September 14, 2022 | Investopaper
Foreign companies that have invested in Nepal have taken more than Rs 26.1 billion in dividends in the fiscal year 2020/21. In the previous FY 2019/20, such dividends stood at Rs. 12.90 billion. Likewise, in the fiscal year 2018/19, foreign companies repatriated Rs. 27.78 billion in dividend.
The highest dividend repatriation approval was for information and communication sector followed by the manufacturing sector. Companies in information and communication repatriated Rs. 13.98 billion worth of dividends while the manufacturing companies took Rs. 6.74 billion in dividends.
Ncell, Surya Nepal, Gorkha Brewery, and Unilever are among the companies that have taken most of the dividends.
Foreign companies have to pay 15 percent tax when taking profits abroad. The company should submit a copy of the decision of the board of directors to distribute dividend, audit report, tax clearance, receipt of payment of capital gains tax to the tax office, receipt of tax paid while taking dividend to the department.
According to a study by NRB, foreign investment has reached Rs 227.9 billion [As of Mid-July 2021]. The Foreign Investment and Technology Transfer Act 2075 (FITTA) has a clear provision on investment, operation and return to attract foreign investment.