In a bid to promote innovation and digital exports, the government has announced income tax concessions for IT service exporters and startups.

Presenting the budget for fiscal year 2025/26 in a joint session of the Federal Parliament on Thursday, May 29, Deputy Prime Minister and Finance Minister Bishnu Paudel said Nepali individuals who export IT services will be eligible for a 75% income tax exemption.

“As a result, IT professionals exporting services abroad will be taxed at a flat and final rate of 5%,” he stated.

Additionally, the government has offered full income tax exemption for startups with an annual turnover of up to Rs 100 million for the first five years of operation.

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