- Brackets updated
migrated from the production database; research reasoning not recorded.
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
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| BTN 0 | and above | 22.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| BTN 0 | BTN 300,000 | 0.0% |
| BTN 300,001 | BTN 500,000 | 5.0% |
| BTN 500,001 | BTN 750,000 | 10.0% |
| BTN 750,001 | BTN 1,200,000 | 15.0% |
| BTN 1,200,001 | BTN 2,000,000 | 20.0% |
| BTN 2,000,001 | BTN 3,500,000 | 25.0% |
| BTN 3,500,001 | and above | 30.0% |
Tax flags
Participation Exemption
Tax residency
- 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
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- April 30
Sources
- 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
Change history
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.