Chapter 12 · Part 12 — The 2083 Amnesty
The 2083 Amnesty
Twenty-three reliefs and three deadlines — the most valuable Part for anyone with old arrears.
12 of 14 · 20 min
The largest tax amnesty in recent Nepali practice. Twenty-three separate reliefs, most closing at Poush end 2083 (≈ mid-January 2027). If you have old arrears, unfiled returns, a dormant PAN or a pending case, this Part is the most valuable in the course.
The pattern
Almost every relief follows the same shape:
╔═══════════════════════════════════════════════════════════════════╗ ║ PAY THE TAX + AN ADDITIONAL 1% ║ ║ → INTEREST, PENALTIES, FEES and LATE FEES ARE WAIVED ║ ║ → DEADLINE: usually POUSH END 2083 ║ ╚═══════════════════════════════════════════════════════════════════╝
Why 1%? It is a token — enough that the amnesty is not a pure gift, small enough that settling is obviously cheaper than carrying the arrear. The state converts a disputed, ageing, possibly uncollectible receivable into cash this fiscal year (see the Rs 657 billion deficit, Part 1).
The deadline map
┌──────────────────────────────────────────────────────────────────────┐ │ ASHOJ END 2083 ≈ mid-October 2026 │ │ • Excise licence renewal (n) │ │ • Companies Act 2063 filings (s) │ ├──────────────────────────────────────────────────────────────────────┤ │ MANGSIR END 2083 ≈ mid-December 2026 │ │ • Shipping container fee waiver (i) │ │ • UN / international organisation / diplomatic mission │ │ employees (r) │ │ • Annual Finance Acts fees, charges and taxes (t) │ │ • Bonded warehouse / passbook export deadline (v) │ ├──────────────────────────────────────────────────────────────────────┤ │ POUSH END 2083 ≈ mid-January 2027 ← THE MAIN DEADLINE │ │ • Almost everything else │ └──────────────────────────────────────────────────────────────────────┘ ! THREE DIFFERENT DEADLINES. Do not assume Poush end applies to your relief — check which one you are using.
Reliefs for businesses damaged in the Gen-Z movement
┌──────────────────────────────────────────────────────────────────────┐ │ (a) INVENTORY LOSS │ │ Industries, businesses or commercial establishments affected │ │ may REVALUE their UNINSURED business inventory on an │ │ assessment supported by adequate evidence. │ │ │ │ Providing details of the loss to the concerned Inland Revenue │ │ Office within the period prescribed under Rule 39K(1)(a) of │ │ the VAT Regulations 2053 allows: │ │ • the loss to be DEDUCTIBLE as an expense under Section 15 │ │ of the Income Tax Act 2058 for FY 2082/83, AND │ │ • the VAT paid on it to be ADJUSTED under Section 17 of the │ │ VAT Act 2052 │ ├──────────────────────────────────────────────────────────────────────┤ │ (b) RESTORATION IMPORTS │ │ 50% EXEMPTION on customs and excise duties for importing │ │ damaged items — buildings, furniture, machinery, equipment — │ │ for restoration and operation, based on verified INSURANCE │ │ SURVEYOR REPORTS. │ │ │ │ A HOTEL that previously used the customs exemption under │ │ Clause (c) of Sub-rule (3) of Rule 6 of Schedule 4 of the │ │ Customs Tariff Act 2081, and whose assets were damaged, may │ │ use the same exemption AGAIN to restore and recommission │ │ those assets — limited to the damage verified by the │ │ surveyor's report, and without duplication of benefits. │ │ │ │ ROYALTY AND RENEWAL FEES waived for the period a CASINO │ │ business could not operate due to the damage. │ └──────────────────────────────────────────────────────────────────────┘
Income tax reliefs
