Govt removes minimum threshold for foreign investment in IT sector

KATHMANDU: The government has eliminated the minimum threshold for foreign investment in the information technology sector.

The minimum threshold of foreign investment will be reviewed, according to Finance Minister Dr. Prakash Sharan Mahat, who unveiled the budget for Fiscal Year (FY) 2023/24 on Monday during a joint session of the Federal Parliament. Sectoral limits will also be established.

The minimum threshold for foreign investment in the information technology sector will be removed, according to Minister Dr. Mahat.

According to him, the sector that provides information technology services will be permitted to contribute up to 10% of its foreign exchange profits in order to establish contact offices in foreign nations and buy software, programs, and equipment.

According to Minister Dr. Mahat, approval will be given automatically to bring in investments in industries that are open to foreign investment, aside from those that need permission in accordance with the law.

He stated that arrangements would be made to ensure that no permission would be needed in order to reinvest income from foreign investments back into the business.