TikTok, Netflix and 20 Companies registered in Nepal-Paying Tax

International companies like Google, Facebook, TikTok, Netflix and among 20 companies have been registered in Nepal under Digital Service Tax (DST) for providing electronic services in Nepal.

According to Dhurba Prasad Pandey, Chief Tax Officer and Information Officer at the Large Taxpayers’ Office, 20 registered companies have begun paying a 2 percent DST on the transaction value for providing electronic services in Nepal.

The office reported that companies registered so far include Google Asia Pacific Private Limited, Google Ireland Limited, Google Digital Inc., LinkedIn Singapore Private Limited, NCS Pearson Incorporation Limited, Amazon.com Services LLC, and Amazon Web Services Incorporation Limited, among others.

Additionally, companies registered with the Large Taxpayers’ Office include Ipsco International Incorporation, Meta Platforms Ireland Limited, Microsoft Regional Sales Private Limited, Adobe Systems Software Ireland Limited, Netflix Private Limited, Zoho Corporation Private Limited, Prometric Japan Company Limited, the Association of Chartered Certified Accountants (ACCA), Pearson Education Limited, Apple Distribution International Limited, and Apple Service Private Limited.

Recently, TikTok have also been registered in Nepal after getting its PAN card. Now it will comply the rules and pay taxes.

According to the current Economic Act, individuals providing electronic services in Nepal must file their transaction details and pay a 2 percent tax on the transaction value annually. However, the Economic Act does not have clear provisions on how to bring companies that are not registered with the Large Taxpayers’ Office under the tax system or ensure they pay the tax.