Central & South Asia
Bhutan tax rates 2026
A progressive personal system reaching 30%, a 25% corporate rate under the 2022 Income Tax Act, and a goods and services tax that replaced the old sales tax. Foreign ownership of land is prohibited.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 30%Progressive bands rising to 30% on the highest slab, with an exempt threshold for lower incomes. |
|---|---|
| Corporate income | 25% |
| Capital gains | Included in ordinary income for individuals. Corporate gains form part of business income. |
| VAT / GST | 5% |
| Dividends (WHT) | 10% |
| Interest (WHT) | 5% |
| Royalties (WHT) | 5% |
| Social security (employee) | 5% |
| Social security (employer) | 5% |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Rural and urban land and building taxes apply, revised under the Property Tax Act 2022. |
| Other | The Income Tax Act 2022 consolidated the personal, corporate and business income regimes. Foreign nationals cannot own land. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.