On 3 August 2026, the Inland Revenue Department released the withholding tax (TDS) rates to be applied on various payments made during fiscal year 2083/84. The notice specifies the percentages that payers must deduct at source for services, contracts, royalties, and other prescribed transactions.
Key Takeaways
- Rate Schedule: The notice maintains the existing TDS structure, with rates ranging from 5 % on professional fees to 15 % on interest payments, and includes specific reduced rates for certain government‑approved projects.
- Payer Obligation: Entities making payments must withhold the prescribed percentage and remit it to the Inland Revenue Department within the stipulated deadline, accompanied by the appropriate challan.
- Impact on Cash Flow: Accurate application of these rates affects the net cash flow of both payers and payees, necessitating updates to accounting software and contractual terms to avoid under‑ or over‑deduction.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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