┌──────────────────────────────────────────────────────────────────────┐ │ (l) WAIVER OF INTEREST AND FEES — three taxpayer situations │ ├──────────────────────────────────────────────────────────────────────┤ │ ① TAXPAYERS WITHOUT A PAN │ │ A person who earned taxable income but never obtained a PAN │ │ and did not file, may: │ │ • obtain a PAN │ │ • file returns for FY 2079/80 to FY 2082/83 │ │ • pay the applicable tax by POUSH END 2083 │ │ → all accrued INTEREST and FILING FEES are waived │ │ → and NO return, tax, interest or fee is payable for any year │ │ BEFORE FY 2079/80 │ │ │ │ ! THIS IS THE MOST GENEROUS PROVISION IN THE ENTIRE AMNESTY. │ │ Everything before FY 2079/80 simply disappears. │ ├──────────────────────────────────────────────────────────────────────┤ │ ② PAN HOLDERS WITH NO BUSINESS ACTIVITY OR INCOME │ │ A taxpayer with a PAN but no income, transactions or filed │ │ returns up to FY 2081/82 may either: │ │ • CANCEL the registration, or │ │ • REACTIVATE the business by filing the FY 2082/83 return, │ │ paying that year's tax, and applying to the tax office │ │ by POUSH END 2083. │ │ → on compliance, no returns are needed for prior fiscal years │ │ │ │ ! IF THE DEADLINE IS MISSED, THE PAN IS AUTOMATICALLY │ │ DEACTIVATED. Any later reactivation or resumption requires │ │ filing ALL outstanding returns and paying ALL tax, interest │ │ and fees. │ │ │ │ ⇒ Miss this and the cost of coming back rises sharply. │ ├──────────────────────────────────────────────────────────────────────┤ │ ③ EXISTING PAN HOLDERS WITH OUTSTANDING RETURNS AND TAXES │ │ File all outstanding returns and pay the outstanding tax │ │ plus 1% by POUSH END 2083 │ │ → interest and fees waived │ └──────────────────────────────────────────────────────────────────────┘
And for individuals working with international bodies:
(r) A RESIDENT INDIVIDUAL employed by a UN office in Nepal, a UN
agency, another international organisation, or a foreign
diplomatic mission — whose remuneration or service fees are NOT
tax-exempt under the Vienna Convention — may obtain a waiver of
interest and fees by:
• obtaining a PAN
• filing income tax returns for FY 2079/80 to FY 2082/83
• paying the tax due plus 1%
by MANGSIR END 2083 (≈ mid-December 2026)
→ and NO returns, tax, fees, interest or other charges are
payable on income earned BEFORE FY 2079/80.VAT reliefs
┌──────────────────────────────────────────────────────────────────────┐ │ (m) WAIVER OF FINES AND INTEREST ON VAT │ │ │ │ • A VAT-registered person who made taxable transactions but │ │ FAILED TO COLLECT AND DEPOSIT VAT may obtain a FULL waiver of │ │ interest, additional fees and penalties by filing all │ │ outstanding VAT returns up to CHAITRA 2082 (≈ mid-April 2026) │ │ and paying the VAT due PLUS 1% by POUSH END 2083. │ │ │ │ • A VAT-registered person who COLLECTED VAT but FAILED TO FILE │ │ returns may obtain the same full waiver on the same terms. │ ├──────────────────────────────────────────────────────────────────────┤ │ (k) INSURANCE AGENTS │ │ An insurance agent who failed to collect VAT for FY 2082/83 or │ │ any earlier year: all unpaid VAT-related interest, additional │ │ fees and penalties are waived, and no VAT return is needed for │ │ that period. │ │ │ │ ⇒ Read with Part 8: insurance agent services have now been │ │ ADDED to Schedule 1 (exempt). The amnesty closes the │ │ historical exposure; the exemption removes it going forward. │ ├──────────────────────────────────────────────────────────────────────┤ │ (f) LUXURY DUTY AND VAT ON GOLD AND SILVER │ │ • Any uncollected LUXURY DUTY on gold and gold ornaments, │ │ diamonds, gems, precious stones and similar items due before │ │ 2 Bhadra 2082 is DEEMED EXEMPT. No return or statement needed. │ │ • Any VAT not collected in accordance with law on the manufacture │ │ or repair of GOLD AND SILVER JEWELLERY, UTENSILS OR IDOLS up to │ │ FY 2082/83 — together with related interest, additional tax, │ │ fee or penalty — is WAIVED. No return required. │ └──────────────────────────────────────────────────────────────────────┘
Excise reliefs
