Tax Clearance Certificate Nepal

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A Tax Clearance Certificate in Nepal is an official document issued by the Inland Revenue Department (IRD) confirming that an individual or business has no outstanding tax liabilities with the government. This certificate is mandatory for visa applications, foreign employment, business registrations, government tenders, and various legal transactions in Nepal.

What Is a Tax Clearance Certificate?

The Tax Clearance Certificate, officially known as "Kar Chukta Praman Patra" in Nepali, serves as proof that you have fulfilled all tax obligations under Nepal's tax laws. Issued by the IRD under the Ministry of Finance, this document verifies your tax compliance status and confirms no arrears exist against your Permanent Account Number (PAN).

The certificate has become increasingly important since 2024, when Nepal's immigration authorities and foreign embassies strengthened requirements for emigrants and visa applicants. Without this certificate, your visa application, passport renewal, or employment abroad documentation may face rejection or delays.

Who Needs a Tax Clearance Certificate in Nepal?

Several categories of individuals and entities require tax clearance certificates:

Individual Requirements:

• Nepali citizens applying for work permits abroad (Middle East, Malaysia, Korea, Japan)
• Individuals seeking permanent residency or student visas in foreign countries
• Government employees applying for study leave or foreign assignments
• Professionals renewing licenses (doctors, engineers, lawyers)
• Individuals involved in property transactions exceeding NPR 5 million

Business Requirements:

• Companies bidding for government contracts and tenders
• Businesses applying for import-export licenses
• Organizations seeking VAT registration renewals
• Companies undergoing mergers, acquisitions, or closures
• Entities applying for bank loans exceeding NPR 10 million

How to Apply for Tax Clearance Certificate Online

Nepal's Inland Revenue Department launched an online application system in 2023, significantly simplifying the process. Here's the complete step-by-step guide:

Step 1: Access the IRD Portal

Visit the official IRD website at ird.gov.np and navigate to the Online Services section. Click on "Tax Clearance Certificate Application" or use the IRD mobile application available on both Android and iOS platforms.

Step 2: Login with PAN Credentials

Enter your Permanent Account Number (PAN) and registered password. If you haven't registered online, click "New User Registration" and complete the one-time registration process using your PAN card details and mobile number.

Step 3: Select Application Type

Choose the appropriate application category:

• Individual Tax Clearance
• Business/Company Tax Clearance
• Specific Purpose Tax Clearance (for visas, tenders, etc.)

Step 4: Fill Application Form

Complete the online form with accurate information including:

• Personal/business details
• Purpose of certificate requirement
• Tax return filing history
• Last payment receipt numbers
• Contact information

Step 5: Upload Required Documents

Scan and upload the following documents in PDF format (maximum 2MB per file):

• Copy of PAN card (mandatory)
• Citizenship certificate (for individuals) or company registration certificate
• Last three years' tax return acknowledgments
• Recent passport-size photograph
• Purpose-specific documents (visa application copy, tender notice, etc.)

Step 6: Pay Application Fee

The online payment gateway accepts:

• Connect IPS
• E-Sewa
• Khalti
• Bank transfers
• Digital wallets

After successful payment, save the transaction receipt for reference.

Step 7: Submit and Track Application

Submit the completed application and note your application reference number. You can track your application status through the IRD portal using this reference number. Most applications receive status updates within 48 hours.

Offline Application Process at IRD Offices

If you prefer in-person application or face technical difficulties online, visit your nearest IRD tax office:

Documents to Bring:

• Original PAN card and photocopy
• Citizenship certificate (original and copy)
• Completed application form (download from ird.gov.np or collect at IRD office)
• Proof of tax payment (receipts for last three years)
• Purpose declaration letter
• Two passport-size photographs
• Application fee receipt

Process:

1. Collect application form from the information desk
2. Submit completed form with documents at the designated counter
3. Pay fee at the payment counter (cash or check accepted)
4. Receive acknowledgment slip with collection date
5. Return on specified date to collect certificate

Regional IRD Office Locations

• Kathmandu: Lazimpat, Kathmandu (Main Office)
• Pokhara: Newroad, Pokhara-8, Kaski
• Biratnagar: Traffic Chowk, Biratnagar-6, Morang
• Birgunj: Ghantaghar, Birgunj-4, Parsa
• Nepalgunj: Dhamboji Road, Nepalgunj-8, Banke

Required Documents Checklist

Processing Time and Fees

Processing Duration:

• Online applications: 3-7 working days
• Offline applications: 7-15 working days
• Express processing (additional fee): 1-3 working days
• Peak season delays (Chaitra-Ashad): Additional 5-7 days

Application Fees (2025):

• Individual application: NPR 500
• Business/company application: NPR 1,000
• Express processing surcharge: NPR 2,000
• Duplicate certificate: NPR 300
• Certificate translation (English): NPR 500

Processing times may vary based on your tax compliance history. Applications with clean records process faster, while those requiring verification of past returns or pending tax disputes take longer.

