Section 70 : Tax chargeable on non-resident person providing water traveling/rafting, air transport or telecommunications service in Nepal

1) The taxable income of any non-resident person who operates water travelling, charter service or air transport in any income year shall consist of the amounts derived from the following acts except the amounts derived from trans-shipment in that year:-

a) Carriage of passengers departing from Nepal, or

b) Carriage of the mail, animals or goods dispatched from Nepal.

2) The taxable income of any non-resident person who carries on a business of cable, radio, optical fibre or satellite communication in any income year shall consist of the amounts derived from the dispatch of news or information through any device established in Nepal, whether originated in Nepal or not.

3) Tax shall be levied on the amounts to be included in the taxable income of any non-resident person pursuant to sub-section (1) or (2) at the rate specified in sub-section (7) of Section 2 of Schedule I.

Provided that, –

a) Those amounts need not be computed in computing the tax payable in respect of any due taxable income of that person,

b) The expenses related to the computation of those amounts shall not be allowed to be deducted in computing that due taxable income and

c) That person shall not be entitled to any facility of tax adjustment from the amount of tax payable by that person.

Explanation: For purposes of this Section, “non-resident person” means a resident entity within the group of associated entities with head offices outside Nepal.