Nepal’s Revenue Department Orders Ride-Sharing Services to Obtain PAN

Nepal’s Inland Revenue Department has directed ride-sharing services to ensure that all their riders and drivers obtain a Permanent Account Number (PAN) before operating.

The department’s notice stated that since ride-sharing services are subject to tax deductions at source (TDS), drivers are required to obtain a PAN as per the Income Tax Act, 2058 and the Income Tax Rules, 2059.

Compulsory PAN for Ride-Sharing Services

According to the law, individuals who earn taxable income or are subject to TDS must obtain a PAN before earning income or before TDS is deducted.

The department has clarified that all riders and drivers associated with ride-sharing services must obtain a PAN and operate only after obtaining the number.