🇧🇹 Bhutan Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 30.0% Worldwide system

Corporate tax 22.0%

GST 5.0% standard rate

Tax residency 183 days 2 tax treaties

Bhutan tax profile

Data year: 2026

Tax system: Worldwide From income year 2026 the Income Tax Act of Bhutan 2025 replaces the 2001 Act. Residents are taxed on worldwide income; non-residents on Bhutan-source income and amounts attributed to a Bhutan permanent establishment or significant economic presence. Individuals use progressive slabs (nil on the first BTN 300,000). Companies and bodies of persons pay corporate income tax at a flat 22%; trusts taxed under qualifying rules pay 30%. Standard GST is 5%. Presumptive taxation applies to eligible small businesses (turnover up to BTN 5 million, subject to exclusions in the Act).
Top PIT rate: 30.0%
Corporate tax rate: 22.0%
GST: 5.0%
Capital gains tax: No Capital Gains Tax
Social security (employee): Rate not recorded
Social security (employer): Rate not recorded
Dividend withholding: 10.0%
Interest withholding: 10.0%
Royalty withholding: 5.0%
Treaty count: 2

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
BTN 0	and above	22.0%	$0 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
BTN 0	BTN 300,000	0.0%	$0 – $3,390
BTN 300,001	BTN 500,000	5.0%	$3,391 – $5,650
BTN 500,001	BTN 750,000	10.0%	$5,651 – $8,475
BTN 750,001	BTN 1,200,000	15.0%	$8,476 – $13,559
BTN 1,200,001	BTN 2,000,000	20.0%	$13,560 – $22,600
BTN 2,000,001	BTN 3,500,000	25.0%	$22,601 – $39,548
BTN 3,500,001	and above	30.0%	$39,549 +

Participation Exemption

Days threshold: 183 days
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.
Exit tax: No
CFC rules: No

Income Tax Act of Bhutan 2025 (MoF) (accessed Oct 9, 2026) Schedule 1 PIT/CIT rates, WHT, residency s.225, filing s.291, participation exemption Sch.3
Rules on the Income Tax Act of Bhutan 2025 (DRC) (accessed Oct 9, 2026) Effective 1 January 2026; procedural rules framed by MoF
DRC public notification — Income Tax Act 2025 rates (accessed Oct 9, 2026) Implementation notice and link to 2025 Rules
Business Bhutan — Income Tax Act 2026 reforms (accessed Oct 9, 2026) Cross-check PIT slabs, 22% CIT, presumptive tax, SEP, TDS overview
Bhutan DRC GST guide (accessed Oct 9, 2026) Standard GST 5% from 2026
Bhutan GST Rule 2026 (accessed Oct 9, 2026) GST framework replacing prior sales tax on covered supplies

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%