From Employee to Entrepreneur: The Financial & Tax Perks and How Khatapana Can Help

Rabina sat in a café, sipping his morning coffee and staring at his laptop screen. As a seasoned graphics designer, he had been a part of various reputable companies in Nepal for nearly a decade. The projects were rewarding, and so was the paycheck, at first glance. But each year, as he filed his taxes, he felt a pang of disappointment. Here he was, at the peak of his career, and yet a substantial portion of his earnings went to taxes. An idea had been germinating in his mind – what if he started his own graphics design agency? Today, he decided, was the day to explore this path.

The Tax Dichotomy: Employee vs. Shareholder

The financial journey of an individual is shaped by myriad decisions. For Rabina, and many others like him, it boiled down to: "Should I be an employee or own my venture?" A deep dive into Nepal's tax structures offers a fascinating perspective.

The Employee's Tax Plight

Being an employee has its comforts, but it also comes with a price. As you move up the corporate ladder, you might find that a larger portion of your salary is consumed by taxes. In Nepal, this can go up to 39%.

The Shareholder's Advantage

On the flip side, company owners or shareholders benefit from a much lower tax on dividends—just 5%. This disparity between income tax and dividend tax can significantly affect one's wealth in the long run.

The Road Less Traveled: Starting Your Consulting Firm

The tax benefits alone made Rabina seriously consider setting up his own agency. And why not? Instead of working full time for a company, he could set up 'R Graphics Co.' and take on projects from various businesses, including his former employers.

The entrepreneurial route not only allows professionals to potentially earn more but also offers the benefit of reduced taxes. As a business owner, one can claim deductions on various business expenses, further reducing taxable income.

The Khatapana Advantage

The idea of setting up a business sounds great, but the procedures and paperwork can be overwhelming. That's where Khatapana, Nepal's Super Business App, comes in. It simplifies business registration, tax filings, and ensures compliance with all legal requirements.

In Conclusion

The working world is changing. While traditional employment offers certain comforts, entrepreneurship, especially with supportive platforms like Khatapana, provides both financial and creative freedom. Whether you're a graphics designer like Rabina or a professional in another field, the decision to remain an employee or become an entrepreneur is yours to make. But with the right resources, the entrepreneurial path can be both fulfilling and financially rewarding.