According to the tax act 2059, yes you have to pay taxes in Nepal too. If you have paid taxes to the govt of the country you are working then you have to pay only the difference. For example you paid $2000 to US govt. and according to Nepal's calculation your tax is $2500 then you have to pay $500 to Nepal. I am not an expert, just sharing what I have understood. Your salary here in dollars might seem little, but just convert it into NRs............ The amount will be huge, that's what the govt of Nepal sees. I guess up to NRs one lakh (If I remember correctly that was the amount) you are exempt then above you have to pay I don't know may be 25% or even more. So eventually when you calculate that way the tax you owe comes out more than you pay to IRS and State Government. However, I don't know how they are going to tax the money you send back home to your parents. Perhaps they may charge flat rate or tax the amount over one lakh or something like that. Now a days even if you buy a vehicle in Nepal you have to show the source of income. So definitely your family has to show the source of income while buying business or land or home etc.Once again, I'm not an expert, I'm just sharing what I have understood. Maybe I'm wrong.

Sparty