┌──────────────────────────────────────────────────────────────────────┐ │ (n) EXCISE LATE FEES AND PENALTIES │ │ │ │ • A person — whether licensed under the Excise Act 2058 or not — │ │ who traded in excisable goods WITHOUT COLLECTING EXCISE DUTY │ │ may obtain a waiver of late fees and penalties by POUSH END │ │ 2083, if they submit the statement required under Section 10A │ │ and pay the excise duty due plus 1%. │ │ │ │ • A licensee who FAILED TO RENEW ON TIME but wants to continue │ │ may obtain a waiver of ALL PRIOR-YEAR RENEWAL FEES AND │ │ PENALTIES by renewing and paying the renewal fee for FY 2082/83 │ │ by ASHOJ END 2083 (≈ mid-October 2026). │ │ │ │ ! ANY LICENCE NOT RENEWED BY THEN IS AUTOMATICALLY CANCELLED. │ │ This is the earliest hard deadline in the whole amnesty. │ └──────────────────────────────────────────────────────────────────────┘
Assessed arrears and pending cases
┌──────────────────────────────────────────────────────────────────────┐ │ (o) OUTSTANDING TAX AND EXCISE DUTY │ │ A person who FILED a VAT, income tax or excise return but did │ │ not pay the VAT, tax or excise due up to 15 Jestha 2083 may │ │ obtain a waiver of all related interest, fees, additional │ │ charges, penalties and late fees by POUSH END 2083 if they pay: │ │ • the outstanding amount stated in the return, AND │ │ • an additional 1% of it │ ├──────────────────────────────────────────────────────────────────────┤ │ (p) ASSESSED TAX ARREARS │ │ Where VAT, income tax or excise becomes payable under an │ │ ASSESSMENT or REVISED ASSESSMENT by the IRD or its offices, │ │ the taxpayer may obtain a waiver of all related fees, │ │ additional charges, penalties, remaining interest and late │ │ fees by POUSH END 2083 if they pay: │ │ • the assessed VAT, tax or excise, AND │ │ • an additional 1% │ │ │ │ DOES NOT APPLY to persons engaged in TELECOMMUNICATIONS. │ ├──────────────────────────────────────────────────────────────────────┤ │ (q) WITHDRAWAL OF PENDING CASES │ │ If a person has a pending ADMINISTRATIVE REVIEW or COURT CASE │ │ against an assessment, amended assessment or excise assessment │ │ under the VAT Act 2052, Income Tax Act 2058 or Excise Duty Act │ │ 2058, up to 15 Jestha 2083 — │ │ │ │ ALL related fees, additional charges, penalties, interest and │ │ late fees are WAIVED if the person WITHDRAWS the proceeding │ │ and pays the assessed tax or excise plus 1% by POUSH END 2083. │ │ │ │ • If the IRD filed an appeal before the Supreme Court, obtained │ │ judicial review, or has a pending petition, the Government of │ │ Nepal may WITHDRAW that proceeding if the taxpayer pays the │ │ disputed tax plus 1% and applies by Poush end 2083. │ │ • If permission to appeal or seek judicial review has not yet │ │ been granted and the tax office has not completed │ │ reassessment, the taxpayer may still obtain the waiver by │ │ paying the disputed tax plus 1% and applying by Poush end. │ │ │ │ DOES NOT APPLY to persons engaged in TELECOMMUNICATIONS. │ ├──────────────────────────────────────────────────────────────────────┤ │ (u) WITHDRAWAL OF LAWSUITS — REVENUE LEAKAGE ACT 2052 │ │ For income tax and VAT cases filed under the Revenue Leakage │ │ (Investigation and Control) Act 2052 and still pending before │ │ the competent court, the Government may waive fines and │ │ withdraw the case if the person deposits the assessed principal │ │ amount (Bigo) plus 1% and applies by POUSH END 2083. │ └──────────────────────────────────────────────────────────────────────┘
The decision every taxpayer with a live dispute faces:
