Tax Clearance Certificate (कर चुक्ता प्रमाणपत्र) for Companies in Nepal

What a Tax Clearance Certificate Certifies — and What It Does Not

Rule 26(1) of the Income Tax Rules 2059 lets a taxpayer ask for a certificate that all the tax payable under the Act up to a given date has been paid. Rule 26(2) tells the office what to do with the request: check that the return adds up, collect any unpaid tax, fees, interest and withholding tax with its interest, and then issue the certificate. That is the whole legal footing. There is no section of the Income Tax Act 2058 that creates the certificate; how long it stays acceptable, and the online process, are matters of IRD practice.

Three things follow, and each is commonly got wrong:

• It is issued per fiscal year. You ask for clearance for a year — FY 2082/83, say — and the certificate carries that year and its own number.
• It is issued on your own return, not on a final assessment. The IRD says the certificate is given once the tax shown on the self-assessed return is paid. If an audit later finds more income, the IRD’s own words are that the liability to pay that tax stays with the taxpayer. A clearance is not a closed file.
• It is issued on request. Nothing in the Rules requires a company to obtain one every year. You get it when somebody — a bank, a tender, the OCR — asks for it. The reason to keep one current is that those requests tend to arrive at short notice.

Who Asks for It

These are the uses we could source. Where the requirement comes from practice or from a secondary source rather than a rule we have read, the table says so.

The Conditions an Inland Revenue Office Checks

The IRD’s published guidance lists what has to be true before the certificate is issued:

• the return for the year has been filed and the tax on it paid;
• returns for earlier years have been filed, and there are no tax arrears;
• for a taxpayer who files financial statements, the financial statements and the payment vouchers are submitted;
• under Rule 26(2), any unpaid fees, interest and withholding tax (with its interest) are collected first.

Rule 26 itself is written about income tax. In practice the office’s collection section confirms that nothing is outstanding before the certificate is signed, so an unfiled eTDS return or an unpaid VAT period is worth clearing before you apply rather than finding out at the counter.

How a Company Gets It: The D-03 Route

A company files its annual return on Form D-03, and for D-03 filers the certificate is an office file, not a download. The IRD’s own guidance says only D-01 filers can print the certificate themselves, and the Inland Revenue Office Kalanki’s taxpayer menu, dated July 2025, sets out the company route as a counter process.

Documents for the application

• An application with a Rs 10 stamp attached.
• The income tax return for the year with its schedules (Kalanki lists annexes 2, 5, 10 and 13).
• Tax payment vouchers for the year.
• The audit report and audited financial statements.
• eTDS details for the year.
• Last year’s tax clearance certificate.
• Proof of rent paid, where the company rents premises.
• An authority letter if someone other than the director applies.

At the office

The file moves between the sections that check the return, the payments and the arrears before it is signed and stamped. At Kalanki that is three rooms; at your office the route will differ, but the checks are the same. The Taxpayer Service Office at Sandhikharka’s citizen charter gives the service time as the same day if nothing is outstanding, and otherwise after the arrears are paid. That is the only charter we found that lists the service at all.

Downloading It Online

For an individual filing D-01 or D-02, the IRD documents a self-service path: ird.gov.np → Taxpayer Portal → General → Taxpayer Login → KYT Update (confirmed by a one-time code to your mobile) → Tax Clearance → choose the fiscal year → print.

For a company, two changes are worth watching. The IRD began trialling a new taxpayer portal from Bhadra 9, 2083, and reporting at the launch said taxpayers would be able to log in and download the certificate themselves, with the old portal continuing alongside. Separately, the Taxpayer Service Offices are being wound up, with their services moving online. Neither report says the D-03 counter process has ended, and we have not seen it confirmed for companies. Until it is, ask your Inland Revenue Office which route your company is on.

How to Verify a Tax Clearance Certificate

The IRD runs a public lookup at ird.gov.np/tax-clearance (कर चुक्ता खोजी). Enter the PAN, the fiscal year and the certificate number, and it shows whether a certificate was issued. Anyone you hand the certificate to can check it there, so check it yourself first.

Why It Gets Refused, and the Fix

If you believe a refusal is wrong, the IRD’s guidance is to take it to the head of the office concerned or to the Inland Revenue Department.

When to Apply This Year

The certificate follows the return. The FY 2082/83 return was due at Ashoj end 2083 (17 October 2026); a company that applied for an extension in time has until at most Poush end 2083 (14 January 2027). So the clearance for FY 2082/83 becomes available once the return is in and paid — and tenders, loan renewals and EXIM renewals in the second half of the fiscal year will ask for that year. If you missed the return deadline without an extension, see company tax filing deadlines: the return is late, not lost, and the clearance comes after it is filed and paid.

What Other Guides Get Wrong

• Fees of NPR 500 to 2,000, with an “express” tier. The IRD says there is no fee; only the Rs 10 stamp on the application.
• “Every business must obtain one annually.” Rule 26 issues it on request. What is mandatory is filing and paying; the certificate proves it.
• “Three to seven working days.” The one charter that lists the service says the same day when nothing is outstanding. Waiting is caused by arrears and missing papers.
• Online steps presented as universal. The self-print route is documented for D-01 filers. A company on D-03 applies at its office.
• No citation at all. None of the pages ranking for this search names Rule 26 or rule 40(2)(घ) of the procurement rules.

Checklist

Frequently Asked Questions

Is there a fee for a tax clearance certificate in Nepal?

No. The IRD states that no fee is charged, provided no tax is outstanding. The application carries a Rs 10 stamp. Pages quoting fees of NPR 500 to 2,000 are wrong.

How long does it take to get a tax clearance certificate?

The same day if nothing is outstanding, according to the Taxpayer Service Office citizen charter that lists the service; otherwise after the arrears are paid. In practice the time goes on clearing gaps — unfiled eTDS, unpaid interest, a missing audit report — not on issuing the certificate.

Can a company download its tax clearance certificate online?

Not yet confirmed. The documented self-print route on the IRD taxpayer portal is for D-01 and D-02 filers. A company files D-03 and applies at its Inland Revenue Office with the return, vouchers, audit report and eTDS details. The new taxpayer portal, on trial since Bhadra 9, 2083, was announced with self-download of the certificate; ask your office whether it covers your company yet.

How do I verify a tax clearance certificate?

Use the IRD’s lookup at ird.gov.np/tax-clearance: enter the PAN, the fiscal year and the certificate number.

Do I need a tax clearance certificate every year?

Not by law. Rule 26 of the Income Tax Rules 2059 issues it on request. What every company must do each year is file its return and pay its tax; the certificate is the proof, asked for by tenders, banks, the OCR and others.

Can I bid for a government tender without a tax clearance certificate?

Often, yes. Rule 40(2)(घ) of the Public Procurement Rules 2064 accepts the tax clearance certificate, certified proof that the income tax return was filed, or proof that its filing deadline was extended, for the period the procuring entity specifies. Read the bid document for the year it asks about.

I missed the income tax return deadline. Can I still get a tax clearance?

Yes, once you file the return and pay the tax with the Section 117 fee and Section 119 interest. The certificate is issued when nothing is outstanding; a late return delays it but does not bar it.