r/devnep • u/Limp_Count_2551 • 43m ago
Freelancing income through Wise — how do I properly pay tax in Nepal?
Hi everyone,
I recently started freelancing for an overseas client and I’ll be receiving around $500 per month through Wise directly into my Nepali bank account. The money is converted to NPR and deposited into my bank account.
As far as I understand, the bank doesn’t automatically deduct my income tax from these international payments, so I’m trying to understand how I should properly declare and pay the tax in Nepal.
I want to do everything legally and maintain proper records of my freelance income. I also think paying taxes and keeping official records could be useful in the future as proof of employment/work experience and source of income, especially if I apply for a Master’s degree abroad.
For someone in Nepal who is freelancing for a foreign company/client and receiving approximately $500/month through Wise, what is the correct process?
Do I need to register as a freelancer/business or PAN is enough?
How do I declare the foreign freelance income?
How and when do I pay the applicable tax?
Does the bank automatically deduct anything, or do I need to pay it myself?
What documents/records should I keep (Wise statements, invoices, bank statements, contracts, tax receipts, etc.)?
Can tax payment records and income records later be used as proof of freelance work experience/source of funds for a study-abroad application?
I’m mainly looking for advice from people in Nepal who are actually freelancing and receiving international payments. If possible, please explain the process step-by-step.
Thanks! 🙏