Employer Tax Contributions

Tax Type	Rate	Base
Income Tax (PAYE)	Progressive (1%-36%)	Employee's Gross Salary (with allowances and benefits)
Social Security Fund (SSF)	20% (Employer)	Employee's Basic Salary
Provident Fund (PF)	10% (Employer)	Employee's Basic Salary
Gratuity	8.33%	Employee's Basic Salary

Filing & Compliance

• Monthly Deposits: Income Tax (TDS) and SSF contributions must be deposited by the 25th day of the following month. SSF contributions must be deposited within 15 days of the end of each month.
• Quarterly Statements: Quarterly TDS statements are typically due mid-October.
• Annual Returns: Annual income tax returns (often Form 10 or 03 for companies) are due by the end of Ashwin (typically mid-October) following the end of the fiscal year.

Income Tax Brackets

Income Range (NPR)	Tax Rate (Single)	Tax Rate (Couple)
Up to 500,000	1%	1%
Next 200,000	10%	10%
Next 300,000	20%	20%
Next 1,000,000	30%	30%

Employee Contributions

Deduction Type	Rate	Cap
Provident Fund (PF) & Social Security Fund (SSF)	1/3rd of taxable income or actual contribution	NPR 500,000
Life Insurance Premiums	Actual premium paid	NPR 40,000
Health Insurance Premiums	Actual premium paid	NPR 20,000

Personal Allowances

• Remote Area Allowance: Up to NPR 50,000 depending on location.
• Pension Income: Additional deduction of 25% of the first tax slab or actual pension, whichever is lower.
• Female Tax Credit: 10% rebate on tax liability for women with only remuneration income, if not opting for couple status.