Which income-tax rates apply to individuals in Bhutan in 2026?

An annual income of up to Nu 300 000 is taxed at 0 percent; the rate then increases progressively from 5 percent on the amount up to Nu 500 000 to 30 percent for income above Nu 3 500 000.

Which authority administers income tax and GST in Bhutan?

The Department of Revenue & Customs within the Ministry of Finance administers taxes through eight Regional Revenue & Customs Offices. Income-tax returns are handled through RAMIS, while GST procedures use GST systems and BITS.

Which taxes must businesses in Bhutan check in addition to income tax?

Businesses should also check GST, withholding tax, land and building taxes and, depending on the business, customs duties, excise taxes and Green Tax. The applicable charge depends on the activity, turnover, goods, property and cross-border services.

When must a business in Bhutan register for GST?

Mandatory GST registration generally begins at annual turnover of Nu 5 000 000 and must take place within 30 days after the threshold is exceeded; voluntary registration is possible between Nu 2 500 000 and below Nu 5 000 000.

Taxes in Bhutan

Bhutan’s tax system covers income tax, goods and services tax (GST), land and building taxes, transfer taxes, customs duties and excise taxes. Since January 1, 2026, new legal frameworks apply to income tax and GST. Administration is handled by Bhutan’s revenue and customs authority (Department of Revenue & Customs) through its regional revenue and customs offices (Regional Revenue & Customs Offices).

Tip

First classify your tax situation by residence, income types, business activity, turnover, property and cross-border services. For 2026, use current laws and DRC notices because older websites may still show earlier income-tax rates. Accurate records, a deadline calendar and timely registration help prevent the most common additional assessments and missed obligations.

byChoden&Tshering

Income tax in Bhutan covers income from employment, business activities, investments and other sources. For individuals, the rate is 0 percent on annual income up to Nu 300,000. The rate then rises to 5 percent on the amount above Nu 300,000 up to Nu 500,000, followed by bands of 10, 15, 20, 25 and 30 percent; the highest rate applies to income above Nu 3,500,000. Statutory deductions and exemptions may change the taxable base. These include, among other items, fixed-deposit interest of up to Nu 400,000 annually for individuals who are not engaged in business, dividends of up to Nu 300,000 annually, and lottery, betting or gambling winnings of up to Nu 5,000 per win, provided the applicable legal requirements are met. Companies and corporations generally pay 22 percent on taxable income, while trusts pay 30 percent. A partnership is generally treated as tax-transparent, so income and losses are attributed to the partners. For certain individuals resident in Bhutan who operate a domestic business, a presumptive tax of 15 percent of turnover may apply where turnover does not exceed Nu 5,000,000 and the other requirements are met. Non-resident digital providers may be subject to 22 percent where they have a significant economic presence, or under certain conditions to a final withholding tax of 5 percent.