Tax Overview in Bhutan

Tax overview for Bhutan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Bhutan · tax year 2025 · changed 25 Jun 2026

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Key figures: Bhutan, 2025

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Tax (income) year

Calendar year, 1 January to 31 DecemberIncome Tax Act of the Kingdom of Bhutan 2001View source ↗

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 2001View source ↗

Basis of taxation

Source-based; income derived from sources in Bhutan is taxable, with limited taxation of foreign-source income ((approx — confirm))Income Tax Act of the Kingdom of Bhutan 2001

Personal income tax exemption threshold

Nu 300,000 of annual taxable income BTNIncome Tax Act of the Kingdom of Bhutan 2001View source ↗

Top personal income tax rate

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

Personal income tax surcharge (2025)

10% surcharge on net tax payable where gross income is Nu 1,000,000 or more (removed under the Income Tax Act 2025 from 2026)Income 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

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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 December (Income Tax Act of the Kingdom of Bhutan 2001)
Currency — Bhutanese Ngultrum (BTN / Nu), pegged 1:1 to the Indian Rupee (Royal Monetary Authority of Bhutan Act)
Tax authority — Department of Revenue and Customs (DRC), Ministry of Finance (Income 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 income ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)
Personal income tax exemption threshold — Nu 300,000 of annual taxable income BTN (Income Tax Act of the Kingdom of Bhutan 2001)
Top personal income tax rate — 30% percent (on annual income above Nu 3,500,000) (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 more (removed under the Income Tax Act 2025 from 2026) (Income Tax Act of the Kingdom of Bhutan 2001)
Corporate Income Tax (CIT) rate — 30% (registered companies) percent (reduced to 22% under the Income Tax Act 2025 from 1 Jan 2026) (Income Tax Act of the Kingdom of Bhutan 2001)
Business Income Tax (BIT) rate — 30% (unincorporated businesses) ((approx — confirm)) percent (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 2026 (Goods 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) ((approx — confirm exact date in DRC annual notification)) (Income Tax Act of the Kingdom of Bhutan 2001)

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Bhutan tax system at a glance (income year 2025)

Tax (income) year — Calendar year, 1 January to 31 December (Income Tax Act of the Kingdom of Bhutan 2001)

Currency — Bhutanese Ngultrum (BTN / Nu), pegged 1:1 to the Indian Rupee (Royal Monetary Authority of Bhutan Act)

Tax authority — Department of Revenue and Customs (DRC), Ministry of Finance (Income 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 income ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)

Personal income tax exemption threshold — Nu 300,000 of annual taxable income BTN (Income Tax Act of the Kingdom of Bhutan 2001)

Top personal income tax rate — 30% percent (on annual income above Nu 3,500,000) (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 more (removed under the Income Tax Act 2025 from 2026) (Income Tax Act of the Kingdom of Bhutan 2001)

Corporate Income Tax (CIT) rate — 30% (registered companies) percent (reduced to 22% under the Income Tax Act 2025 from 1 Jan 2026) (Income Tax Act of the Kingdom of Bhutan 2001)

Business Income Tax (BIT) rate — 30% (unincorporated businesses) ((approx — confirm)) percent (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 2026 (Goods 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) ((approx — confirm exact date in DRC annual notification)) (Income Tax Act of the Kingdom of Bhutan 2001)