After much anticipation, Google LLC, the world’s largest digital company, has finally registered in Nepal, a move that will bring benefits to the US-based entity under Nepal’s tax system. This landmark event also makes Google the first and largest tech company to be registered in Nepal. The Nepalese government recently passed a bill to tax internet-based businesses, and Google’s registration under this law is a significant achievement for the government.
As per Raju Prasad Pyakurel, the spokesperson for the Inland Revenue Department (IRD), Google has registered to pay the electronic service tax required under the current fiscal year’s 2079-80 Government Financial Act. All the various services and products provided by Google in Nepal will be subject to this tax. The company is registered under the name of its regional office in Singapore. The IRD has assigned the task of administering the electronic service tax to the large taxpayer office at Harihar Bhawan in Lalitpur. As part of this registration, Google will pay a two percent transaction tax on every transaction in Nepal.