Freelance income earned through GigNepal is taxable income in Nepal, whether the client is in Kathmandu or Melbourne. Many freelancers only discover this when a bank asks questions about regular foreign remittances. Here is the short version. It is general information, not advice, so confirm the details with a registered accountant or the Inland Revenue Department (IRD) for your situation.

PAN: the one thing every freelancer needs

A Permanent Account Number (PAN) is your tax identity. You can register online through the IRD portal with your citizenship certificate and a photo, and it is free. GigNepal asks for your PAN on your payout profile so that payment records match the tax rules, and most Nepali banks will ask for it when foreign payments start arriving regularly.

Income tax on freelance earnings

Freelance income is taxed as business or professional income. You file an annual return for the Nepali fiscal year, which runs mid-July to mid-July, and pay tax on your profit after allowable expenses such as your laptop, software subscriptions, internet, and a share of home-office costs. Keep invoices and bank statements; GigNepal's wallet and withdrawal history gives you a clean record of what you earned and when.

TDS: tax deducted at source

When a Nepali company pays a service provider, it is generally required to deduct tax at source, commonly 15% on service fees, and deposit it with the IRD under your PAN. You then claim that amount against your annual tax. On GigNepal, when a Nepali client pays a Nepali freelancer, the platform records the withholding so both sides have a certificate. Payments from foreign clients are not subject to Nepali TDS, but the income is still declared in your return.

VAT: only above the threshold

Value Added Tax registration becomes compulsory once your annual turnover from services crosses the IRD threshold (NPR 2 million for services at the time of writing). Below that, you do not charge VAT. Above it, you register, add 13% VAT to invoices for Nepali clients, and file monthly or quarterly returns. Exported services to foreign clients are generally zero-rated, but the registration and filing obligations still apply, so get an accountant once you approach the threshold.

Receiving foreign currency legally

Nepal Rastra Bank rules allow freelancers to receive service income from abroad into a Nepali bank account. Keep the purpose code on inward remittances as service income, and keep copies of the GigNepal invoices that match each withdrawal. Avoid routing earnings through friends' accounts or informal channels; it creates problems later with both the bank and the IRD.

A simple monthly routine

• Download your GigNepal earnings statement and save it with your bank statement.
• Photograph or save every business expense receipt into one folder.
• Set aside 10 to 15% of each payout in a separate account for tax.
• Once a year, hand the folder to an accountant. It costs far less than fixing three years of silence.