CSR fund (1% of net profit)

What it is

Nepal's CSR rules ask companies to set aside at least 1% of their annual net profit for corporate social responsibility and spend it in the next fiscal year. The details depend on the company: industries follow the Industrial Enterprises Act 2020 (section 54) and the CSR Implementation Procedure 2025, banks and financial institutions the Nepal Rastra Bank's CSR guidelines (as amended in 2025), and insurers the Insurance Authority's rules (2023).

The CSR fund page brings this together. You choose which rules apply to you; it works out the fund from the net profit you enter, adds what was carried forward from last year, and shows what you have spent by CSR area and by province, your deadlines, and any rule that is not met.

A draft Company Act amendment (July 2026) would have companies deposit CSR money in a government fund. It is not law, and the page notes it as one to watch. The figures follow the published rules as CorpHands understands them. This is general information, not legal advice: confirm the figures with your auditor.

What you can use it for

• Work out the fund: 1% of last year's net profit, or your auditor's figure.
• See what you have available this year: the fund plus what was carried forward from last year.
• Track spending by CSR area and by province (Koshi, Madhesh, Bagmati, Gandaki, Lumbini, Karnali and Sudurpashchim).
• Banks: follow the 60% spent in the year, at least 10% in each province for commercial banks and national-level institutions, and at most 5% on one programme, and see the dates for the activity lists to Nepal Rastra Bank (15 days before 1 Shrawan and before 1 Magh, about mid-January).
• Industries: follow the share spent in areas affected by your operations (at least half) and the date of the expenditure report (within six months after the fiscal year ends).
• List this year's programmes with their CSR area, province, district, organisation, beneficiaries and the % in extreme poverty, and download the CSR statement (CSV).

How to do it

Choose your rules and enter the figures

1. Open CSR fundGo to CSR workspace → CSR fund. The page shows the current fiscal year, such as FY 2083/84.
2. Choose which rules applyOpen Edit financial figures and, under Which rules apply, choose Industry (Industrial Enterprises Act), Bank or financial institution (NRB), Insurer or Other company. Banks tick the box if they are a commercial bank or national-level institution.
3. Enter net profitEnter last year's net profit from the audited accounts. If your auditor's fund is different, enter it under CSR fund, if different. Save.

Tag your programmes

1. Open the budgetEach CSR programme is a programme in the Budget. Click CSR details next to it.
2. Add the detailsSet the CSR area, whether the company runs it itself or through an organisation, the Province and District, whether it is in an area affected by your operations, the beneficiaries and the % in extreme poverty or marginalised.
3. Record paymentsRecord each payment in the budget with its receipt. Only paid amounts dated in the fiscal year count.

Check the page and download

1. Read the summaryThe top of the page shows the fund, what is available including the carry-forward, what is spent and what is left.
2. Fix the warningsThe warnings list anything to fix, such as spending without a CSR area or province, payments to organisations not marked as verified, a province below 10% or a programme above 5%.
3. DownloadChoose Download CSR statement (CSV) for your auditor, or get the Nepal CSR pack from the ESG report.

Tips and good practice

• Enter last year's net profit as soon as the accounts are ready, so you know the fund before you plan programmes. Banks need their activity list ready 15 days before each half-year.
• Tag every programme with a province from the start. Banks spread across provinces find it hard to catch up late in the year.
• Employee volunteering is not CSR spending. CorpHands reports the hours separately, for your annual report and GRI 413.
• Branding or promotion and staff benefits don't count. First priority goes to people in extreme poverty (Supreme Court directive, December 2024).
• Your fiscal year follows the Nepali calendar by default. Change it in Settings → Reporting before you record spending, if your company uses a different year.

Questions