In order to facilitate the payment against purchase of goods and services through online, Nepal Rastra Bank, vide its circular dated 21 March 2021, has authorized commercial banks and national level development banks to issue foreign currency prepaid cards of USD 500 or equivalent foreign currency.

Inland Revenue Department (IRD) has recently issued Permanent Establishment (PE) Directive 2077 (2021 AD). An excerpt from such Directive related to Agency Permanent Establishment is discussed below.In case the business of a non-resident entity in Nepal is operated through an agent, such a structure is an Agency Permanent Establishment. The duration of a business is not counted in case the business is operated through agency permanent establishment of a non-resident entity. The concept of an agency for a permanent establishment includes only a dependent agent, not an independent agent.

Digital payments remain at the forefront of tech progress in the Nepalese Industry. But with the advancement of payment tools, a variety of payment platforms, and variety of payment service providers, the security of digital payments remains a top priority for consumers. The trust of consumer on the banks and payment service providers (PSPs) will remain only if the system are secured enough. No matter how secured are the system used by the banks and PSPs, if the consumer are not aware with the basic information security norms, there is always a chances of security incident and mishap.

A corporate may raise capital in the primary market by way of an initial public offer (IPO), rights issue or private placement. An IPO is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company. Book Building is basically a process used in IPO for efficient price discovery. It is a systematic process of generating, capturing, and recording investor demand for shares.

To facilitate the implementation of Foreign Investment and Technology Transfer Act 2075 (2019 AD), Nepal Government has recently issued FITTA Regulations 2077 (2021 AD). Some major highlights of the new Regulations are given hereunder.

Inland Revenue Department (IRD) has recently issued Permanent Establishment (PE) Directive 2077 (2021 AD). An excerpt from such Directive related to Fixed Place of Business Permanent Establishment is discussed below.

Nepal Rastra Bank (NRB) has issued Foreign Direct Investment and Loan Management By-law, 2077 (2021 AD) as a Consultation Document to the general public vide notice dated 9 February 2021. The draft document includes, among others, the provisions relating to approval of Foreign Loan and endorsement of such loan at NRB. The following is the summary of the consultation document relating to Foreign Loan.

The basis of taxation in any country depends upon the “Residence Rule” and “Source of Income Rule”. In both of the rules determination of “Permanent Establishment” (PE) plays a vital role.

Nepal Rastra Bank (NRB) has recently revised one of its earlier circular to ease the process of taking loan in foreign currency by the Nepalese company with foreign investment from their foreign investors.

In order to facilitate the arrangement of the provision mentioned in Monetary Policy of the Fiscal Year 2077.78 (2020.21), the proposed arrangement has been recently issued by NRB (Nepal Rastra Bank) in January 2021 for public consultation with the idea of implementing the system of providing foreign currency exchange facility for import of foreign services through online.

Cyber-attack is an attempt to gain illegal access to a computer or computer system for the purpose of causing damage or harm. It compromises confidentiality, integrity and/ or availability of the data, which may have greater financial and reputational impact to the organization.

Government of Nepal (GoN) has decided to allow foreign direct investment (FDI) in the primary agriculture production with certain conditions by publishing a notice on Nepal Gazette dated 04 January 2021 (20 Poush2077) exercising the power conferred by Section 50 of Foreign Investment and Technology Transfer Act (FITTA), 2075 (2019 AD). As per the notification, foreign direct investment in Nepal is allowed in the following sectors –