Google registered with the Nepali tax net

KATHMANDU: Google, a leading internet company, has formally registered with Nepal’s tax administration. After the Nepali government implemented a new law to regulate and tax foreign internet-based companies, it is the first sizable company to do so.

According to Raju Prasad Pyakurel, the Inland Revenue Department’s spokesperson, the government will now impose a two percent tax on each transaction made on any Google platform.

The government has added a new clause to the budget for the current fiscal year that permits the registration of websites where financial transactions take place. This is the first time a registration like this has been accounted for in the budget. Furthermore, as part of the provision, a digital service tax has been implemented.

The Nepali government is hoping that Google’s action will increase pressure on other international tech behemoths, like Facebook, to register with the country’s tax system.