Government to provide tax holiday of 25% to Large Scale Industries.

Government of Nepal is making a final draft on Industrial Enterprise Rule with the facility of providing 25% tax holiday in income tax to those companies providing 500 plus direct employment for more than 6 months. The draft Rule prepared by Ministry of Industry proposes to provide 40% holiday in income tax if the company provides 50% employment to women, schedule caste and physically disable out of total employment.

The draft Rule also proposes to provide 90, 80 and 70% tax holiday in income tax for 10 years from the date of commencement of transactions for those Industries to be established respectively in the highly underdeveloped, underdeveloped and least developed regions.