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India vs Nepal: tax rates compared
India and Nepal share the same income tax rate: 30%. The 200-country average is 28%: both sit above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IN | NP | Difference |
|---|---|---|---|
| Income Tax | 30% | 30% | match |
| Corporate Tax | 30% | 25% | IN +5 pp |
| VAT | 18% | 13% | IN +5 pp |
| Capital Gains Tax | 12.5% | 5% | IN +7.5 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: PWC Worldwide Tax Summaries — India (Individual, Taxes on personal income) · as of 2026-05-12 |
| Nepal | 30% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Schedule 1 (clause 1) · as of 2026-01-02 |
| Difference | 0 pp | displayed rates match |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Nepal | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +5 pp | India higher |
India has a corporate tax rate of 30%, 5pp above Nepal's 25%. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| India | 18% | Source: PWC Worldwide Tax Summaries — India (Corporate, Other taxes) · as of 2026-05-11 |
| Nepal | 13% | Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2005-01-01 |
| Difference | +5 pp | India higher |
India has a VAT rate of 18%, 5pp above Nepal's 13%. The 181-country average is 15%: India sits above it, Nepal sits below it. India's figure is dated 2026-05-11 and Nepal's 2005-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| India | 12.5% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2024-07-23 |
| Nepal | 5% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Section 95Ka(2)(a) · as of 2026-01-02 |
| Difference | +7.5 pp | India higher |
India has a capital gains tax rate of 12.5%, 7.5pp above Nepal's 5%. The 175-country average is 10.3%: India sits above it, Nepal sits below it. India's figure is dated 2024-07-23 and Nepal's 2026-01-02, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| India | 0% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2026-05-12 |
| Nepal | 0% | Source: Inland Revenue Department, Nepal — official site (list of administered tax laws) · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
India and Nepal share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.