A taxpayer should mandatorily update their KYT (Know Your Taxpayer) details with the Inland Revenue Department (IRD) every year in Nepal. If you fail to do so, it can lead to system restrictions which leads to fines and penalties as you cannot file your VAT or tax returns on time. In this guide, we’ll walk you through what KYT is, why it matters, and how to update it online through the IRD portal.
What Is KYT (Know Your Taxpayer) in Nepal?
KYT stands for Know Your Taxpayer, a compliance process introduced by the IRD of Nepal to keep taxpayer data updated and accurate. It includes detailed personal and business information such as your PAN, business nature, contact details and PAN of the owner. The objective is to enhance transparency and monitor compliance among individuals and entities registered under VAT or PAN.
Why Is Updating KYT Important for Taxpayers?
Updating KYT ensures that the IRD has correct and current information about your:
- Business operations
- Ownership and address
- Income nature and tax liabilities
- Contact details
It helps prevent issues such as tax mismatches, non-filing notices, or blocked tax services like VAT return submissions.
Who Needs to Update KYT in IRD Nepal?
The following taxpayers must update their KYT:
- PAN and VAT registered individuals
- Firms and companies involved in trade, service, manufacturing, import or export
- Educational institutions, NGOs/INGOs, and consultancies
- Financial institutions and cooperatives
Even dormant or inactive firms must submit KYT with updated status.
Prerequisites Before Updating KYT
Before proceeding to update your KYT, ensure you have the following ready:
- Your PAN or VAT number
- IRD username and password
- Updated business and personal contact details
If you forget your password of taxpayer login, you can get help from our recent blog on How to recover username and password of tax.
Steps to Update KYT on IRD Portal
Follow these steps to update your KYT on the IRD Nepal website:
- Visit: https://ird.gov.np
- Login using your PAN/VAT and password.
- Navigate to "KYT Update" or "Know Your Taxpayer" section.
- Fill in all necessary details in the form:
- Business type and activity
- Owner or director details
- Contact number, email, and address
- Review all entries.
- Click Submit to complete the update.
- You will receive OTP number and enter the number to verify the KYT.
Your KYT status will show as “Updated” upon successful verification.
What Happens If You Don’t Update KYT?
If you fail to update KYT:
- You may be barred from filing VAT returns
- Your business may not be able to issue sales invoices
- You could receive a non-compliance notice
- Inactive or invalid PAN/VAT status could be displayed
To avoid these issues, update your KYT on time.
Support Options from IRD for KYT Update
If you face technical or data issues:
- Contact IRD’s Help Desk via the contact listed on ird.gov.np
- Visit the nearest Taxpayer Service Office (TSO)
- You can also email IRD with your PAN and screenshots of the issue
You may also seek help from registered tax professionals or online compliance platforms like Estartup Nepal.
Frequently Asked Questions (FAQ) About KYT Update in Nepal
Is KYT mandatory for all PAN holders?
Yes, even individuals and inactive businesses must update it.
Can I update KYT using my mobile phone?
Yes, but it's recommended to use a desktop or laptop for better visibility and form completion.
How often should KYT be updated?
Currently, it’s required only a year once unless major changes occur (ownership, business type, address).
How do I know my KYT is successfully submitted?
Login to IRD > KYT section > Check status. If it shows “Updated,” it’s successful.
Bottom Line
A taxpayer should not delay in updating their KYT as government systems is becoming stricter on compliance. Update your KYT as soon as possible to avoid penalties and access full tax services.
If you need help, contact Estartup Nepal for guided support in completing your KYT and other tax obligations.