Professional Accounting & Assurance Services
Factual, rigorous assurance designed to ensure statutory compliance under the Companies Act 2063, Income Tax Act 2058, and Nepal Standards on Auditing.
Audit & Assurance
Independent, rigorous, and objective evaluation of financial statements ensuring regulatory compliance and stakeholder confidence.
Under the Companies Act, 2063, the Nepal Standards on Auditing (NSA), and ICAN directives, independent assurance forms the cornerstone of financial integrity. Sima & Associates provides comprehensive audit services designed to deliver compliance, identify operational vulnerabilities, and strengthen internal control environments.
Key Focus Areas
- Statutory Audit: Comprehensive annual examination of financial statements for public and private limited companies in accordance with NSA, delivering an independent audit report on the true and fair view of accounts.
- Tax Audit: Specialized examination under the Income Tax Act, 2058, reconciling accounting profit with taxable income and verifying compliance with allowable deductions, depreciation schedules, and tax exemptions.
- Internal Audit & Risk Advisory: Systematic evaluation of organizational governance, risk management frameworks, and internal control systems to assist management in mitigating operational leakages.
- Investigative & Forensic Review: Targeted financial investigations conducted at the request of management or judicial stakeholders to establish factual evidence regarding financial irregularities or control overrides.
- Development Sector & Project Audits: Audits for non-governmental organizations (NGOs) and international agencies operating in Nepal, verifying compliance with project agreements, Social Welfare Council (SWC) rules, and donor covenants.
Taxation Advisory & Compliance
Strategic tax planning, seamless statutory filings, and principled representation before Inland Revenue authorities.
Nepal's taxation landscape—governed by the Income Tax Act, 2058, Value Added Tax Act, 2052, Excise Act, 2058, and annual Finance Acts—is dynamic and technical. We help corporate entities and taxpayers navigate statutory obligations efficiently while preventing exposure to penalties, interest, and disputed assessments.
Key Focus Areas
- Corporate & Individual Income Tax Compliance: Preparation and filing of annual income tax returns (D-01, D-02, D-03), computation of quarterly estimated tax installments, and year-end tax reconciliations.
- Value Added Tax (VAT) & Excise Management: Monthly VAT return filing on the IRD portal, input tax credit optimization, purchase and sales register audits, and VAT refund processing.
- Withholding Tax (TDS) Monitoring & ETDS: Systematic deduction and monthly deposit oversight for payroll (Sec 87), services (Sec 88), lease payments (Sec 88Ka), and contract supplies (Sec 89).
- Tax Dispute Resolution & IRD Representation: Principled defense during tax audits by Inland Revenue Offices (IRO) or the Large Taxpayers Office (LTO), preparing factual rebuttals, and managing administrative reviews.
- International Taxation & DTAA Advisory: Navigating Double Taxation Avoidance Agreements, foreign remittance taxation, withholding obligations on technical service fees, and transfer pricing documentation.
Corporate Secretarial & Advisory
End-to-end legal compliance, foreign direct investment facilitations, and corporate restructuring under the Companies Act.
Corporate existence in Nepal requires continuous compliance with the Office of the Company Registrar (OCR), Department of Industry (DOI), and Nepal Rastra Bank (NRB). Sima & Associates assists enterprises from pre-incorporation structuring through complex equity transactions and annual statutory filings.
Key Focus Areas
- Entity Incorporation & Setup: Registration of Private Limited Companies, Public Limited Companies, Branch Offices, Liaison Offices, and Non-Profit Entities at the OCR.
- Foreign Direct Investment (FDI) Approvals: Structuring foreign capital entry, securing approvals from the Department of Industry / Investment Board Nepal, and obtaining foreign currency entry/repatriation clearances from NRB.
- Annual Secretarial Filings: Drafting Board Minutes, AGM Notices, Annual Shareholder Returns (Section 51, 78, 80 filings), and statutory register maintenance.
- Capital Structuring & Restructuring: Capital increments, share allotment filings, rights issuances, debt-to-equity conversions, and corporate merger / amalgamation advisory.
- Due Diligence & Transaction Advisory: Independent financial and tax due diligence for business acquisitions, mergers, equity partnerships, and bank financing appraisals in Nepal.
NFRS / NAS Implementation
Guiding Nepalese enterprises through seamless convergence from local GAAP to international reporting standards.
The phased implementation of Nepal Financial Reporting Standards (NFRS)—which converge directly with International Financial Reporting Standards (IFRS)—mandates sophisticated accounting treatments for public interest entities, BFIs, and commercial enterprises. We provide end-to-end conversion, technical policy drafting, and fair value modeling.
Key Focus Areas
- NFRS First-Time Adoption (NFRS 1): Formulating opening balance sheets, identifying transition exemptions, and computing retrospective accounting adjustments upon initial transition.
- NAS for SMEs Implementation: Tailored convergence for Small and Medium-Sized Enterprises seeking simplified, robust reporting frameworks aligned with national standards.
- Accounting Policy Formulation: Drafting authoritative, customized Accounting Policy Manuals aligned with entity-specific operational models and industry requirements.
- Complex Financial Instruments & Leases: Modeling expected credit loss impairment under NFRS 9, lease capitalization under NFRS 16, and revenue recognition contracts under NFRS 15.
- Staff Training & Capacity Building: Structured workshops and operational guidance for client accounting departments to sustain ongoing NFRS compliance independently.
Accounting Outsourcing & Payroll
Reliable, cloud-based financial administration that allows corporate leadership to focus on core strategic growth.
Maintaining an internal accounting department with complete statutory knowledge can be challenging and resource-intensive. Sima & Associates delivers a turn-key finance function, ensuring real-time books of accounts, accurate payroll distributions, and prompt social security contributions.
Key Focus Areas
- Cloud-Based Bookkeeping: Daily transaction recording, bank reconciliations, vendor billing, and receivables monitoring using modern cloud accounting platforms.
- Statutory Payroll Administration: Monthly salary computation, overtime calculations, festival allowance (Dashain bonus) accruals, and provident fund deductions.
- Social Security Fund (SSF) Management: Monthly 31% SSF contribution filing, employee enrollment, and claim assistance on the electronic SSF portal.
- Periodic Financial Reporting (MIS): Monthly or quarterly profit & loss statements, balance sheets, cash flow projections, and budget-vs-actual variance analyses for directors.
- Audit Readiness & Year-End Pack: Preparation of complete audit schedules, fixed asset registers, and confirmation letters prior to the arrival of external statutory auditors.
Require Independent Audit or Advisory Representation?
Contact our senior partner cell to evaluate corporate audit appointments, technical NFRS transition schedules, or tax dispute representation.