.
• Test recoverability of receivables and adequacy of provisions.
• Evaluate going-concern assumptions and contingent liabilities.
• Scrutinize unusual or extraordinary income/expenses.
• Validate share-premium valuation methodology and assumptions.
• Analyse impact of auditor qualifications.
• Review compliance with all applicable laws (including Securities laws).
• Assess the reasonableness of projected financial statements against historical performance, industry conditions, and management capability.
• Provide adjusted financial statements along with a formal opinion.

The final report, including any required restatements, must be submitted directly to SEBON.

Role of the Issue Manager (Merchant Banker)

• Conduct initial due diligence and flag whether review is required.
• Recommend three eligible experts to SEBON.
• SEBON selects and appoints one.
• Company bears all costs of the review.
• Report must be submitted within 30 days (extendable by 10 days with justification).

Critical Disqualification

Companies whose latest audited financial statements carry an Adverse Opinion or Disclaimer Opinion are not eligible to apply for IPO.

What This Means for Your Company

These guidelines are a strong positive signal for the Nepali capital market. They:

• Reduce the risk of “window dressing” or aggressive accounting.
• Protect retail investors from over-valued or questionable IPOs.
• Increase credibility of companies that successfully clear the review process.
• Make IPO preparation more rigorous — but also more professional

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New Code of Ethics for Inland Revenue Department Officials: A Major Step Toward Transparent, Efficient & Taxpayer-Friendly Administration

 

New Code of Ethics for Inland Revenue Department Officials: Approved by the Director General on 2082/12/25 (effective immediately);

Nepal’s Inland Revenue Department (IRD) has released a comprehensive Code of Ethics 2082 for all its officers and staff working in the Department and its subordinate tax offices. This is the first major update since the 2074 Code and marks a significant upgrade in governance standards for Nepal’s tax administration.

For accounting firms, taxpayers, and businesses, this document is excellent news. It sets clear, enforceable standards of conduct that directly translate into faster service, greater transparency, and reduced opportunities for harassment or corruption.

Core Values That Will Govern Every Tax Official

The Code explicitly requires every IRD employee to uphold the following principles:

• Integrity & Honesty – Strict adherence to the law without any twisting or selective application.
• Impartiality & Non-Discrimination – No favoritism based on political affiliation, caste, gender, religion, or personal connections.
• Transparency & Accountability – Decisions must be objective, fact-based, and documented.
• Professionalism & Service Orientation – Courteous, prompt, and helpful behavior toward all taxpayers.
• Duty Consciousness – Timely completion of assigned responsibilities without delay or negligence.

Key Conduct Rules That Directly Benefit Taxpayers

1. Faster & Smoother Service Delivery Officials must provide services “quickly, easily, and effectively.” Unnecessary delays or “keeping files pending” are now explicitly prohibited.
2. Zero Tolerance for Gifts, Favors & Hospitality Accepting any gift, donation, or hospitality from taxpayers or their representatives is strictly banned.
3. Strict Confidentiality Taxpayer information must remain protected. Unauthorized disclosure is a serious breach.
4. No Private Meetings or Side Deals Unauthorized meetings with taxpayers or acting as their representative/agent is prohibited.
5. Proper Use of Digital Systems Greater emphasis on digital platforms, e-filing, and e-evidence. Officials are encouraged to maximize digital tools for quicker processing.
6. Political Neutrality Officials cannot participate in political activities or allow political influence to affect their duties.
7. Clear Dress Code & Identification Officials must wear the prescribed uniform/identification badge during office hours, making it easier for taxpayers to identify them.
8. Prompt Reporting of Problems Any difficulty in performing duties must be immediately reported to superiors instead of passing the burden to taxpayers.

What Acts Are Now Explicitly Prohibited?

The Code lists specific actions that will be treated as violations, including:

• Delaying or harassing taxpayers
• Demanding or accepting bribes (directly or indirectly)
• Misusing official position or government property
• Sharing confidential taxpayer data
• Engaging in political activities
• Working for any private organization or taking other employment without permission

How This Helps Your Business

As an accounting firm serving hundreds of clients across Nepal, we see this Code as a powerful tool for compliance and peace of mind:

• Reduced Compliance Risk – Clear rules mean fewer arbitrary demands or “gray-area” interpretations.
• Faster Refunds & Approvals – Timeliness is now a formal duty.
• Stronger Recourse – If any official violates the Code, taxpayers now have a clear ethical framework to reference when escalating complaints.
• Improved Taxpayer Confidence – A professional and ethical tax administration encourages voluntary compliance and long-term trust.

Our Advice to Clients

While the Code raises the bar for tax officials, we recommend clients continue best practices:

• Always communicate through official channels (IRD portal, official email, or recorded letters).
• Keep complete documentation of every interaction.
• Report any unethical behavior promptly to the concerned office head or the Department’s monitoring mechanism.
• Leverage digital services wherever possible – the Code actively encourages this.

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