The government has issued guidelines to implement the five percent foreign trips tax imposed on outbound tourists.
The Inland Revenue Department has brought into force the guidelines related to foreign tourism fee 2023. Travel agencies who sell packages to Nepali nationals visiting foreign countries will have to submit to the government five percent of the total amount paid by the clients, read the new guidelines.
The new rule is applicable also for the business firms. The firms that take Nepali citizens on foreign trips for their business purpose will have to pay a five percent tax of the incurred expenses, according to the guidelines.
The guidelines have asked the firms concerned to submit the fee amount at the taxpayers’ office, inland revenue offices, medium level taxpayers’ offices or large taxpayers’ offices. The amount should be filed within 25 days of the following month of the travel date.
Announcing the budget for FY 2023/24, the government has slapped a five percent tax on foreign tour packages for Nepali nationals.
“Failing to submit the due amount, it will be subject to a 2.5 percent additional fee on top of settling the interest of 15 percent of the due amount annually,” states the guidelines.