Certificate Validity and Renewal

Tax Clearance Certificates issued in Nepal have varying validity periods depending on purpose:

• For visa applications: Valid for 6 months from issue date
• For government tenders: Valid for 3 months
• For license renewals: Valid for 1 year
• For general purposes: Valid for 6 months

Renewal requires submitting a fresh application. There is no automatic renewal system. Ensure you apply at least 15 days before your certificate expires if ongoing validity is needed.

Common Reasons for Application Rejection

Understanding rejection causes helps you prepare better applications:

1. Incomplete Tax Returns Missing tax return filings for any year within the last three years leads to automatic rejection. Ensure all annual returns are filed before applying.

2. Outstanding Tax Liabilities Unpaid taxes, penalties, or interest dues must be cleared. Check your tax ledger online at ird.gov.np before applying.

3. Mismatched Information Discrepancies between PAN records, citizenship details, and application forms cause delays or rejection. Verify all information matches official documents.

4. Incorrect Document Uploads Unclear scans, wrong file formats, or oversized documents result in technical rejections. Use PDF format, ensure 300 DPI quality, and keep files under 2MB.

5. Pending Tax Audits If your account is under IRD audit or investigation, certificate issuance is suspended until audit completion.

6. Business Compliance Issues Companies with unfiled VAT returns, pending customs duties, or inactive PAN status face rejection.

Online vs Offline Application: Which to Choose?

Recommendation: Choose online application if you have reliable internet, digital payment access, and scanned documents ready. Opt for offline if you prefer personal assistance or lack digital infrastructure.

Troubleshooting Common Problems

Problem: Login Credentials Not Working Solution: Use the "Forgot Password" option or visit your registered IRD office with PAN card to reset credentials. Ensure you're using PAN number (not TAN or VAT number) as username.

Problem: Payment Gateway Failure Solution: Try alternative payment methods. If multiple attempts fail, screenshot error messages and contact IRD helpline (01-4212250) or email support@ird.gov.np with transaction details.

Problem: Application Status Stuck Solution: After 10 working days, call the IRD helpline with your application reference number. For urgent cases, visit the office with acknowledgment slip.

Problem: Certificate Contains Errors Solution: Report errors immediately through the IRD portal's grievance section. Corrections are typically processed within 3-5 days without additional fees if errors are IRD's fault.

Digital Innovations and Mobile App Usage

The IRD Mobile Application, launched in 2024, offers convenient features:

• Certificate application submission
• Application status tracking
• Payment history viewing
• Digital certificate download
• Push notifications for updates
• Offline form filling (sync when online)

Download "IRD Nepal" from Google Play Store or Apple App Store. The app requires one-time PAN verification through OTP sent to your registered mobile number.

Recent Regulatory Changes (2024-2025)

New Requirements:

• Mandatory digital signature for business certificates (implementation from Shrawan 2082)
• Biometric verification pilot program in Kathmandu valley
• Integration with passport issuance system for automated verification
• Extended validity period for visa-specific certificates from 3 to 6 months

Simplified Processes:

• Reduced documentation for taxpayers with 5+ years clean compliance record
• Same-day issuance for express applications submitted before 11 AM
• Elimination of physical signature requirement for online applications

Frequently Asked Questions

Can I apply without PAN? No, PAN registration is mandatory before applying for a tax clearance certificate. Register for PAN at any IRD office or online at ird.gov.np.

Is tax clearance required for all countries? Most destination countries for Nepali workers (UAE, Qatar, Malaysia, South Korea, Japan) require tax clearance. Verify specific requirements with the relevant embassy.

Can someone apply on my behalf? Yes, with a notarized power of attorney. The representative must present the original authorization document, their own identification, and your documents.

What if I haven't filed tax returns? File all pending returns before applying. Visit an IRD office or consult a tax consultant for assistance with retrospective return filing.

How to get certificate in English? Request English version during application or pay NPR 500 for translation services. Most IRD offices provide bilingual certificates upon request.

Can I appeal a rejection? Yes, submit a written appeal to the IRD Chief within 15 days of rejection, explaining your grounds and providing supporting documents.

Conclusion

Obtaining a Tax Clearance Certificate in Nepal has become increasingly streamlined with digital services, but thorough preparation remains essential. Whether applying online through the IRD portal or visiting an office in person, ensure your tax compliance is current, documents are accurate, and you understand specific requirements for your purpose.

The certificate serves as more than just a visa requirement—it's proof of your financial responsibility and legal standing in Nepal. Maintain clean tax records, file returns annually, and keep your PAN details updated to ensure smooth certificate processing whenever needed.

For the most current information, official forms, and real-time application status, always refer to the official Inland Revenue Department website at ird.gov.np or contact the IRD helpline at 01-4212250.