Bhutan vs Tonga
Tax systems side by side: income tax rates, corporate tax, VAT, withholding, special regimes and filing rules.
Overview
At a glance
Income tax
 BT
Bhutan
|
 TO
Tonga
|
|
|---|---|---|
| Top rate | 30% | 25% |
| Effective top rate | 30% | 25% |
| Capital gains tax | 0% | 25% |
| Capital gains notes | There is no separate capital gains tax. Gains on disposal of assets are included in assessable income and taxed under the ordinary income rules (employment, business, investment or other sources). | There is no separate capital gains tax schedule. Gains on the disposal of business assets are included in business income and taxed at the 25% company rate or at progressive personal rates (up to 25%) for sole traders and individuals. |
| Social security (employee) | — | 5% |
| Social security (employer) | — | 7.5% |
Withholding rates
Other taxes
Tax features
|
BT
Bhutan
|
TO
Tonga
|
|
|---|---|---|
| Personal income tax | Yes | Yes |
| Capital gains tax | No | Yes |
| Corporate tax | Yes | Yes |
| VAT / GST | Yes | Yes |
| Wealth tax | No | No |
| Inheritance tax | No | No |
| Exit tax | No | No |
| CFC rules | No | No |
| Digital services tax | No | No |
| Crypto-specific rules | No | No |
| Participation exemption | Yes | No |
| Territorial exemption | No | No |
Special regimes
Residency and filing
|
BT
Bhutan
|
TO
Tonga
|
|
|---|---|---|
| Residency threshold | 183 days | 183 days |
| Filing deadline | April 30 | October 31 |
| Automatic extension | No | No |
| Residency rules | An individual is resident for an income year if they have a permanent home in Bhutan; are present in Bhutan for the whole income year; are present for 183 or more days in the income year or in any 12-month period ending in that year; or are a Bhutanese government employee or official serving abroad. Companies, partnerships and trusts have separate residence tests in the Act. | An individual is a resident for a fiscal year if they have a home in Tonga at any time during the year, are present in Tonga for 183 days in any 12-month period that commences or ends during the year, or are a Government of Tonga employee posted abroad. Part-year arrival and departure rules apply when residency status changes between years. A company is resident if incorporated in Tonga, has its centre of administrative management in Tonga during the year, or is a partnership with any resident partner. |
| Filing notes | Unless exempt, every person with taxable income must file an annual return of income by the last day of April following the income year (calendar-year income year unless otherwise prescribed). Withholding tax must generally be remitted within 10 days after the end of each calendar month. | Employers remit PAYE monthly within 28 days after each month end. PAYE reconciliation and employee withholding certificates are due by 31 August following the year end. Annual income tax returns for individuals with business income (Form 10) and for companies and partnerships (Form 11) are due by 31 October. Extensions require a written or email application before the due date. |