Kathmandu, Nepal – Major international tech companies such as Apple, Google, Microsoft, Meta, TikTok, and Netflix have started paying Nepal’s newly implemented Digital Service Tax (DST) for providing electronic services to consumers in the country. This tax mandates a 2% levy on the transaction value of electronic services provided to Nepali consumers.

According to Dhurba Prasad Pandey, Chief Tax Officer and Information Officer at Nepal’s Large Taxpayers’ Office, 20 foreign companies are now registered and compliant with the DST requirement, established under the Economic Act for Fiscal Year 2022/23. This DST provision, which went into effect two years ago, was the country’s first attempt to tax foreign digital services, though not all companies operating in Nepal’s digital economy are yet covered by the framework.

Notable companies registered under the DST framework include Google Asia Pacific Private Limited, Google Ireland Limited, LinkedIn Singapore Private Limited, and Amazon’s divisions. Also registered are Ipsco International, Microsoft Regional Sales, Adobe Systems Software Ireland, Netflix, Zoho Corporation, Prometric Japan, the Association of Chartered Certified Accountants (ACCA), Pearson Education, and Apple Distribution International.

TikTok, which faced a temporary ban in Nepal earlier this year, will also now pay DST. Its return to the platform is contingent on compliance with certain regulatory conditions. Google Asia Pacific Private Limited, the parent company of Google, is among the most prominent registrants, overseeing popular services like Google Search and YouTube. Social media giants Facebook (operating through Meta, which also owns Instagram and WhatsApp), LinkedIn, and TikTok are likewise aligned with Nepal’s new tax regulations.

The registration of these companies marks a significant step toward formalizing Nepal’s digital economy and ensuring revenue from global tech giants conducting business in the country.