Kathmandu. The tax rate on the commission received by insurance agents has increased from July 1.
In the current fiscal year 2083, the government has increased the service charge and commission received by insurance agents through the Finance Act. The tax rate has been increased to be effective from 84. Now, agents will have to pay 20 percent tax of the service charge and commission they receive. Currently, agents are paying 15 percent tax. With this, the tax burden on agents has increased by 5 percent.
The tax rate for insurance agents has been fixed by amending the provision under Section 88 (1) of the Income Tax Act. As per the new provision, 20 percent tax will be levied on the service charge or commission paid to an insurance agent where the resident is a natural person.
