Microsoft, Google, Meta, Tiktok, Adobe, Netflix, Amazon, Apple are among the information technology companies paying tax in Nepal. It is beneficial not only from the point of view of income, but also from the point of view of expanding Nepal's reputation, that these world's largest and most prestigious corporate organizations are registered in Nepal and connected with the system here.
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The services of social media and information technology companies have become a way of life for common Nepalese people as well as all over the world. Mainly, social media is being used as an easy way to express one's freedom. In addition to that, the network is also used for business promotion, conducting various campaigns and carrying out social responsibility.
As a result, the first comment on an event today appears on social media. If a patient suddenly needs blood of any group, social media is useful. Getting and giving professional services has become easy. Through which the concerned person has been able to carry out his personal or professional work effectively. There has been a quantitative and qualitative intensification in the pace of work.
It is certain that the dependence on such companies and platforms will increase in the future and the company will also increase its income. That is why they have been practicing the system of paying taxes according to the size of their economic activities in Nepal. As a result, in recent years, information technology service providers have also been connected to the tax system of Nepal. This is a positive start. This has opened the way to vast possibilities.
The government announced the inclusion of electronic social networks in the tax system for the first time through the 2079/80 budget. Since then, social networking and information technology companies have started registering in Nepal. According to which, 18 companies registered with the Internal Revenue Department and having PAN numbers have been registered with the government in the financial year 2080/81 with a turnover of Rs.
For this transaction, those companies have paid 358.5 million 44 thousand rupees value added tax (VAT) and 5 million 81 million 75 thousand rupees electronic service tax to the government of Nepal. Thus, the government has received a total revenue of 416.7 million 19 thousand rupees from this new door. With one more company registered this year, the number of such companies has reached 19. In the future, the number of companies, their services, transactions and taxes will also expand.
From July to mid-November of the current financial year, the companies that had a turnover of 493 million 41 thousand rupees have submitted 64 million rupees 95 thousand rupees to the big tax payer's office for monthly VAT. Compared to the size of our population and users, this revenue of the state should be considered palatable. It can be considered as a sustainable and alternative sector for the income of the state.
Microsoft, Google, Meta, TikTok, Adobe, Netflix, Amazon, Apple are among the information technology companies paying tax in Nepal. It is beneficial not only from the point of view of income, but also from the point of view of expanding Nepal's reputation, that these world's largest and most prestigious corporate organizations are registered in Nepal and connected with the system here.
Looking at them, other similar companies can also be motivated to register in Nepal, do their business and pay taxes to the state. Through this, users will get access to options, the state will also earn income. Through such a process, Nepal's reputation may increase and create an environment for other types of investments.
The basis for registering any foreign company in Nepal is the market and business environment it sees here. Based on population alone, Nepal is not a big market for social media and information technology companies, but it is not a small one either. Being a relatively open society, the increased reliance on these companies' platforms is sure to increase in the future. For this, the government should make its legal or other legal arrangements business friendly. Their policies should be stable or reform oriented.
They should be held accountable to domestic laws, but not for harassment or malicious intent. With the supportive and positive environment of the government, big companies will open their offices in Nepal. That leads to more prestige, more investment and employment. Therefore, the government should be able to decide the strategy for long-term benefits by looking at the immediate signals.
