- Quick and Reliable
Closing an inactive business entity requires a systematic tax deregistration to eliminate ongoing compliance overheads. Present Consultants Private Limited streamlines the complete closure of business PAN, resolving final tax filings, managing structural audits, and avoiding severe non-compliance penalties under Nepalese tax laws.
₨ 5,000.00
The termination and formal closure of business PAN is an essential legal procedure for companies, partnerships, and sole proprietorships wrapping up operations in Nepal. Regulated under the statutory parameters of the Inland Revenue Department (IRD), a business entity cannot simply abandon its tax identity.
Once a Business Permanent Account Number is issued under Section 78 of the Income Tax Act, 2058, the entity is legally bound to file routine tax returns. To legally dissolve this status, the enterprise must follow a set administrative method: submitting an online cancellation request through the IRD portal, compiling and filing closing financial accounts, liquidating or settling outstanding commercial liabilities, and clearing a comprehensive field or desk tax assessment. The closure method formally ends the business’s tax liability and deletes its active reporting status from the master government registry.
Corporate tax profile cancellations are primarily governed by Section 78 of the Income Tax Act, 2058, Rules 23,24 the Income Tax Rules, 2059, and Section 11 of the Value Added Tax (VAT) Act, 2052 (if VAT-registered). To legally execute a business PAN closure, an entity must submit closing balance sheets, file final income returns under Section 96, clear all withholding taxes (TDS) under Sections 87, 88, and 89, and satisfy dissolution parameters under Section 55 to obtain an official Tax Clearance Certificate.
Under Chapter 22 of the Income Tax Act and relevant tax laws of Nepal, failing to maintain active compliance triggers immediate financial penalties. Specifically, Section 117(1)(a) imposes an income tax non-filing penalty of NPR 5,000 per income year or 0.1% of gross income, whichever is higher, for each un-submitted annual return, while missing monthly VAT returns under the Value Added Tax Act, 2052 results in a flat fine of NPR 2,000 per tax period. Furthermore, Section 119 mandates an interest rate of 15% per annum on all unpaid tax and TDS liabilities from their original due date. Finally, for administrative non-compliance, Section 117(1)(b) levies a record-keeping fine equal to 1.5% of gross turnover or NPR 1,000, whichever is higher, for failing to maintain accurate corporate tax accounts and documentation.
