In a milestone event, Google LLC (Limited Liability Company) has been registered in the tax system of Nepal. Now, the world’s leading tech giant will be paying tax to the government, 2 percent of its income from Nepali consumers.
The company has entered the Nepali rulebook with the Large Taxpayer Office (LTO) under the Internal Revenue Department (IRD).
Nepal, like the rest of the world, has users of various Google services. If you were unaware, Android OS, Google Maps, Photos, YouTube, and various other apps are products of Google.
Raju Prasad Pyakurel, the spokesperson of the IRD, informed that Google has registered to pay the electronic service tax as necessary by the Government’s Financial Act of the current fiscal year 2079/80. “The various services and products provided by Google in Nepal have been registered to pay tax according to the electronic service tax,” he said.
Google registered in Nepal
According to the department, Google’s registration in Nepal comes in the name of its regional office in Singapore.
From the current financial year 2079/80, the government has imposed an electronic service tax at the rate of two percent on the transaction value of electronic services provided by non-residents to consumers in Nepal.
For the operation of the administration of the electronic service tax, IRD has assigned the duty to the large taxpayer office at Harihar Bhavan in Lalitpur. That means, Google will pay 2 percent of the tax on its total income in Nepal.
The government has long been making attempts to have foreign tech companies registered in Nepal to no avail. Prior to this, there were efforts to encourage firms to operate legally to help with data privacy and government revenues. In its absence, Nepali currency outflows without restriction in the absence of regulation. But the registration of Google in Nepal can mark a major precedent. It’s the first time such a large tech company has registered with the tax system of the country despite its comparatively underwhelming business prospects. On a positive note, it may lead to many other companies registering their service too.
Google has now become a legal entity operating in Nepal. Do you feel safer relating to your user data or what do you expect from it? Do share in the comments below.
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