Section 10 : Exemptible amounts

The following amounts shall be exempted from tax:

a) Amount exempted from tax granted to any person entitled to tax exemption facility as provided for in a bilateral or multilateral treaty or agreement concluded between the Government of Nepal and any foreign country or international organisation,

b) Amount received by any natural person for doing employment in the governmental service of a foreign country,

Provided that, –

(1) The person has to be a resident or non-resident person only because of doing employment and

(2) Such amounts have to be paid from the governmental fund of that country.

c) Amount received by a natural person referred to in clause (b) who is not a citizen of Nepal or by his or her nearest family member from the governmental fund of a foreign country,

d) Amount received by a non-Nepalese citizen appointed in the service of the Government of Nepal under the term and condition of tax exemption,

e) All kinds of allowances provided by the Government of Nepal, Provincial Government or Local Level as social security,

f) Amounts received as gift, inheritance or scholarship except the amounts required to be included in computing income pursuant to Sections 7, 8 or 9,

g) Amounts received by an organisation entitled to an exemption for the following:

1) Donation, gift,

2) Other contributions directly related to an organisation entitled to exemption as referred to in Clause (d) of Section 2 without having consideration or without hoping for such contribution or

¹3) ……………………………………

h) Amount received for pension by a Nepalese citizen having retired from the military or police service of a foreign country from the governmental fund of that country.

²i) Any income of the Government of Nepal, Provincial Government or Local Level,

²j) Amounts earned by Nepal Rastra Bank in pursuance of its objective,

³k) Amounts earned by water supply and sanitation consumer organisations registered as per the Water Resources Act 2049 in pursuance of its objective,

⁴l) The amount earned by the Collective Investment Fund (Mutual Fund) approved by the Nepal Securities Board in accordance with its purpose,

⁴m) The amount earned by a non-profit organisation established on the basis of a memorandum of understanding with the Government of Nepal and operating with the purpose of not profiting or reporting.

^{1 Amended by the Financial Act, 2075.}

^{2 Inserted by the Financial Act, 2075.}

^{3 Inserted by the Financial Act, 2078.}

^{4 Amended by the Financial Act, 2080.}