┌──────────────────────────────────────────────────────────────────────┐ │ YOU HAVE A PENDING CASE AGAINST AN ASSESSMENT │ │ │ │ │ ┌─────────────────┴─────────────────┐ │ │ ▼ ▼ │ │ FIGHT ON WITHDRAW AND SETTLE │ │ │ │ • You may win entirely • Pay assessed tax + 1% │ │ • You may lose and then owe • ALL interest, penalties, │ │ tax + full interest + fees and late fees WAIVED │ │ penalties + fees • Certainty NOW │ │ • Years of cost and • You give up the chance of │ │ uncertainty winning outright │ │ │ │ ⇒ The calculation is: (probability of winning × amount at stake) │ │ against (interest + penalties + fees + legal cost + years of │ │ uncertainty). [R] This is exactly the decision to take professional │ │ advice on — the course cannot make it for you. │ └──────────────────────────────────────────────────────────────────────┘
Sector and situation-specific reliefs
| Ref | Relief | Deadline |
|---|---|---|
| **(c)** | **Foreign aid projects.** Where a foreign aid agreement between Nepal's government and a donor agency, or a Council-of-Ministers-approved implementation letter, grants income tax exemption to a non-resident on the project or to a construction/service provider through a registered permanent establishment, income earned up to end FY 2081/82 is exempt, and tax under Section 2(6) of Schedule 1 of the Income Tax Act 2058 is waived | — |
| **(d)** | **NEA share investment.** Where a financing agreement between the Government of Nepal and the European Investment Bank or the Asian Infrastructure Investment Bank gives no tax exemption, or requires the borrower to bear taxes and duties, NEA hydropower generation, transmission and distribution projects pay only **1% customs duty** on goods in the approved master list; all other taxes, fees, charges and duties are exempt — preserving the Government's share investment in NEA equal to the exempted amount. A Gazetted Special Class Officer of the concerned ministry approves the master list | — |
| **(e)** | **Repealed-Act taxes.** Outstanding sales tax, hotel tax, entertainment tax and contract tax payable under the repealed Excise Act 2015 and later governed by the Excise and VAT Act 2052 is waived. Where tax arrears were assessed under the **Income Tax Act 2031** and the liable person neither obtained a PAN nor carried on any income-generating activity, the concerned office may **write off** those arrears | — |
| **(g)** | **Post-clearance audit.** Where customs duty is assessed under a post-clearance audit or verification under the Customs Act 2064 and the assessed duty up to **end Baisakh 2083** (≈ mid-May 2026) remains unpaid, the importer may secure a waiver of the penalty and all accrued interest by withdrawing the case pending before the Revenue Tribunal or any court and paying the full assessed customs duty, excise duty and VAT | **Poush end 2083** |
| **(h)** | **Fuel.** Customs duty on petrol (2710.12.10), kerosene (2710.19.10) and high-speed diesel (2710.19.30) reduced by **50%**; a **10% green tax** applies to imported petrol and diesel notwithstanding anything elsewhere in the Act. The Government may modify or withdraw either concession at any time by notice in the Nepal Gazette | — |
| **(i)** | **Shipping containers.** A domestic or foreign shipping company may retrieve and remove containers that have remained at customs premises for a prolonged period without paying storage charges, demurrage or other fees — even if confiscated under customs law | **Mangsir end 2083** |
| **(j)** | **Non-profit organisations.** An NPO registered under the Association Registration Act 2034 or any other law, whose governing documents require remaining assets on dissolution to transfer to the Government of Nepal, may obtain a **full waiver of tax, interest, penalties and fees** on taxable income from donations, contributions or gifts for FY 2082/83 and earlier years if it files its FY 2082/83 income tax return — whether or not it is otherwise recognised as tax-exempt. If the organisation's only income is donations, contributions and gifts, it does not need to file at all | **Poush end 2083** |
