Tax on Insurance Agents’ Income Increased

Kathmandu — The government has increased the tax imposed on the income of insurance agents.

Through the Finance Bill tabled in Parliament alongside the budget for the upcoming fiscal year, the tax rate on insurance agents’ income has been raised from 15 percent to 20 percent.

According to the Finance Bill presented in Parliament, a 20 percent withholding tax will now be applied to service fees or commissions paid to insurance agents who are resident natural persons.

The amendment has been introduced by revising the provision under Sub-section (10) of Section 88 of the Income Tax Act, establishing a separate tax rate specifically for insurance agents.

Under the new provision, service fees or commissions paid to insurance agents who are resident natural persons will be subject to tax at a rate of 20 percent.