26 September 2024, Kathmandu
The Nepal Chamber of Commerce (NCC) has raised concerns over the recent decision of the Internal Revenue Department (IRD) to not extend the deadline for income statement filing for sole proprietorships with an annual turnover of up to NPR 10 million and entities with zero turnover.
NCC Demands Extension of Income Statement
The NCC believes this decision could negatively impact businesses, especially given the current fragile state of Nepal’s economy.
The NCC has also expressed disapproval regarding the rule that extends the filing deadline only until Mangsir ends for taxpayers with an annual turnover of up to NPR 250 million, and until Poush 20 for those with turnovers exceeding NPR 250 million.
Call to Reconsider the Decision
In its statement, the Nepal Chamber of Commerce highlighted that the economy is in a weakened state, and the private sector’s morale is low. The new decision, which is contrary to the existing legal provisions, could further damage the business environment.
The NCC has called on the Internal Revenue Department to reconsider and reverse its recent decision, which limits the extensions for income statement filing deadlines.
The NCC emphasized Section 98(1) of the Income Tax Act, 2058, which clearly states that any person required to file an income statement under Section 96 can apply in writing to extend the deadline if there are reasonable grounds.
The IRD is required to notify the applicant in writing regarding the decision on their request for a deadline extension.
The NCC expressed that the decision to restrict previous deadline extensions will place undue stress on business owners. It urged the department to revert to the earlier, more flexible deadline extensions.
Impact on Economic Revival
The Nepal Chamber of Commerce also noted that while the economy needs a revival to enhance revenue sources, the IRD’s latest decision goes against the current internal revenue policies.
The chamber is of the view that the department should instead work on strengthening its software capabilities to better support businesses in reconciling their accounts, especially during this difficult economic period.
In this context, the Nepal Chamber of Commerce has called on the Internal Revenue Department to restore the previous income statement filing deadline to its original timeline, ensuring fairness and ease of compliance for both small and large businesses.
For more: NCC Demands Extension of Income Statement
