Nepal, May 30 -- The government has expanded the scope of the digital service tax to include all types of digital transactions.

According to this provision, electronic services, including social media, must pay taxes determined by the Inland Revenue Department (IRD) within three months after the end of the Fiscal Year (FY). This tax must be filed electronically (online).

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Under this regulation, non-resident individuals providing electronic services to users in Nepal are required to pay a 2 percent tax on the transaction value. The digital service tax also applies to the sale of data collected from users residing in Nepal.

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