5% annual income tax offer with legal recognition to remote workers

Chaitra 29, 2081

Kantipur Reporter

5% annual income tax offer with legal recognition to remote workers

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In order to solve the current economic challenges of the country, the report of the High-Level Economic Reforms Suggestion Commission, formed by the government, has suggested that remote work should be legally recognized and promoted. In the 'Roadmap for Economic Reforms' report submitted by the Commission to Finance Minister Vishnu Paudel on Friday, it has been asked to include remote work (work that can be done without being present at the office) in the Labor Act.

The committee formed under the coordination of former finance secretary Rameshwar Khanal has suggested that remote work be classified as a new type of employment in the law. Citing the example of India's e-labor portal, the report says that remote workers can be registered online at the labor office.

"Nepali citizens and non-resident Nepali will be allowed to live in Nepal and work as remote workers of foreign companies," the report says, "Nepalese citizens or non-resident Nepalis who have done remote work while regularly employed by foreign companies can open a commercial bank account in a convertible currency and receive money from abroad in such an account." It has been suggested to make an arrangement so that the monthly contribution made for security can be deposited in Nepal's social security fund.  The

report proposes a flat 5 percent annual income tax on income earned through regular remote work in foreign companies. In addition, it is mentioned that non-resident Nepalis with foreign passports can also be registered as remote workers and if they want to take part of their earnings abroad, they should not require pre-approval.

Along with this, if foreign companies want to keep regular workers in remote work, the report suggests that there should be a clear legal arrangement regarding the framework of the contract with the workers and non-financial benefits such as leave and dispute resolution.

Kantipur

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