Hi freelancers, I’ve been working with clients from US for about 2-3 years now. And have been earning roughly $5,000 per month. And I also hired other people to work for the job that I take from the clients and I pay them as well monthly via my personal account.
And this is purley freelancing. I am not working inside of any foreign company. I work with clients 1-1.
All of my clients pay via Wise or Payoneer.
From my knowledge till now, everything sent via Wise is counted as remiitance and goverment already takes remittance tax from that so I don’t need to pay taxes on that. Is that correct?
Veteran freelancers, please explain in detail about freelancing tax in Nepal and other laws.
If so $5k/m, that makes $60k/year.
What tax bracket is that? How much should I be paying?
View on r/Nepal by thatnepaliguy1
I would suggest opening an USD account. It will be deposited as dollar, bank will deduct 5% and fill your taxes. You can see it in your tax history which is really important if you want to make your income legal(banking and other purposes). Otherwise you can fill it by yourself as a freelancer by visiting IRD office which I have not tried yet. Another benefit of dollar account is you have dollar card without $500 limit and can use it as you wish.
$5,000 per month web development ho ?? Ke aaru skill pone xa??
It’s better to consult with a young CA… young over old because young ones maybe more familiar with ideas of freelancing. My income from freelancing is negligible so I am not bothered. However hiring someone to do your work is not legal unless you’re registered as business. It is specially bad for the ones you hire because their income cannot be taxed.
Malai tapai k garnuhunxa vanera sodhna man lagyo..
I would suggest you look at this comment here:
[https://www.reddit.com/r/Nepal/comments/1023nia/comment/j2rflyh/?utm_source=share&utm_medium=web2x&context=3](https://www.reddit.com/r/Nepal/comments/1023nia/comment/j2rflyh/?utm_source=share&utm_medium=web2x&context=3)
The above comment says 1% however this has now changed to 5%. Seem you need to go to your bank and tell them to take 5% as TDS on those earnings.
At the end of the year you can ask for a certificate from the bank and then go to your nearest IRD if you want to get the tax clearance certificate.
Legally speaking,since U are living in Nepal (resident for tax purposes) u have to pay taxes here as per the income tax Act.There is an option to self file your taxes. It’s 60k USD so you are already in the highest tax bracket of 39% (it’s progressive actually starts from 0%). There are ways to save taxes through SSF contribution and life insurance (total up to NPR 540k).
But a lot of people do not pay taxes here and misuse the broken and corrupt tax system.
For foreign earnings, the amount that you receive from outside will be considered remittance for Nepal. The current tax rate is 5%. Previously, it used to be 1%. No additional tax us deductible.
The bank deducts the tax at the time of transmission of amount from outer source. However, I don’t think Payoneer will be considered a valid system of payment. For the bank to deduct tax on income, you must have a valid account in Nepal.
Bro what do you do to earn $5k/m? I’m in the same boat but haven’t crossed $3k/m.
How do you find such works as freelancer?
I also want to do freelancing
Any suggestions?
I am directly getting from the company but at irregular times. I don’t even know if I should pay taxes or not.
Nope, you dont have to pay further taxes
Just the remittance tax is enough which is self deducting
k kaam ho hou yesto
My friends pay 5% of remittance and that’s it, before it was 1%. It’s remittance and they say tax should not be paid.
How do you receive money through Wise? I have tried it and found no option for Nepal to receive. Don’t know about Payoneer