2025 Update on IT Services & Digital Economy in Nepal (Fiscal Year 2082/83)

1. VAT Removed on Digital Payments

The government has removed VAT (Value Added Tax) on digital payments like online fund transfers. This was announced by Finance Minister Bishnu Paudel in the new budget to encourage more people to go cashless.

1. NPR 73 Crore Allocated for Startups

The budget includes NPR 730 million (73 crore) for startup loans. Young entrepreneurs in Nepal can take loans at just 3% interest.

1. Social Security Allowance

NPR 109 billion has been allocated for social security allowances starting from mid-July.

1. Export of IT Services – Tax Benefits

Companies exporting IT services from Nepal will get a 75% income tax discount. Only 5% income tax will be charged on the income from such services.

1. Tax Concession for Small IT Businesses in Nepal

If your annual income is up to NPR 10 crore, you will get a 5-year income tax break.

1. Cryptocurrency Rule

Any crypto assets found within Nepal will be seized and added to the government's fund.

1. NTC Share to Public

30% of Nepal Telecom (NTC)'s shares will be available for the public to invest in.

1. Illegal Mobiles – IMEI Must

Every mobile phone imported into Nepal must have a registered IMEI number to stop illegal imports.

1. New National Benefit Card

A new type of state benefit card will be introduced and integrated with the Nagarik App to help manage and deliver government programs more efficiently to eligible citizens

1. Geo-stationary Satellite Base

Nepal plans to establish its own geo-stationary satellite base for space and communication use.

1. Super Krishak App for Farmers

The government has upgraded farming apps like Super Krishak and Super Krishak Pro, which now include:

1. Weather updates
2. Crop prices and tools
3. Insect detection using AI
4. Free training
5. Problem-solving networks (Krishak Sanjal)
6. AI-powered agriculture doctor

1. Esewa integration for easy payments

The Pro service costs just Rs. 15 for 3 days.

1. Consultation Work from Nepal for Foreign Clients

Swat share platform to allow Nepalis to give professional consultations to clients abroad.

1. Support for “Make in Nepal” and “Made in Nepal” Products

Strong focus on promoting locally made goods and services.

1. Map & Design Services Digitalization

LiDAR (Light Detection and Ranging) technology will support accurate digital mapping and design, and will also aid in map verification and clearance.

1. Robotics & AI in Telemedicine

Healthcare services will start using AI and robotics to provide digital and remote medical services (telemedicine).

1. Online Land Hold/Release System

Land ownership status (hold/release) can now be updated online.

1. License Distribution from Provinces

Driving licenses and metadata certificates will be linked with the National ID and issued from provincial offices.

1. SIM Card and Internet Only with National ID

You will now need a National ID to get a new SIM card or install the internet.

1. Government Land for IT Data Centers

The government will give land to domestic and international IT companies that want to open data centers in Nepal.

1. Digital IT Park in Kathmandu

A new Digital IT Park will be built in Kathmandu to support the growing tech sector.

1. Ride Sharing Ban in Gandaki Province (Province 4)

Public transport services like ride-sharing and private buses have been stopped in Gandaki. Over 15,000 public vehicles are not operating in protest of the government's new transport law.

1. TikTok Meditation Feature in Nepal

TikTok has launched a new guided meditation tool in Nepal, under its mental health and wellbeing section.

1. This adds to its earlier Sleep Hours feature.

TikTok supports this from a $4.23 million global mental health education fund.

Nepali IT companies now allowed to invest abroad up to USD 1 million

Nepali IT companies can now invest up to 10 lakh US dollars (about USD 1 million) from Nepal into foreign countries. However, this investment amount must not exceed 50% of the company’s average income over the last three years. This change was introduced through the Foreign Investment (Fourth Amendment), which was recently updated in July. This update is expected to help Nepali IT firms expand their reach and do business globally.