What is the provision to settle legal disputes between a native and a foreign investor?

As per clause 65 of PPPIA 2019, the parties shall first try to resolve the dispute through mutual discussion or negotiation. If unable to do so, the dispute can then be resolved through negotiations by the IBN office. In case of failure to resolve the dispute through negotiation through the IBN office, parties can refer to arbitration proceedings as mentioned in the agreement. In the absence of arbitration proceedings being mentioned in the agreement, the dispute shall be settled under the arbitration laws of Nepal.  Unless the disputing parties agree…

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What are the corporate income tax rates in Nepal?

Corporate tax rates in Nepal depends upon the nature of the business entity and generally ranges from 25-30%. The normal rate for entities is 25%; rates for life insurance companies is also 25%, but rates for banks and financial institutions, general insurance, and enterprises involved in the petroleum business is 30%. Special industries, enterprises operating roads, bridges, railways hydropower stations, transmission lines, etc. on a BOOT basis are given a special rate of 20%.

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What are the visa provisions for foreign investor to reside in Nepal?

As per clause 52 of the Public-Private Partnership and Investment Act 2019, a non-tourist visa shall be provided for 6 months for foreign citizens to study, research and survey any approved foreign investment. Similarly, the foreign investor or one authorized representative and their family members shall be provided business visas to stay as long as investments continue in Nepal. Foreign employees of the project acquiring labour permits shall also be allowed to stay during their period of investment in Nepal.

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