⏰
Key Deadline: Poush end, 2083 BS
Apply for all provisions before this date to qualify for waivers
⚖️ This article summarizes provisions contained in the Finance Bill 2083/84. Implementation is subject to enactment and any amendments approved during the legislative process. Readers should verify the final Finance Act and consult a tax advisor before making decisions.
What is the Tax Amnesty?
The Finance Bill 2083/84 introduces landmark tax relief provisions — the most significant amnesty for Nepal businesses in recent memory. If you have outstanding taxes for Income Tax, VAT, or Excise Duties, the government offers a clear path: pay the principal (plus a small 1% surcharge), and all accumulated interest, additional fees, and penalties are wiped clean.
💡 Think of it as a reset button. Years of compounding interest and penalties can be erased by settling the core tax amount before Poush end, 2083 BS. This window will not return.
Provision 1 — General Waiver: Pay Principal, Forget the Interest
The most significant relief covers Income Tax, VAT, and Excise Duties with outstanding balances filed or due by Jestha 15, 2083.
1
Steps
1
Pay the full remaining principal tax amount outstanding
2
Add a 1% surcharge on top of that principal amount
3
Submit payment by Poush end, 2083 BS
✓
All interest, additional fees, and penalties are cancelled
⚠️ Exclusion: Telecommunication service providers are explicitly excluded from this general waiver provision.
Income tax-specific rule: Returns and taxes owed for years prior to 2079/80 are completely excused if you file for FY 2079/80 through 2082/83 and pay by the deadline.
Provision 2 — Court & Tribunal Disputes: Settle Out of Court
If you have a tax case pending in the Revenue Tribunal, Supreme Court, or other judicial bodies, the Finance Bill gives you a one-time opportunity to end the legal battle.
2
Steps
1
Withdraw the pending case or appeal from the court
2
Pay the full disputed tax amount plus a 1% additional fee
3
Submit payment by Poush end, 2083 BS
✓
Government withdraws its own appeals — all fines, interest, and late fees waived
⚖️ Why settle? Legal disputes can drag on for years. Even if you believe you have a strong case, settling now eliminates years of legal costs, management distraction, and the risk of a compounding penalty judgment. With the 1% surcharge, you know your exact cost today.
Provision 3 — Inactive PAN Registrations: Cancel or Resume
Business owners with inactive PANs — those that have not filed returns since FY 2081/82 — have two options:
3
Your options
- To cancel your PAN: Apply for cancellation by Poush end 2083 after paying only the tax for FY 2082/83. You will not be asked for older, missing returns.
- To resume your business: Pay the FY 2082/83 tax and restart without liability for older gaps.
- Automatic cleanup: If no action is taken by the deadline, inactive PANs will be automatically cancelled — you lose the choice of resuming on your own terms.
- Never had a PAN? Apply for a PAN, file and pay for FY 2079/80 through 2082/83 by the deadline, and all prior years are fully excused.
Provision 4 — Civil Unrest Losses (Gen-Z Movement)
Businesses that suffered uninsured losses during the Gen-Z movement receive specific relief:
4
Relief items
- Damaged, uninsured stock can be claimed as a tax-deductible expense for the current year
- VAT already paid on lost items can be claimed as input tax credit — provided the damage has been reported to the local Inland Revenue Office with a proper assessment
- Star hotels that were damaged may import replacement materials duty-free (one-time)
- Casinos unable to operate during the unrest can receive a waiver on royalties and renewal fees for that period
Provision 5 — Customs Duty & Post-Clearance Audits
For businesses with unpaid duties identified during customs checks or post-clearance audits:
5
Steps
1
Pay the full amount of customs duty, excise, and VAT from assessments made by Baisakh end 2083
2
Complete this payment by Poush end 2083
✓
All penalties and interest accrued until your application date are waived
Provision 6 — "Old World" Taxes: Automatic Cancellation
The Finance Bill officially removes outstanding arrears from taxes that no longer exist:
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Cancelled taxes
| Tax type | Status |
|---|---|
| Hotel Tax | Cancelled |
| Entertainment Tax | Cancelled |
| Sales Tax (pre-VAT) | Cancelled |
| Income Tax Act 2031 arrears (inactive entities) | Cancelled |
How to Claim Your Waiver — Step by Step
To ensure your waiver is processed correctly, follow these steps before the deadline:
A
Review your outstanding balance
Log in to the IRD Taxpayer Portal (taxpayerportal.ird.gov.np) and check all outstanding tax amounts, interest, and penalty notices across Income Tax, VAT, and Excise.
B
Calculate the 1% surcharge
For each outstanding principal balance, the settlement amount is: Principal × 101%. This is the total you pay — all accumulated interest and penalties are then cancelled.
C
Make the payment
Pay through IRD-approved banking channels or the IRD electronic payment system. Use the correct revenue code for each tax type. Always note your PAN and tax period on the payment slip.
D
Submit your application
Submit a written application to your Inland Revenue Office or Customs Office, with proof of payment, before Poush end 2083. Keep copies of all documents.
E
Confirm the waiver
Follow up with your tax office to obtain written confirmation that the interest and penalties have been formally waived and the case is closed. This protects you in future audits.
Quick Reference — All Provisions at a Glance
| Provision | Who it applies to | Required action | Deadline | Benefit |
|---|---|---|---|---|
| General waiver | Income Tax / VAT / Excise arrears filed by Jestha 15, 2083 | Pay principal + 1% | Poush end 2083 | All interest, fees & penalties cancelled |
| Court/tribunal disputes | Cases at Revenue Tribunal or Supreme Court | Withdraw + pay disputed tax + 1% | Poush end 2083 | Govt withdraws appeals; all fines waived |
| Inactive PAN — cancel | No filing since FY 2081/82 | Apply for cancellation + pay FY 2082/83 tax | Poush end 2083 | Clean exit; no back-year liability |
| Inactive PAN — resume | Same as above, wanting to continue | Pay FY 2082/83 tax | Poush end 2083 | Resume without liability for older gaps |
| Unregistered taxpayer | Taxable income but no PAN | Get PAN + file & pay FY 2079/80–2082/83 | Poush end 2083 | All pre-2079/80 years fully excused |
| Customs audit duties | Post-clearance audit assessments | Pay duty + VAT + excise from assessments | Poush end 2083 | All penalties & interest waived |
| Old-world taxes | Hotel/Entertainment/Sales Tax arrears | None — automatic | Automatic | Arrears cancelled from record |
🚀 Key Takeaway: The Poush end 2083 deadline is your one opportunity to close years of compounding tax liabilities at their face value. The 1% surcharge is a known, fixed cost. Accumulated interest is eliminated. Whether you have a pending court case, an inactive PAN, or simply years of unfiled returns — act before the deadline. Consult your tax advisor to review your exact balance and confirm eligibility for each provision.
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