Kathmandu Metropolitan City Announces Property, House Rent, and Business Tax Concessions
In an effort to stimulate local economic activity and provide relief to its citizens, Kathmandu Metropolitan City (KMC), Municipal Executive Office, has released a public notice detailing various tax concessions on property, house rent, and business. The concessions come as part of KMC's Economic Act and aim to encourage taxpayers to take advantage of these exemptions by promptly filing their taxes.
Discounts and Exemptions: Key Highlights
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Loyal Taxpayers' Reward: Existing taxpayers who consistently file their annual tax, whether it be property or business tax, will be rewarded. If they file their taxes by the end of Poush 2080, they stand to receive a 10% discount on the tax amount for the current financial year.
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Hospitality Sector Relief: Any taxpayer who owns or has leased property for the operation of a hotel, resort, or movie house within the metropolitan area is eligible for a hefty discount. A generous 30% discount will be applied to their property tax, including any arrears, if the payment is made by the end of Poush 2080.
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Commercial Vehicle Parking Concession: A tax concession is available for buildings constructed specifically for commercial vehicle parking. The area designated for parking will be exempted from property tax for a decade from the date of construction.
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Boosting Local Industries: Businesses and industries operating under the 'One Ward One Model Enterprise Program' are set for a significant reduction. A whopping 95% exemption applies to their business tax and registration fee for the three years following registration.
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Empowering Underserved Groups: Special discounts are extended to industries, businesses, companies, and institutions registered and operated by women, Adivasi-Janajati, Dalits, disabled persons, and youths under 35 years of age. A 40% tax reduction is available for new taxpayers with a capital investment of up to five lakhs who file their tax by the end of Poush 2080. Regular tax filers from these groups will enjoy a 25% discount.
Extra Benefit for Kathmandu Residents
The KMC goes an extra mile to support taxpayers mentioned in the fifth point, who have permanent residence in Kathmandu Metropolitan City (holding citizenship, voter ID card, or migration certificate). They will be given a 50% tax discount.
The Revenue Department first published this tax relief script on 2080/04/11.
Takeaway
The KMC’s tax concessions underline its commitment to foster economic development, provide financial relief, and promote inclusivity in Kathmandu Metropolitan City. Taxpayers are encouraged to take advantage of these concessions by filing their taxes in a timely manner. By doing so, they contribute to the city’s growth while benefiting from substantial savings.
