Nepal

{"ftc_utility":"low","fbar_trigger_notes":"US citizens with Nepali bank accounts exceeding USD 10,000 aggregate at any point during the year must file FinCEN 114 (FBAR). Nepal uses the Nepali rupee (NPR); accounts are common at banks such as Nepal Bank Limited, Himalayan Bank, or Nabil Bank. FBAR obligation applies regardless of whether income is locally sourced or remitted.","ftc_utility_reason":"Nepal income tax rates are relatively low at the lower income brackets (1% to 20%), and many expats earn below levels that generate significant Nepali tax liability. The FEIE often provides more benefit than FTC for typical expat income levels. No US-Nepal tax treaty exists, so no treaty-based FTC enhancements apply. FTC becomes more useful only for higher earners subject to the 30-36% brackets.","presence_day_count_notes":"Nepal does not issue standard long-term visas for most nationalities. US citizens typically enter on tourist visas valid for 15, 30, or 90 days, renewable in-country up to 150 days per year. Extended stays require non-tourist visa categories such as business, study, or residential permits, which are not straightforward to obtain. The 330-day physical presence test is achievable but requires careful visa management; overstays create legal risk.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":8400,"local_tax_rate_on_earned_income":0.25,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Nepal tax residents is subject to progressive income tax rates up to 36%. Nepal provides a tax-free threshold of NPR 500,000 (approximately USD 3,750 at current rates) with a 1% social security contribution on the first bracket. No special exemption exists for foreign pension income.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"No US-Nepal totalization or income tax treaty. US Social Security benefits received by a Nepal-resident US citizen are technically subject to Nepali income tax as foreign-source income. In practice, enforcement is inconsistent, but no legal exemption applies under Nepali domestic law.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No US-Nepal tax treaty exists. Roth distributions may be treated as foreign income by Nepal tax authorities. In practice, enforcement on foreign pension accounts is limited for expats, but no legal exemption exists. Qualified Roth distributions are not taxed in the US; Nepal has no mechanism to recognize the US tax-exempt status.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Nepal and the US do not have a bilateral tax treaty. US 401k and IRA distributions received by a Nepal tax resident would generally be treated as foreign-source pension or income and taxed under Nepal's progressive income tax rates. The effective rate depends on total income; the top rate is 36%. No treaty protection exists to reduce or eliminate Nepali tax on these distributions.","tax_rate":0.25,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.05,"notes":"Nepal taxes capital gains separately from ordinary income. Land and building gains held over 5 years are taxed at 2.5%; gains on assets held under 5 years are taxed at 5%. Securities gains listed on the Nepal Stock Exchange are taxed at 5% for individuals.","details":{"tax_type":"Capital Gains Tax","country_name":"Nepal","country_iso_code":"NPL","source_references":["Nepal Income Tax Act 2058 (2002)","Inland Revenue Department Nepal","KPMG Nepal Tax Profile"],"last_verified_date":"2026-06-03","general_description":"Nepal applies separate capital gains tax rates depending on asset type and holding period. Real property gains are taxed at 2.5% if held over 5 years and 5% if held 5 years or less. Listed securities gains for individuals are taxed at 5%. Gains on unlisted securities or other assets may be taxed as ordinary income at progressive rates up to 36%.","corporate_capital_gains":{"rate":0.25,"tax_treatment":"Taxed as ordinary corporate income at the standard corporate rate of 25%. Special industries may have different rates."},"individual_capital_gains":{"rate":0.05,"tax_treatment":"Real property held 5 years or less: 5%; held over 5 years: 2.5%. Listed securities: 5% withholding at source. Unlisted securities and other assets: taxed as ordinary income at progressive rates up to 36%.","long_term_rate":0.025,"securities_rate":0.05,"short_term_rate":0.05}}}

{"notes":"Dividends paid by Nepali companies are subject to a 5% withholding tax at source for resident individuals. Non-residents are subject to a 5% withholding tax under domestic law, which may be reduced by applicable tax treaty provisions. Dividends are generally not included in taxable income for recipients who have already had tax withheld.","rates":[{"rate":0.05,"type":"withholding","notes":"Standard withholding rate on dividends paid to resident and non-resident individuals. This is a final tax for residents on this income type."}]}