Facilities of IT 2000

The following facilities shall be provided for development of the information technology sector:

1. One percent customs duty shall be levied on hardware, software and all kinds of computer spare parts imported by training institutions related to information technology, albeit on the recommendation of the National Information and Technology Center on the basis of services rendered and the achievements of such institutions.
2. As software development services based on software are operated twenty-four hours , such services shall be declared essential services to guarantee regular production by employees working in the companies related to such services, and arrangements shall be made accordingly.
3. A venture capital fund shall be established by utilizing capital market with the joint investment of Government and the private sector.
4. Domestic preference shall be given in accordance with the prevailing law on the computers , spare parts and software produced within the country.
5. Software may be directly depreciated for the purpose of income tax , whereas equipment relating to information technology may be allowed an accelerated depreciation for two years.
6. In cases when an investment has been made in foreign currency either as a loan or share capital required to build and operate infrastructure, the investor shall be allowed to repatriate the principal and interest of the loan and dividends accordance with the prevailing laws.
7. As Nepali nationals working abroad can play an important role in the technology transfer and market promotion in this sector, they shall be encouraged to invest their foreign currency earning in this sector.