How freelancers in Nepal get paid — and what gets deducted
The number on your gig is not the number that lands in your bank. Here is exactly what comes off, who takes it, and when the money moves.
By The Nepal Can Work team · Updated
If you freelance in Nepal, the gap between the price you quote and the money that reaches your bank account is the thing nobody explains properly. This post explains it, using the actual numbers this platform runs on.
The short answer
On Nepal Can Work, the price on your gig is what you are owed. The platform's service fee is charged to the client on top of your price, not taken out of it — the freelancer commission is set to 0%. What comes off your side is tax withholding, and only tax withholding.
| Stage | What happens to the money |
|---|---|
| Client pays | Your price + the client's service fee (currently 20%) is charged and held in escrow |
| You deliver, client approves | A short hold — 6 hours by default — before the payout is queued |
| Payout is queued | TDS is withheld and recorded against your PAN |
| Payout is sent | The remainder goes to your chosen payout method |
What TDS is, and why it comes off before you see it
TDS — tax deducted at source — is income tax collected at the moment you are paid rather than at the end of the year. When a company in Nepal pays an individual for services, it is required to withhold a percentage and deposit it with the Inland Revenue Department on that person's behalf.
That obligation sits with the payer, not the recipient. Nepal Can Work is the payer here, so we withhold. This is not a fee and it is not the platform keeping your money — it is your tax, paid early, recorded under your PAN, and creditable against what you owe for the year.
The rate depends on your registration
A freelancer who is VAT-registered and has had that registration verified is withheld at 1.5%. A freelancer with a PAN but no VAT registration is withheld at 15%. A non-resident payee is withheld at 5%. The difference between 1.5% and 15% is large, and it is the single biggest reason to get registered properly.
The withholding is calculated on what is actually being handed to you, not on the client's gross payment including the service fee — the platform's fee is our revenue, not your income, so it is not part of the sum being paid for your service.
Why registering is worth the paperwork
Consider a freelancer earning Rs. 100,000 in a year through the platform:
| Status | Withheld at | Withheld over the year |
|---|---|---|
| PAN only | 15% | Rs. 15,000 |
| VAT-registered and verified | 1.5% | Rs. 1,500 |
That is a Rs. 13,500 difference in cash flow. It is not a difference in tax owed — withholding is a prepayment, and over-withholding is settled when you file — but the money sits with the IRD instead of with you for up to a year, and getting it back requires filing a return you may not otherwise have filed.
Registration is also what lets you invoice businesses properly, which is most of what separates freelancers who take Rs. 5,000 jobs from those who take Rs. 200,000 contracts.
When the money actually moves
The realistic timeline, end to end:
- Client pays. The money is in escrow. It is not yours yet, but it exists and it is committed — this is the point where it is safe to start work.
- You deliver and the client approves. Approval is what triggers release.
- A short hold, 6 hours by default. This is the window for a client who spots a problem immediately after approving.
- The payout is queued. TDS is withheld here and the ledger entry is written.
- The payout is sent to your verified payout number, or credited to your platform wallet to withdraw later.
The part outside anyone's control is the last step. Once a payout leaves the platform it is in the hands of the payment rails, and Nepali settlement is not instant at every hour of every day. If the money has left us and has not arrived, that is a gateway timing question, not a platform one — but the ledger entry proving it left is always visible in your wallet.
What is genuinely deducted, and what is not
- Deducted from you: TDS at your applicable rate. That is it, while the freelancer commission stays at 0%.
- Charged to the client, not you: the platform service fee. It is added on top at checkout, so your quoted price is unaffected.
- Not deducted: anything for listing a gig, receiving messages, or being on the platform. There are no listing fees.
Getting paid faster, practically
- Verify your payout number early, not when your first order completes. Changing it starts a cooldown before it can be used, and discovering that on payout day is avoidable.
- Ask for approval explicitly when you deliver. Many clients simply forget to click approve; the escrow does not release itself the moment you upload a file.
- Deliver inside the order thread. A file sent over Viber is not a delivery the platform can see, so it cannot start any clock.
- Keep your tax profile current. An unverified registration means you are withheld at the higher rate regardless of your actual status.
This is not tax advice
It describes what this platform withholds and why. Rates are set by the annual Finance Act and change; your own position depends on your total income, your registration, and whether you have other sources. For anything consequential, talk to a Nepali accountant — the fee is small next to getting it wrong.