Nepal compliance guides for payroll and accounts
Four rules shape most payroll and accounts work in Nepal: input VAT credit needs a tax invoice, TDS is withheld at payment and deposited within 25 days after the month ends, SSF takes 11% from the employee and 20% from the employer, and the fiscal year runs in Bikram Sambat from Shrawan to Ashadh. Each guide below gives the rule, its source and how EK ERP handles it.
Last reviewed: 2026-10-10. This is general information, not tax advice.
Guides.
VAT invoicing and IRD registers in Nepal
Under VAT Act 2052 section 17(1), input VAT credit is claimed on a tax invoice. How EK ERP records VAT invoices and exports the VAT registers.
TDS on salary and supplier payments in Nepal
TDS on salary follows the slabs; on services it is 15%, or 1.5% to a VAT-registered person; deposit within 25 days of month end. How EK ERP handles TDS.
Social Security Fund (SSF) contributions in Nepal
Social Security Fund contributions in Nepal are 31% in total: 11% from the employee and 20% from the employer. How EK ERP works them out on payroll.
Bikram Sambat dates and the Nepali fiscal year
Nepal's fiscal year runs from Shrawan to Ashadh in Bikram Sambat; FY 2083/84 sets this year's tax slabs. How EK ERP keeps payroll and books in BS dates.
Best ERP software in Nepal (2026): a comparison on the rules that matter
EK ERP, NitiERP, TallyPrime, Dynamics 365 Business Central and Odoo compared on IRD billing, TDS, SSF, Bikram Sambat payroll, attendance, stock and pricing.
Best HR and payroll software in Nepal (2026): a comparison on the rules that matter
EK ERP, NepalHRM, RigoHR, Hajir HR, Nimble HRMS and Bidhee HRIS compared on TDS, SSF, Bikram Sambat, attendance devices, accounting and pricing.
Related: payroll software, VAT invoicing, accounting, salary tax calculator and pricing.
Nepal compliance, answered.
What are the main payroll and tax rules for a business in Nepal?
Claim input VAT on a tax invoice (VAT Act 2052 s.17(1)); withhold TDS at payment and deposit it within 25 days after the month ends (Income Tax Act 2058 s.90); contribute SSF at 11% employee and 20% employer for enrolled staff; and keep the fiscal year in Bikram Sambat.
Does EK ERP handle VAT, TDS and SSF?
EK ERP works out TDS, SSF and CIT on every payroll run, exports the e-TDS salary sheet for each BS month and exports the sales and purchase VAT registers for IRD upload. It is not IRD-approved billing software.
Is this tax advice?
No. This is general information, not tax advice. It was last reviewed on 2026-10-10. Check the current Act or ask your auditor before you file.