KATHMANDU, June 26: Kathmandu Metropolitan City (KMC) has implemented a rental tax for individuals or organizations that lease vehicles within the metropolis.
The Finance Bill 2080 BS, has expanded the scope of tax collection, now including a rental tax on vehicles. Previously, this tax was applicable only on the lease amount received for land, buildings, houses, shops, garages, workshops, warehouses, terraces, sheds, land, or pools, in whole or in part. However, the metropolis has now extended the tax to cover vehicles from the fiscal year 2080/81 BS.
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According to KMC, this tax will be deducted at the source. The metropolis has set the rental tax rate at 10 percent per annum on the total lease amount.
However, taxpayers with an annual income of less than Rs 100,000 and no other sources of income may request tax exemption. The Finance Bill allows for a potential discount of up to 75 percent after assessment.
