News/Monthly digest · July 2026

July 2026 Client News Digest

July brought several notable court developments affecting taxation, telecommunications, banking governance and public-sector remuneration, alongside a professional development update from ICAN.

## Tax and revenue matters

The Supreme Court reviewed a dispute on tax withholding from a retirement benefit paid through the Citizen Investment Fund. The central issue was whether the payment should have been subject to withholding at 5% or 15% under the Income Tax Act, 2058. The case is relevant for employers, retirement funds and beneficiaries assessing the correct tax treatment of retirement-related payments.

In the telecommunications sector, the Supreme Court addressed the WorldLink Communications dispute concerning royalty and Rural Telecommunications Development Fund (RTDF) dues. The case examined whether income from support, maintenance, monitoring, installation and relocation charges was required to be included in telecom service revenue for royalty and RTDF contribution purposes. The record states that these service-related charges were treated as part of telecom service revenue for those purposes.

## Banking and regulatory governance

The Supreme Court dismissed a writ petition seeking removal orders against bank officials following penalties imposed by Nepal Rastra Bank. The Court held that not every NRB penalty automatically disqualifies a bank director or chief executive from holding office. This distinction is important for regulated institutions when assessing the governance consequences of supervisory action.

## Public sector employment and pay

A Supreme Court joint bench issued an order in a writ petition concerning alleged disparities in starting salary scales for gazetted civil servants. The petitioners are seeking pay-scale adjustment in line with the official hierarchy and earlier directions of a parliamentary committee. The matter may be of interest to public-sector employers and employees monitoring civil service pay alignment.

## Professional development

The Institute of Chartered Accountants of Nepal announced an online Continuing Professional Education programme to be held from 23–28 Asadh 2083, corresponding to 7–12 July 2026. Participants in the virtual training will receive 30 CPE credit hours.

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Sources & references

Every item compiled in this digest and where it was collected from — kept so each source stays traceable over the years.

  1. test 3TaxRegulation & ComplianceAudit & Assurance
    Supreme Court addresses WorldLink royalty and RTDF dues disputeDownload original PDF
  2. test4Financial Reporting & Accounting StandardsAudit & AssuranceTaxInsuranceRegulation & Compliance
    ICAN announces online CPE training for 7–12 July 2026Download original PDF
  3. test 3PayrollRegulation & Compliance
    Supreme Court considers writ on civil service pay-scale alignmentDownload original PDF
  4. test 3TaxRegulation & Compliance
    Supreme Court reviews tax withholding on retirement fund paymentDownload original PDF