22nd August 2021, Kathmandu
A social messaging app such as Viber, Messenger, Whatsapp, etc. is a commonly used app among all people.
The Office of the Auditor General has suggested bringing the service providers including Viber, Messenger, Skype, WhatsApp, WeChat, Emo, etc., who provide internet telephone service through internet service, under the tax net.
The accountant general has also pointed out that applications like Zoom, Bevex, and Cisco, which conduct meetings, seminars, should also come under the tax threshold.
Pursuant to Section 67 (6) (h) of the Income-tax Act, 2058, a person who conducts business transmitting information through media such as wire, radio optical fibers, or satellite is considered to be a source of payment in Nepal. Is According to the same act, the source of the payment made in relation to the activities conducted in Nepal is to be in Nepal.
The accountant general has stated that the applications for providing services through the internet are running smoothly in Nepal and some services are being paid from a US dollar account.
As per Article 67 of the Income Tax Act, as it falls within the taxable area of Nepal, no service provider has been registered before providing the service. Therefore, legal and policy reforms should be made to register these service providers and collect revenue, ”the accountant general said in his 58th annual report.
In order to widen the revenue base by bringing all kinds of economic activities under the tax net, the Accountant General has suggested that online advertisements on e-commerce and social media including Viber, Messenger, Skype, WeChat, and Facebook should be brought under the tax net.