| **(s)** | **Companies Act 2063.** A company that failed to file returns, renew registration or pay required tax, fees, charges, interest or penalties for all periods before FY 2082/83 may obtain a waiver — if it wants to continue operations or cancel registration — by filing the required returns and paying the tax, fees and charges due for FY 2082/83 | **Ashoj end 2083** |
| **(t)** | **Annual Finance Acts.** A person who failed to submit, underpaid, or failed to file a return for any fee, charge or tax under the Annual Financial Acts may obtain a waiver of penalties, interest and fees by filing the returns and paying the outstanding amount plus **1%**. Where the office has already assessed and recorded such a fee, charge or tax as arrears, or the matter is pending before a court or judicial body, the person may obtain a waiver of all applicable penalties, interest and fees by **withdrawing the case** and paying the determined amount plus 1% | **Mangsir end 2083** |
| **(v)** | **Bonded warehouse / passbook.** An industry licensed as a bonded warehouse under bank guarantee, or importing under the passbook facility, may secure release of bank guarantees or refund of cash deposits if it failed to export finished goods made from imported raw materials within the legal deadline — provided it exports those goods, receives the related foreign currency proceeds, and submits an application with the required documentary evidence | **Mangsir end 2083** |
| **(w)** | **Diplomatic vehicle transfer.** A foreign mission or donor agency may transfer a vehicle imported under diplomatic or tariff exemption to anybody or agency of the Government of Nepal, provided the vehicle is **not more than 10 years old** from manufacture. The transferred vehicle is fully exempt from customs duty, VAT, excise duty and road construction fee | **Poush end 2083** |
Casino licensing: a casino operator that has paid all outstanding arrears, royalties, fees and additional fees due up to FY 2082/83 but has not renewed its licence may regularise it once by paying a penalty equal to 15% of the renewal fee for the period of non-renewal, then renew for FY 2083/84 if it complies with the Tourism Act 2035 and the Casino Regulation 2068. If a casino lawsuit is sub judice, the court's decision prevails.
An action checklist
╔═══════════════════════════════════════════════════════════════════════╗ ║ WORK THROUGH THIS BEFORE POUSH END 2083 ║ ╠═══════════════════════════════════════════════════════════════════════╣ ║ ║ ║ - Do I have taxable income and NO PAN? ║ ║ → the most generous relief in the amnesty. Everything before ║ ║ FY 2079/80 disappears. Act on this first. ║ ║ ║ ║ - Do I hold a DORMANT PAN with no filings? ║ ║ → cancel or reactivate by Poush end, or the PAN is ║ ║ automatically deactivated and re-entry becomes costly. ║ ║ ║ ║ - Do I have UNFILED RETURNS or UNPAID ASSESSED TAX? ║ ║ → pay tax + 1%; interest, penalties and fees waived. ║ ║ ║ ║ - Do I have a PENDING CASE against an assessment? ║ ║ → model withdrawal against fighting on. [R] Take advice. ║ ║ (Not available in telecommunications.) ║ ║ ║ ║ - Am I VAT-registered with uncollected or undeposited VAT? ║ ║ → file up to Chaitra 2082, pay + 1% by Poush end. ║ ║ ║ ║ - Do I hold an EXCISE LICENCE needing renewal? ║ ║ → ASHOJ END 2083. Earliest deadline. Non-renewal = automatic ║ ║ cancellation. ║ ║ ║ ║ - Is my COMPANY behind on Companies Act filings? ║ ║ → ASHOJ END 2083. ║ ║ ║ ║ - Was my business DAMAGED in the Gen-Z movement? ║ ║ → inventory revaluation, 50% customs/excise on restoration ║ ║ imports. Requires an INSURANCE SURVEYOR'S REPORT. ║ ║ ║ ║ - Am I an NPO with unfiled returns? ║ ║ → full waiver for FY 2082/83 and earlier if I file. ║ ║ ║ ║ - Do I have containers stuck at customs, or an unfulfilled ║ ║ bonded-warehouse export obligation? ║ ║ → MANGSIR END 2083. ║ ╚═══════════════════════════════════════════════════════════════════════╝
Common mistakes
MYTH "The amnesty deadline is Poush end for everything."
