The Inland Revenue Department (IRD) is currently responsible for the enforcement of Tax Laws and administration of the following taxes: Income Tax, Value Added Tax, Excise Duty, Health Tax, Education Service Fee and duties like Entertainment fee (Film Development Fee).
IRD carries out the following functions:
1. Tax Administration
2. Tax Policy
3. Tax Payer Services
4. Registration, Revenue Collection
5. Tax audit
6. Tax Enforcement and investigation
7. Review & Appeal
8. Tax Refund
9. Advance Ruling
10. Tax Treaty and International Taxation
11. Excises and Liquor Administration
12. Monitoring of non-tax
IRD is centrally located in Kathmandu. There are 49 field offices throughout Nepal including 1 Large Taxpayers Office, 22 Inland Revenue Offices and 26 Taxpayer Service Offices. The previous Department of Taxation was established in 1960. IRD and its district offices are totally running on functional line. Major functions include Taxpayer`s Service, Audit and Collection.