chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Securities Act 2063

Chapter 12 Special Provisions on Retirement Saving

Section 65 : Retirement payments
1) For purposes of computing retirement payment income earned by any natural person from the interest based on contribution held in any approved retirement fund or retirement payment from the Government of Nepal, the following provisions shall apply:-
a) Retirement payments made by the fund for the interest in the fund have to be included in the income and
b) Notwithstanding anything contained in clause (a), if such payment is made in a lump sum, the payment to be set by subtracting fifty percent of the paid amount or five hundred thousand rupees, whichever is higher, from the amount so paid shall be deemed as the profit made by the person from the disposal of his non-business taxable assets.
2) For purposes of computing the profit made by any natural person from the interest in any retirement fund that has not obtained approval, the following provisions shall apply:-
a) Where a resident person has made the payment, tax shall be imposed on the beneficiary in that amount as withholding of tax finally, and
b) Where a non-resident person has made the payment, that amount has to be included in computing the income of the beneficiary.
Explanation:
For purposes of this Section, “profit made from the interest in any retirement fund that has not obtained approval’ means if retirement payments made from a retirement fund which has not obtained approval to a beneficiary natural person for his interest in the fund exceed the amounts of retirement contributions paid by that person to that fund for his interest in the fund, the amount to the extent of such excess.
Provided that payment made from any non-contributory fund shall not be considered as benefit from an interest held in the retirement fund not approved.

Securities Act 2063

Chapter 12 Special Provisions on Retirement Saving

Section 66:
1
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1 Repealed by the Financial Act, 2075.
Securities Act 2063

Chapter 13 International Tax

Section 68 : Foreign permanent establishments
1) Notwithstanding anything contained in Section 3, any foreign permanent establishment of a nonresident person situated in Nepal shall be liable to pay the tax payable on the income of such establishment, subject to other provisions of this Act.
2) The income of a person having ownership of a foreign permanent establishment shall be separated from the income of that establishment, pursuant to Section 69.
3) Tax shall be imposed on the permanent establishment referred to in clause (b) of Section 3 in the income sent abroad by the foreign permanent establishment of a non-resident person situated in Nepal.
4) The income sent abroad in any income year by the foreign permanent establishment of a non-resident person situated in Nepal shall be equal to the amount of dividends distributed by that foreign permanent establishment in that year.
Securities Act 2063

Chapter 13 International Tax

Section 70 : Tax chargeable on non-resident person providing water traveling/rafting, air transport or telecommunications service in Nepal
1) The taxable income of any non-resident person who operates water travelling, charter service or air transport in any income year shall consist of the amounts derived from the following acts except the amounts derived from trans-shipment in that year:-
a) Carriage of passengers departing from Nepal, or
b) Carriage of the mail, animals or goods dispatched from Nepal.
2) The taxable income of any non-resident person who carries on a business of cable, radio, optical fibre or satellite communication in any income year shall consist of the amounts derived from the dispatch of news or information through any device established in Nepal, whether originated in Nepal or not.
3) Tax shall be levied on the amounts to be included in the taxable income of any non-resident person pursuant to sub-section (1) or (2) at the rate specified in sub-section (7) of Section 2 of Schedule I.
Provided that, –
a) Those amounts need not be computed in computing the tax payable in respect of any due taxable income of that person,
b) The expenses related to the computation of those amounts shall not be allowed to be deducted in computing that due taxable income and
c) That person shall not be entitled to any facility of tax adjustment from the amount of tax payable by that person.
Explanation: For purposes of this Section, “non-resident person” means a resident entity within the group of associated entities with head offices outside Nepal.
Securities Act 2063

