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ISO 4217


Dzongkha and English




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Bhutan is a small landlocked country in South Asia, located between India and China. It has a population of approximately 754,000 people and a GDP of $2.6 billion. The economy of Bhutan is largely based on agriculture, forestry, and tourism. Agriculture accounts for about 60% of the country’s GDP, while forestry and tourism contribute about 20% each. The country has seen steady economic growth in recent years, with an average annual growth rate of 6.4% between 2011 and 2018. Bhutan has also seen a decrease in poverty, with the poverty rate dropping from 23.2% in 2007 to 12.8% in 2018. The country has also made significant progress in terms of human development, with the Human Development Index (HDI) increasing from 0.541 in 2010 to 0.637 in 2018. Bhutan has also made great strides in terms of gender equality, with the Gender Inequality Index (GII) decreasing from 0.541 in 2010 to 0.417 in 2018. Overall, Bhutan has made great progress in terms of economic development and human development, and is well on its way to becoming a prosperous nation.


Taxation in Bhutan is governed by the Income Tax Act of Bhutan, which was first introduced in 2001 and has been updated several times since then. The tax system in Bhutan is administered by the Department of Revenue and Customs under the Ministry of Finance.

Personal income tax is levied on all individuals who are Bhutanese citizens or residents of Bhutan. The tax rates are progressive, ranging from 0% to 25%, depending on the income level. The first BTN 200,000 of annual income is exempt from taxation, and there are various deductions and credits available to reduce the tax liability. Non-residents of Bhutan are subject to a flat tax rate of 30% on income earned in Bhutan.

Corporate income tax is levied on all companies and businesses operating in Bhutan. The standard corporate tax rate is 30% on the net taxable income. However, certain businesses such as hydropower companies, hotels, and IT companies may be eligible for tax holidays or reduced tax rates under certain circumstances.

The tax year in Bhutan runs from January 1st to December 31st. The deadline for filing personal income tax returns is March 31st of the following year, while the deadline for filing corporate tax returns is May 31st. Taxpayers are required to make advance tax payments on a quarterly basis, with the due dates falling on June 30th, September 30th, December 31st, and March 31st.

Payments can be made online or in person at designated banks. The penalty for late payment or non-payment of taxes can range from 10% to 25% of the tax due, depending on the length of the delay. Additionally, interest may be charged on any outstanding tax liability. 

Overall, taxation in Bhutan is relatively straightforward, and the government has taken steps in recent years to simplify the tax system and make it more user-friendly for taxpayers.

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