Tax legislation including temporary loss carryback rules and extending the Commissioner’s authority—tax relief measures provided in response to the economic impact of the coronavirus (COVID-19) pandemic—was both introduced and passed today, and is now awaiting Royal Assent which is expected next week.

Measures in the tax legislation provide:

• Taxpayers can carry back a 2020 or 2021 tax year loss for one year, to reduce the prior year’s taxable income
• Authority to the Commissioner to relax certain requirements of the tax laws (such as extending a due date, deadline, time period or time frame for tax compliance)

The loss carryback rules will provide some cash to business, and the Commissioner’s authority, if used appropriately, will allow some compliance relief to taxpayers.

(This article is reproduced from KPMG site for general information purpose only. Nepal Tax Online do not vouch for the veracity of information copied from the site )