OpenAccountants/Bhutan/Bhutan Corporate Income Tax

Bhutan Corporate Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: corporate income tax for Bhutan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Bhutan, 2025

Every figure is drawn from this Tax Guide and cited to its source.

CIT/BIT overview

Bhutan taxes incorporated companies under Corporate Income Tax (CIT) and unincorporated businesses under Business Income Tax (BIT), both governed by the Income Tax Act 2001. For income year 2025 the standard CIT rate is 30%; from 1 January 2026 the Income Tax Act 2025 cuts CIT to a flat 22%.Income Tax Act of the Kingdom of Bhutan 2001

Corporate Income Tax standard rate (2025)

30%Income Tax Act of the Kingdom of Bhutan 2001View source ↗

Corporate Income Tax rate from 2026

22% (flat, all companies)Income Tax Act of Bhutan 2025View source ↗

Business Income Tax rate (unincorporated, 2025)

30%Income Tax Act of the Kingdom of Bhutan 2001

Tax base

Net profit (gross income less allowable business expenses, depreciation and deductions) per the ActIncome Tax Act of the Kingdom of Bhutan 2001

TDS / withholding on dividends

10% on dividends from a Bhutan-registered company (bonus shares excluded)Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions)View source ↗

TDS / withholding on interest

5% on interest from fixed deposits with financial institutions in BhutanIncome Tax Act of the Kingdom of Bhutan 2001 (TDS provisions)View source ↗

TDS on contract income (Bhutanese firms)

2% of gross contract paymentIncome Tax Act of the Kingdom of Bhutan 2001 (TDS provisions)View source ↗

TDS on contract income (non-Bhutanese firms)

3% of gross contract paymentIncome Tax Act of the Kingdom of Bhutan 2001 (TDS provisions)View source ↗

Withholding on royalties / payments to non-residents

Withheld at source per the Act; treaty rates may apply (Bhutan–India) ((approx — confirm rate))Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions)

Loss carry-forward

Tax losses carried forward (extended to indefinite carry-forward under the Income Tax Act 2025) ((approx — confirm 2025 carry-forward period))Income Tax Act of the Kingdom of Bhutan 2001

Presumptive / small business regime

Simplified presumptive tax for businesses with turnover under Nu 5 million (introduced under the Income Tax Act 2025; professionals excluded)Income Tax Act of Bhutan 2025View source ↗

CIT / BIT filing and payment deadline

By 31 March following the close of the income year ((approx — confirm exact date))Income Tax Act of the Kingdom of Bhutan 2001View source ↗

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

Bhutan Corporate Income Tax

Corporate and Business Income Tax (income year 2025)

CIT/BIT overview — Bhutan taxes incorporated companies under Corporate Income Tax (CIT) and unincorporated businesses under Business Income Tax (BIT), both governed by the Income Tax Act 2001. For income year 2025 the standard CIT rate is 30%; from 1 January 2026 the Income Tax Act 2025 cuts CIT to a flat 22%. (Income Tax Act of the Kingdom of Bhutan 2001)
Corporate Income Tax standard rate (2025) — 30% percent (Income Tax Act of the Kingdom of Bhutan 2001)
Corporate Income Tax rate from 2026 — 22% (flat, all companies) percent (effective 1 January 2026 under the Income Tax Act of Bhutan 2025) (Income Tax Act of Bhutan 2025)
Business Income Tax rate (unincorporated, 2025) — 30% percent ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)
Tax base — Net profit (gross income less allowable business expenses, depreciation and deductions) per the Act (Income Tax Act of the Kingdom of Bhutan 2001)
TDS / withholding on dividends — 10% on dividends from a Bhutan-registered company (bonus shares excluded) percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))
TDS / withholding on interest — 5% on interest from fixed deposits with financial institutions in Bhutan percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))
TDS on contract income (Bhutanese firms) — 2% of gross contract payment percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))
TDS on contract income (non-Bhutanese firms) — 3% of gross contract payment percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))
Withholding on royalties / payments to non-residents — Withheld at source per the Act; treaty rates may apply (Bhutan–India) ((approx — confirm rate)) (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))
Loss carry-forward — Tax losses carried forward (extended to indefinite carry-forward under the Income Tax Act 2025) ((approx — confirm 2025 carry-forward period)) (Income Tax Act of the Kingdom of Bhutan 2001)
Presumptive / small business regime — Simplified presumptive tax for businesses with turnover under Nu 5 million (introduced under the Income Tax Act 2025; professionals excluded) (Income Tax Act of Bhutan 2025)
CIT / BIT filing and payment deadline — By 31 March following the close of the income year ((approx — confirm exact date)) (Income Tax Act of the Kingdom of Bhutan 2001)

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Corporate and Business Income Tax (income year 2025)

CIT/BIT overview — Bhutan taxes incorporated companies under Corporate Income Tax (CIT) and unincorporated businesses under Business Income Tax (BIT), both governed by the Income Tax Act 2001. For income year 2025 the standard CIT rate is 30%; from 1 January 2026 the Income Tax Act 2025 cuts CIT to a flat 22%. (Income Tax Act of the Kingdom of Bhutan 2001)

Corporate Income Tax standard rate (2025) — 30% percent (Income Tax Act of the Kingdom of Bhutan 2001)

Corporate Income Tax rate from 2026 — 22% (flat, all companies) percent (effective 1 January 2026 under the Income Tax Act of Bhutan 2025) (Income Tax Act of Bhutan 2025)

Business Income Tax rate (unincorporated, 2025) — 30% percent ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)

Tax base — Net profit (gross income less allowable business expenses, depreciation and deductions) per the Act (Income Tax Act of the Kingdom of Bhutan 2001)

TDS / withholding on dividends — 10% on dividends from a Bhutan-registered company (bonus shares excluded) percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))

TDS / withholding on interest — 5% on interest from fixed deposits with financial institutions in Bhutan percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))

TDS on contract income (Bhutanese firms) — 2% of gross contract payment percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))

TDS on contract income (non-Bhutanese firms) — 3% of gross contract payment percent (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))

Withholding on royalties / payments to non-residents — Withheld at source per the Act; treaty rates may apply (Bhutan–India) ((approx — confirm rate)) (Income Tax Act of the Kingdom of Bhutan 2001 (TDS provisions))

Loss carry-forward — Tax losses carried forward (extended to indefinite carry-forward under the Income Tax Act 2025) ((approx — confirm 2025 carry-forward period)) (Income Tax Act of the Kingdom of Bhutan 2001)

Presumptive / small business regime — Simplified presumptive tax for businesses with turnover under Nu 5 million (introduced under the Income Tax Act 2025; professionals excluded) (Income Tax Act of Bhutan 2025)

CIT / BIT filing and payment deadline — By 31 March following the close of the income year ((approx — confirm exact date)) (Income Tax Act of the Kingdom of Bhutan 2001)