- Quick and Reliable
Filing your dynamic turnover-based annual return accurately is a core statutory requirement under the Inland Revenue Department (IRD) directives. Present Consultants Private Limited streamlines your D-02 transaction-based assessment submission, ensuring perfect Tax Compliance in Nepal for mid-tier sole proprietors.
₨ 5,000.00
For growing resident natural persons operating unregistered VAT sole proprietorships or retail firms, the D-02 return provides a simplified turnover taxation track. Under the administrative rules of Tax Compliance in Nepal, this specialized tax return enables mid-tier traders and merchants to calculate and settle their annual income tax using direct percentage rates applied against gross sales. The procedural method requires analyzing annual revenue sheets, entering total business turnover directly via the IRD Integrated Tax System (ITS) portal, and completing validation steps at your designated Inland Revenue Office (IRO) within three months of the fiscal year’s close.
Pursuant to Section 4(4) of the Income Tax Act, 2058, read together with the operational clauses of Schedule-1, specific resident natural persons generating business income solely from a Nepal-sourced enterprise fall under a turnover tax mechanism. To qualify for filing the Income Tax Return- D-02, the Inland Revenue Department’s directives outline distinct financial ranges: the business’s annual turnover must range between Rs. 30 Lakhs (NPR 3,000,000) and Rs. 50 Lakhs (NPR 5,000,000), or its net annual profit must fall between Rs. 3 Lakhs (NPR 300,000) and Rs. 5 Lakhs (NPR 500,000). According to Section 96, this turnover statement alongside the calculated tax amount must be submitted by Ashoj end (mid-October) of each following fiscal year. Additionally, the Income Tax Directives emphasize that individuals registered under Value Added Tax (VAT), or those deriving income alongside other sources like employment, are legally barred from using Form D-02.
Failing to submit your annual D-02 return on time creates costly statutory liabilities for your business. Pursuant to Section 117(1)(Kha) of the Income Tax Act, 2058, late submission or failure to file an income tax return within the designated timeline triggers a flat administrative penalty of Rs. 5,000. Furthermore, if the taxpayer fails to deposit the turnover-based tax liability by the annual closing date, interest accumulates under Section 119 at the rate of 15% per annum, calculated and compounded from the initial due date until the payment is cleared. Non-compliance additionally blocks the automated issuance of a Tax Clearance Certificate (TCC), halting vital commercial processes such as bank loan applications and local municipal license renewals.
