Source-cited draft: tax overview for Bhutan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
General reference only
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Source-cited draft. This skill is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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| Bhutan tax system at a glance (income year 2025) | Bhutan's direct taxes for income year 2025 run under the Income Tax Act of the Kingdom of Bhutan 2001 (as amended), administered by the Department of Revenue and Customs (DRC) under the Ministry of Finance. A major reform — the Income Tax Act of Bhutan 2025 and a new Goods and Services Tax — takes effect 1 January 2026, so the figures below are the pre-reform rules still in force for the 2025 income year. | |
| Tax (income) year | Calendar year, 1 January to 31 DecemberIncome Tax Act of the Kingdom of Bhutan 2001 | |
| Currency | Bhutanese Ngultrum (BTN / Nu), pegged 1:1 to the Indian RupeeRoyal Monetary Authority of Bhutan Act | |
| Tax authority | Department of Revenue and Customs (DRC), Ministry of FinanceIncome Tax Act of the Kingdom of Bhutan 2001 | |
| Basis of taxation | Source-based; income derived from sources in Bhutan is taxable, with limited taxation of foreign-source incomeIncome Tax Act of the Kingdom of Bhutan 2001 | |
| Personal income tax exemption threshold | Nu 300,000 of annual taxable incomeIncome Tax Act of the Kingdom of Bhutan 2001 | |
Bhutan's direct taxes for income year 2025 run under the Income Tax Act of the Kingdom of Bhutan 2001 (as amended), administered by the Department of Revenue and Customs (DRC) under the Ministry of Finance. A major reform — the Income Tax Act of Bhutan 2025 and a new Goods and Services Tax — takes effect 1 January 2026, so the figures below are the pre-reform rules still in force for the 2025 income year.
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Other Bhutan computations in the OpenAccountants library.
| Top personal income tax rate |
| 30%Income Tax Act of the Kingdom of Bhutan 2001 |
| Personal income tax surcharge (2025) | 10% surcharge on net tax payable where gross income is Nu 1,000,000 or moreIncome Tax Act of the Kingdom of Bhutan 2001 |
| Corporate Income Tax (CIT) rate | 30% (registered companies)Income Tax Act of the Kingdom of Bhutan 2001 |
| Business Income Tax (BIT) rate | 30% (unincorporated businesses)Income Tax Act of the Kingdom of Bhutan 2001 |
| VAT / GST in 2025 | No GST in force in 2025; indirect tax was Sales Tax. GST at 5% takes effect 1 January 2026Goods and Services Tax Act of Bhutan 2020 (as amended 2025) |
| Annual income tax filing deadline | By 31 March following the close of the income year (e.g. 31 March 2026 for income year 2025)Income Tax Act of the Kingdom of Bhutan 2001 |
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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