November 9: The government has started homework to sign an agreement with the UK to end double taxation. According to the Ministry of Finance, the government is preparing to sign the agreement to attract investors by ending the compulsion for them to pay the same tax twice.

Due to lack of an agreement with Britain to end double taxation, businessmen are forced to pay income tax for their annual transactions in both countries. This has reportedly discouraged foreign investment in Nepal.

According to the ministry, the Government of Nepal has already exchanged letters with the UK government for ending double taxation between the two countries.

Some issues are yet to be sorted out and they are close to a final deal, officials privy to the matter informed New Business Age.

Revenue Secretary Ram Sharan Pudasaini said that the two countries will sign the agreement soon.

According to him, there is a high possibility of massive investment from Britain once the agreement is signed. Pudasaini said that Nepal will also sign agreements to end double taxation with other countries that are likely to invest in Nepal.

The Inland Revenue Department said that the government is also preparing to sign similar agreements with Malaysia, Singapore, USA, Japan, Canada, Brazil and Oman.