Chapter 13 International Tax

Section 71 : Foreign tax adjustment
1) Any resident person may claim for adjustment of tax for the foreign income tax paid by that person in any income year to the extent of the tax paid for assessable foreign income of that person in that year.
2) When computing the foreign tax adjustment claimed pursuant to sub-section (1), it shall be done as follows:-
a) Separate computation has to be done for assessable foreign income having source in each country and
b) Foreign tax adjustment claim shall not be made, in respect of the assessable foreign income, at the rate of tax higher than the average rate of tax of Nepal payable by that person in that year in respect of each computation.
3) Any foreign income tax paid in respect of the assessable foreign income of any year who is not entitled to foreign tax adjustment facility pursuant to sub-section (1) by virtue of the limit provided for in clause (b) of sub-section (2) may be dealt with as follows:-
a) It may be carried forward in the coming year, and
b) It shall be deemed to be paid in respect of the assessable foreign income in the future income year of the person having a source in the country where such foreign income has been earned.
4) Notwithstanding anything contained in sub-section (1), any person may give up a claim for foreign tax adjustment to which he is entitled in any income year and also claim for credit for foreign income tax for which such adjustment facility is available in that year.
Explanation:
For purposes of this Section,-
(a) “Assessable foreign income” means the following income to be included in the assessable income earned by any resident person in any income year from any employment, business or investment:-
(1) Income earned from a foreign source, or
(2) Income of a non-resident person deemed as distributed to that resident person under Section 69, irrespective of the source.
(b) “Average rate of tax of Nepal” means the rate resulting from the division of tax amount to be paid by the person referred to in clause (a) of Section 3 in any income year, prior to adjustment of any foreign tax of that person in that year, by his or her taxable income of that year and multiplication by one hundred.
Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 73 : International agreements
1) If any income of any person is taxable pursuant to this Act or the laws in force and the same income is also taxable in a foreign country, the Government of Nepal may conclude an international agreement with the foreign country for the avoidance of double taxation.
2) This sub-section shall be applicable in cases where, pursuant to any international agreement concluded with Nepal, the competent authority of the other country requests the Department to collect in Nepal the amount payable by any person who is in arrears of that amount, pursuant to the taxation law of that other country.
3) If sub-section (2) is applicable, the Department may, for the purpose of sending that amount to that competent authority, send a notice in writing to the person who is in arrears of tax and require him to pay such amount to the Department within the date mentioned in that notice.
4) This sub-section shall be applicable in cases where any international agreement contains a provision under which Nepal has to exempt income or payment or has to apply the reduced tax rate to income or payment.
5) If sub-section (4) is applicable, any of the following entities shall not be entitled to enjoy tax exemption or tax deduction facility:-
a) An entity that is considered a resident of the other party of the agreement for purposes of the agreement and
b) Where fifty percent or more portion of the vested ownership of that entity is owned by natural persons or by the entities in which any natural person has no interest and, for purposes of the agreement, the persons or entities are residents of both Nepal and of the other country party to the agreement.
Explanation:
For purposes of this Section, “international agreement’ means any treaty or agreement containing the following provisions, concluded with any foreign government and applicable to Nepal:
(a) To avoid double taxation and prevent fiscal evasion, or
(b) To render reciprocal administrative assistance in the implementation of tax liability.

Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 74 : Taxpayer’s rights
1) The taxpayer shall fulfil the duties referred to in this Act.
2) In the context of paying tax pursuant to this Act, a taxpayer shall have the following rights:-
a) The right to be treated with honour,
b) The right to receive information on tax-related matters pursuant to the laws in force,
c) The right to have an opportunity to furnish proof in defense on tax-related matters,
d) The right to appoint a legal practitioner or auditor for defence and
e) The right to have tax related secret matters inviolable except as otherwise mentioned in this Act.
Explanation:
For purposes of this Section, “taxpayer” means a person on whom tax is imposed and collected as mentioned in Section 3.
Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 75 : Public circular
1) In order to bring about uniformity in the implementation of this Act, simplify tax administration, and give guidelines to the officers of the Department as well as the persons affected by this Act, the Department may issue written public circulars accompanied by explanations, on the provisions made in this Act.
2) The Department may publish and transmit the circular issued pursuant to sub-section (1) on the website of the Department or a newspaper of the national level or other electronic means for the information of the punlic.
3) The Department shall be compelled to take action according to the circular issued pursuant to sub-section (1) unless and until such circular is revoked.

Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 76 : Advance ruling
1) If any person makes an application in writing to the Department for the removal of any confusion as to the application of this Act to any arrangement proposed or accepted by such person, the Department may issue its version by an advance ruling as prescribed, by notifying the person in writing.
2) Notwithstanding anything contained in sub-section (1), the Department shall not be entitled to issue an advance ruling referred to in sub-section (1) on any matter of confusion that occurred in the implementation of this Act in cases where such matter is
sub judice
in the court or has already been decided by the court.
3) In cases where any person acts as follows prior to the issuance of an advance ruling pursuant to sub-section (1), the Department shall be compelled to implement this Act as per that ruling until the ruling issued to that person remains valid:-
a) If the full and actual statements of the matter related to that ruling are presented to the Department and
b) f the arrangement corresponds to the point mentioned in the application made by that person for the ruling.
4) In cases where the public circular issued pursuant to Section 75 and the advance ruling issued pursuant to sub-section (1) are mutually contradictory, priority shall be given to the matters mentioned in the advance ruling in the case of the person to whom such ruling has been issued.
5) Prior to the issuance of the advance ruling pursuant to sub-section (1), the Department may give an opportunity to the applicant to furnish further statements, if any, in person or through his representative.
Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 77 : Format of documents
1) The Department may, from time to time, so specify the mode of submission and formats of necessary documents, statements including income returns, tax deduction statements and formats of records that are required under this Act and the rules framed under this Act, the notices, information and details required for the effective implementation of this Act are incorporated.
2) The Department shall make available the formats referred to in sub-section (1) in the Department and in any other places specified by the Department and through any other means.
3) The department may so prescribe that information or return or documents to be submitted by any person to the Department have to be submitted through electronic means.

Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 78 : Permanent account number
1) The Department shall, subject to this Act, issue a permanent account number to any person for purposes of identifying that person.
Provided that the entity may provide such permanent account number upon completion of the procedure under this Act upon approval from the Department. The taxpayer receiving the permanent account number issued as such cannot operate transactions of import or export till the period as prescribed by the Department.
2) The Department may order any person to mention his/her permanent account number in any income return, statement, version, or other document to be used for purposes of this Act.
3) The Department may specify the circumstances where any person has to show or mention his/her permanent account number.
4) Notwithstanding anything contained in sub-section(1), the person referred to in sub-section (3) shall obtain a permanent account number prior to making any transaction.
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4A) A person making transitions by obtaining a permanent account number pursuant to sub-section(4) shall update such details of registration as specified by the Department in the biometric system within the prescribed period.
1
5) Notwithstanding anything contained in sub-sections (1), (2), (3), or(4), no person shall be free from tax obligation for the reason that he has not obtained a permanent account number.
1 Inserted by the Financial Act, 2076.

Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 78A: Suspension of permanent account number
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1) The Department may suspend the permanent account number in any of the following cases:-
a) If the transaction is left,
b) In the case of an entity, if it is closed, sold or transferred or such entity ceases to exist for any other reason. C) In the case of an individual ownership, if such owner dies,
c) In the case of registration of mistake.
2) The procedure for the suspension of the permanent account number shall be as prescribed.
1 Inserted by the Financial Act, 2076.
Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 79 : Service of documents
1) Any document required to be given or delivered to any person pursuant to this Act shall be deemed to have been given or delivered to that person in the following circumstances:-
a) Where it is sent to the fax, email or such other electronic medium of that person,
b) Where it is delivered by hand, to whom it has to be delivered or to his or her representative of staff and to the manager or the representative or staff as assigned by him or her entity, in the case of the entity, or
c) Where it is sent by a registered post to his resident, office, business or other address to the extent known.
2) Any document so signed, encrypted or encoded through computer technology or written in it as indicating the name and designation of the competent authority of the Department and issued, served or given pursuant to this Act shall be deemed to have met requirements.
3) If a document cannot be served pursuant to sub-sections (1) and (2), information thereof may be given by broadcasting or publishing a notice of the related order by radio, television or in any newspaper of national circulation, in the name of the concerned person. Information so given shall be deemed to have been received by the concerned person.

Securities Act 2063

Chapter 14 Tax Administration and Authentic Docunments

Section 80 : Defective documents
1) Any document issued under this Act shall not be deemed defective in the following circumstances:
a) Where it is consistent with this Act substantially, and
b) Where the person who is addressed in a document is normally indicated in the document.
2) If any documents issued by the Department pursuant to this Act contains any error and the error does not give rise to any dispute as to the interpretation of this Act or the fact of any specific person, the Department may make amendment in the document for purposes of rectifying such error.
Securities Act 2063

Chapter 15 Records and Information Collection

Section 81 : To maintain records or documents
1) Each person who is liable to pay tax pursuant to this Act has to maintain in Nepal the following necessary documents, in addition to the documents required to be maintained in the format or type as prescribed by the Department or to be certified or authenticated by audit or in another manner:
a) Necessary information and documents supporting the income returns or any other documents required to be submitted to the Department pursuant to this Act,
b) Documents assisting to assess the tax payable by him
c) Documents supporting the deduction of expenses.
2) Except as otherwise specified by the Department by issuing a notice in writing, the documents referred to in this Section have to be safely retained for five years from the date of expiration of the concerned income year.
3) In cases where any document referred to in sub-section (1) is not in the Nepali or English language, the Department may, by issuing a notice in writing, require the concerned person to submit the translated version of such document in the Nepali language done, at such person’s own cost, by a recognised translator under the law in force.
4) The Department may, upon prescribing the standards and procedures, give approval to any person to issue invoices through electronic means and to keep the documents required to be kept under sub-section(1) through electronic means.
Securities Act 2063

