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Nepal vs Italy
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇳🇵 Nepal
vs
🇮🇹 Italy
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
1–36%
36% top; remittance economy significant
No change
23–43%
3-bracket IRPEF reform targeting completion
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
13%
13% stable
No change
4–22%
Digital economy VAT rules tightening
No change

Corporate Tax Rate

Corporate Tax Rate
25%
25%; Pillar Two for qualifying MNCs
No change
24%
Investment incentive rate (20%) extended
No change

Capital Gains Tax

Capital Gains Tax
5–10%
5%/10% maintained
No change
26%
Flat 26% maintained
No change

Social Security & Payroll

Social Security / Payroll
~31%
SSF and EPF; coverage expanding
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

🇳🇵 NepalProvince & Local Government Taxes

Nepal's 7 provinces and 753 local governments (metropolitan, sub-metropolitan, municipal, and rural municipal) have significant constitutional taxing powers under the 2015 federal constitution. Local governments levy entertainment tax, advertisement tax, house/land registration tax, and tourism fees. Provinces can levy vehicle tax and some business taxes. The Inland Revenue Department (IRD) administers federal taxes. Nepal's tax system has evolved significantly under federalism since 2017.

🇮🇹 ItalyRegional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Nepal vs Italy: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (1–36% vs 23–43%). 🇳🇵 Nepal is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (13% vs 4–22%).

🏢 Corporate Tax: 🇮🇹 Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇳🇵 Nepal taxes investment gains at a lower rate (10% vs 26%), benefiting investors.

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