Industry Sector
Technology
Advisory and audit support for technology-driven businesses.
Overview & Core Services
Who We Are & How We Help
We help tech companies manage revenue recognition, improve controls, and meet reporting standards.
Revenue Recognition
Clear reporting for subscription and usage models.
Cyber Risk Review
Checks on controls and security practices.
VALUE
Creation
Methodology
Creating Value For Your Business
We keep reporting clean so teams can scale products with confidence.
Better revenue clarity
Stronger control posture
The URPCA Advantage
Why Choose URP?
01
Tech-aware reviews
Aligned to modern product models.
02
Scalable controls
Support for fast growth.
Insights
Sector Publications
Beyond Compliance: Transforming Audits into Strategic Business Insights
A financial audit shouldn't just be a regulatory checkbox. When executed correctly, an audit acts as a diagnostic tool that uncovers hidden operational inefficiencies...
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Restructuring for Resilience: Why Mid-Market Firms Need Fractional CFOs
Scaling a mid-market enterprise requires financial strategy that goes beyond basic bookkeeping. Discover how Fractional CFOs are providing high-level financial leadership without the full-time...
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The Future of Tax Compliance in Nepal: Navigating the 2026 Shift
As Nepal's regulatory frameworks evolve, businesses must adapt their financial reporting to align with the new digital taxation policies. Here is what you need...
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Frequently Asked Questions
Services exported from Nepal — where the service is consumed outside Nepal and consideration is received in convertible foreign currency through banking channels — are generally treated as zero-rated supplies under the VAT Act 2052. This means VAT is charged at 0% and input VAT credits remain claimable. Strict documentation of payment receipt through banking channels in foreign currency is essential; failures here are the most common reason zero-rating is denied on audit.
Nepal's Income Tax Act 2058 includes transfer pricing provisions requiring transactions between related parties to be at arm's length. The Inland Revenue Department's scrutiny of IT services captives — particularly those billing parent companies abroad on cost-plus arrangements — has intensified. Documentation should include functional and risk analysis, benchmarking study, intercompany agreements, and transfer pricing report aligned to OECD-style principles adapted for Nepal.
SaaS subscription revenue under NFRS 15 is recognised over the subscription period, reflecting the ongoing access service obligation. Setup fees are deferred and recognised over the customer's expected life if they do not represent a distinct performance obligation. Multi-year prepaid subscriptions create significant deferred revenue and require careful disclosure. Revenue recognition policy should be reviewed at company formation and re-examined as product structure evolves.
The Industrial Enterprise Act 2076 and successive budget announcements have introduced incentives for IT and technology exporters — tax holidays for qualifying enterprises, customs concessions on capital equipment, and concessional rates for foreign exchange retention in certain cases. Eligibility criteria are specific and evolve; we monitor and advise on optimal claim structures.
Payments to non-residents for technology services, software licenses, and cloud subscriptions attract Nepali withholding tax (TDS) under the Income Tax Act 2058. Rates depend on the nature of the payment (royalty, services fee, equipment use) and the existence of a double tax avoidance agreement with the recipient's country. Misclassification — particularly treating royalties as services — is a frequent IRD audit issue and creates significant retrospective exposure.