Chapter 15 Records and Information Collection

Section 82 : Powers of Department to obtain information
1) The officer of the Department may do the following in order to implement this Act:
a) To have full or unhindered access to any premises, places, documents or properties situated in Nepal, subject to the laws in force,
b) To obtain any portion of or duplicate copy of the document, including an electronic copy of the documents to which there is access pursuant to clause (a),
c) If the concerned officer thinks that the document to which there is access pursuant to clause (a) is an evidence that could be necessary to assess the tax liability of any person pursuant to this Act, to take such document in his custody, and
d)If any person having access to any document who is requested to provide a duplicate copy of such document does not provide it, and the officer thinks that such document is kept in any property in any form, to take such property in own custody in order to have access to such document.
2) No officer shall be entitled to exercise the powers referred to in sub-section (1) without having authority in writing from the Department. If in entering to any premises or places in exercise by any officer of the powers referred to in sub-section (1), the possessor of such premises or places or the person having access to any concerned document or property requests to show the authority of the Department, such officer has to show such authority to them.
3)If any officer of the Department who enters any premises or places in the exercise of the powers referred to in sub-section (1) so requests, the possessor of such premises or places or the person having access to any concerned document or property has to provide all proper facilities and assistance for the effective use of the powers.
4) The Department may hold in its custody the document or property taken in its custody pursuant to clause (c) or (d) of sub-section (1) until the following time:
a) In the case of any document taken in custody pursuant to clause (c) of sub-section (1) until the time the document is required to assess the tax liability of any person or for any other action pursuant to this Act, and
b) In the case of any property taken in custody pursuant to clause (d) of sub-section (1) until the time when access to the document in question is gained and it is taken in custody.
5) The person whose document is taken in custody pursuant to sub-section (4) may inspect such document and may obtain a copy of or copy down a portion of such document at his/her own cost within office hours and under supervision as prescribed by the Department.
6) Notwithstanding any provision made on privilege or public interest in respect of having access to the documents required for the implementation of this Act, the provisions contained in this Section shall apply in that respect.
Explanation:
For purposes of this Section, “possessor” means, with respect to any premise or place, a person having ownership of, manager of the premise or place or any other person remaining there.
Securities Act 2063

Chapter 15 Records and Information Collection

Section 83 : Power to obtain information by notice
1) The Department may, by giving a notice in writing, order any person with or without liability to pay tax pursuant to this Act to do as follows:-
a) To submit any information specified in the notice within the time specified in the notice, also by preparing any document,
b) To be present at the Department in the place and time specified in the notice before the officer of the Department for inspection on the tax-related matters of that person or any other person,
c) To submit, for purposes of inspection, any document mentioned in the notice that is under his control at the time when that person is examined pursuant to clause (b).
2) Any person who is to be examined pursuant to clause (b) of sub-section (1) shall have the right to have legal or other representation during such examination.
3) Notwithstanding any provision made on any privilege or on public interest in respect of having access to the documents required for the implementation of this Act, the provisions contained in this Section shall apply in that respect.

Securities Act 2063

Chapter 15 Records and Information Collection

Section 84 : Governmental secrecy
1) Any officer and other employee of the Department shall maintain secrecy of all documents and information that come to his custody or knowledge in the course of carrying out his duty pursuant to this Act.
2) Notwithstanding anything contained in sub-section (1), any officer of the Department may disclose, as follows, the document or information referred to in sub-section (1) to the following persons:-
a) To the extent that it is necessary to carry out the duty of that officer pursuant to this Act,
b) If it  is so ordered by any court or tribunal in respect of administrative review or action pursuant to this Act,
c) Before the Minister for Finance,
d) If it is necessary to disclose for purposes of any other financial law,
e) If it is necessary for any person in the service of the Government of Nepal for any acts relating to revenue or statistics, before such a person,
f) If it is necessary in the course of carrying out the duty, before the Auditor General or any person authorized by the Auditor General or
g) Before the competent authority of the government of any country with which the Government of Nepal has concluded an international agreement, to the extent as provided for in such agreement in that respect.
3) Any person, court, tribunal, body or official who obtains any document or information pursuant to sub-section (2) shall keep secret such document or information except to the minimum extent required.