KMC reiterates its claim on corporate rental tax; says tax evaders will face action

Published On: May 27, 2023 07:28 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 27: The Kathmandu Metropolitan City (KMC) has warned to take action against those who are dilly dallying to pay the corporate rental tax on pretext of not having clear provision in the law.

Issuing a public notice, the metropolis said it will carry out the collection of corporate rental tax rigorously. “As defined by the Constitution, collecting the corporate rental tax falls strictly under the scope of the local body,” reads the KMC notice.

As of now, the rental tax is being collected by the Inland Revenue Office of the federal government.  The Constitution of Nepal 2015, Local Government Operation Act 2017, KMC’s Revenue Act 2018 and Rent Management Directive 2022 have clearly mandated everyone concerned to pay the tax to the local government, according to the KMC.   

According to the law, property owners need to pay 10 percent of the rental income in tax to the government. The KMC will curtail fully or partially the facilities being provided to those who evade the rental tax, the KMC’s press statement says.  


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