FACT THREE deadlines: Ashoj end, Mangsir end, Poush end.
MYTH "I'll deal with my dormant PAN later."
FACT Miss Poush end and it is automatically deactivated. Coming back
then requires ALL outstanding returns, tax, interest and fees.
MYTH "1% of my tax is the total cost."
FACT You pay the TAX PLUS 1%. The 1% is on top, not instead.
MYTH "Everyone can settle a pending case."
FACT Not telecommunications — excluded from (p) and (q).
MYTH "I can claim Gen-Z damage relief on my own assessment."
FACT It rests on an INSURANCE SURVEYOR'S REPORT.
MYTH "Amnesties come round every year, I'll wait."
FACT [R] There is no guarantee of another. And the reliefs here reach
back to FY 2079/80 in a way that may not be repeated.Part 12 — Revision table
| Relief | Terms | Deadline |
|---|---|---|
| No PAN, unfiled | Obtain PAN, file FY 2079/80–2082/83, pay tax; **nothing payable before FY 2079/80** | Poush end 2083 |
| Dormant PAN | Cancel or reactivate by filing FY 2082/83; else **auto-deactivation** | Poush end 2083 |
| PAN with outstanding returns | File all, pay outstanding + **1%** | Poush end 2083 |
| VAT not collected / not filed | File to Chaitra 2082, pay + **1%** | Poush end 2083 |
| Excise traded without duty | Section 10A statement, pay + **1%** | Poush end 2083 |
| Excise licence renewal | Pay FY 2082/83 renewal fee; **else automatic cancellation** | **Ashoj end 2083** |
| Filed but unpaid (to 15 Jestha 2083) | Pay outstanding + **1%** | Poush end 2083 |
| Assessed arrears | Pay assessed + **1%** · not telecommunications | Poush end 2083 |
| Pending cases | Withdraw, pay assessed + **1%** · not telecommunications | Poush end 2083 |
| Revenue Leakage Act cases | Deposit Bigo + **1%**, apply | Poush end 2083 |
| Insurance agents (VAT) | Unpaid VAT interest, fees, penalties waived; no return needed | — |
| Gold/silver luxury duty and VAT | Deemed exempt / waived; no return needed | — |
| Gen-Z inventory loss | Revalue uninsured stock; deductible s.15 ITA FY 2082/83; VAT adjustable s.17 | Per Rule 39K(1)(a) |
| Gen-Z restoration imports | **50%** customs and excise exemption, per surveyor's report | — |
| Post-clearance audit | Withdraw case, pay full assessed duty | Poush end 2083 |
| NPOs | Full waiver FY 2082/83 and earlier if the return is filed | Poush end 2083 |
| UN / diplomatic mission employees | PAN, file FY 2079/80–2082/83, pay + **1%** | **Mangsir end 2083** |
| Companies Act 2063 | File returns, pay FY 2082/83 dues | **Ashoj end 2083** |
| Annual Finance Acts dues | File and pay + **1%**; or withdraw case and pay + 1% | **Mangsir end 2083** |
| Shipping containers | Retrieve without storage/demurrage charges | **Mangsir end 2083** |
| Bonded warehouse / passbook | Export, receive FX proceeds, apply with evidence | **Mangsir end 2083** |
| Diplomatic vehicle transfer | Vehicle ≤10 years old; fully exempt | Poush end 2083 |
| Casino licence | Regularise once at **15%** of the renewal fee penalty | — |
| Verify | **Every deadline against the enacted Finance Act 2083 and IRD procedure** |
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