Tax
Income Tax Act 2001 with a 2022 GST Act awaiting full commencement
Corporate income tax is 25 percent under the Income Tax Act 2001, with personal tax on a progressive scale. The Goods and Services Tax Act 2022 was enacted to replace sales tax but its commencement has been deferred.
Key rules
- Deadline — Corporate return by 31 March for the calendar tax year
- Deadline — Monthly TDS remittance to the Department of Revenue and Customs
Governing law
- Income Tax Act of the Kingdom of Bhutan, 2001as amended
- Goods and Services Tax Act, 2022
- Sales Tax, Customs and Excise Act, 2000
In practice
Business income tax at 30 percent applies to unincorporated businesses, while incorporated companies pay corporate income tax at 25 percent. Bhutan's treaty network is small — the India treaty matters most, given trade concentration. Because GST commencement has slipped more than once, any advice on indirect tax should be confirmed against current DRC notifications rather than the 2022 Act alone.