Tax in Bhutan
Last reviewed: · by TaxProsRated editorial
TL;DR
Bhutan's Department of Revenue and Customs administers personal income tax at progressive 0/10/15/20/25 percent across five bands, corporate income tax at 25 percent, and Sales Tax at 10 percent (Bhutan does not currently have credit-method VAT).
Tax authority
Department of Revenue and Customs under the Ministry of Finance [SC1]. Substantive law: Income Tax Act 2001 (as amended); Sales Tax, Customs and Excise Act 2000.
Filing framework
Individual annual returns due 31 March. Corporate annual returns due 31 March. Sales Tax monthly.
Residency
Residents are physically present 183+ days OR maintain permanent home [SC2]. Worldwide income; non-residents on Bhutan-source.
Personal income tax
Five bands: 0 percent up to BTN 300,000; 10 percent on BTN 300,001-400,000; 15 percent on BTN 400,001-650,000; 20 percent on BTN 650,001-1,000,000; 25 percent above. (Top reduced from 30 percent under successive amendments.)
Corporate tax
25 percent on Bhutan-source profits (raised under successive amendments). Withholding on non-resident dividends 10 percent. Pillar Two not yet transposed.
Indirect tax
Sales Tax 10 percent under Act 2000 [SC3]. Bhutan does not currently have credit-method VAT; transition to GST has been progressively considered.
Cryptoassets
Bhutan has been progressively engaging with cryptoasset infrastructure. Druk Holding & Investments has reportedly engaged in sovereign cryptoasset mining operations leveraging hydroelectric power.
Treaties
Limited DTT network. SAARC member.
Frequently asked
What are the Bhutan personal income tax rates?
Five bands: 0 percent up to BTN 300,000; 10/15/20/25 percent ascending. Top 25 percent above BTN 1,000,000 (reduced from 30 percent under successive amendments).
What is the Bhutan corporate tax rate?
25 percent on Bhutan-source profits (raised under successive amendments). Withholding on non-resident dividends 10 percent. Pillar Two not yet transposed.
What is the Bhutan VAT/Sales Tax rate?
Sales Tax 10 percent. Bhutan does not currently have credit-method VAT; transition to GST has been progressively considered.
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The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- Department of Revenue and Customs (Bhutan) · accessed
- Government of Bhutan · accessed
- Government of Bhutan · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Bhutan as of May 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.