Freelancing from Nepal as a Beginner: PAN Registration, Foreign Payments, and Your First Client

Freelancing in Nepal is 100% legal provided you operate through formal banking channels: 1. **Personal PAN (Permanent Account Number):** By law, any individual earning taxable income in Nepal must possess a PAN. You can apply for free via the **Nagarik App** or the Inland Revenue Department (IRD) portal. 2. **The 5% Final Withholding Tax (TDS):** Under the current Income Tax Act and Nepal Rastra Bank monetary circulars, foreign currency income earned by individuals through IT services, programming, and software export received directly into a commercial bank account is taxed at **5% TDS as a final tax**. The commercial bank automatically withholds 5% upon currency conversion and deposits it to the government.

Never use informal crypto or Hundi networks. Use these three verified banking channels: - **Direct Bank SWIFT Wire Transfer:** Provide your client with your Bank Name, Account Name, Account Number, and the bank's **SWIFT Code** (e.g. `NARBNPKK` for Nabil Bank). Funds convert directly to NPR at official daily exchange rates. - **Payoneer to Nepali Bank:** Ideal for Upwork and Fiverr withdrawals. Payoneer allows you to withdraw USD directly into your Nepali bank account in NPR within 24 to 48 hours. - **Wise / Remitly Direct to Bank:** Clients can send payments via Wise or Remitly directly into your Nepali bank account in minutes.