Free calculator
Corporate tax calculator
A straightforward estimate of what your business owes in corporate income tax for a year, including how prior-year losses can reduce the bill where the rules allow carryforward.
Estimate corporate tax on annual profit
= Rs. 1.2M
Prior year losses allowed against this profit
- Loss applied
- Rs. 0.00
- Taxable base
- Rs. 1,200,000.00
- Tax at 25%
- Rs. 300,000.00
- Profit after tax
- Rs. 900,000.00
- Effective rate
- 25.0%
How the formula works
Tax = taxable base times the corporate rate. The taxable base is profit minus any loss carried forward from earlier years. When carryforward exceeds profit, tax is zero and the leftover loss continues to future years. The effective rate is tax divided by pre-tax profit.
Worked example
Profit is Rs. 1,200,000 at a 25 percent rate with Rs. 200,000 of prior losses. Carryforward reduces the taxable base to Rs. 1,000,000, so tax is Rs. 250,000 and the effective rate drops to about 20.8 percent instead of 25.
Common mistakes
- Applying the corporate rate to revenue instead of profit.
- Assuming losses carry forward without checking local time limits and rules.
- Forgetting that some expenses are not deductible, which raises the real base.
- Ignoring advance or withholding payments already made during the year.
Frequently asked questions
What is Nepal's corporate rate?
The standard rate is 25 percent, with different rates for special industries and banks. This calculator lets you enter any rate; the full app ships a Nepal preset.
Does this include VAT?
No. VAT is collected on behalf of the government and is separate from corporate income tax; see the VAT calculator.
Is this a substitute for filing?
No. It is an estimate for planning. Deductions, depreciation and local rules change the final assessment.
Related tools
Results are arithmetic on the numbers you enter, not predictions. Validate important figures with an accountant before making financial commitments.