A compulsory financial charge to the government, i.e. tax has to be paid on the income from the digital services in the present context in Nepal. In the past, there was no tax implied by the government on the income from digital platforms but due to the sudden rise of digitalization and digital platforms becoming the primary income source of many people, tax has been levied.
The services that are delivered through digital platforms which include various websites, apps or software are called digital services. Digital services can be offered to customers, clients, or citizens by private persons, public companies, or governmental entities. These digital services are often the services provided by non-resident persons to the consumers within the country. The use of digital technologies to generate economic activity is known as the “digital economy”, which includes digital services.
