Central & South Asia
Bhutan: tax at a glance
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.
The taxes
- Personal income (top)
- 30%
- 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
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Bhutan?
The top marginal personal income tax rate in Bhutan is 30%. Progressive bands rising to 30% on the highest slab, with an exempt threshold for lower incomes.
What is the corporate tax rate in Bhutan?
The headline corporate income tax rate is 25%.
Does Bhutan tax capital gains?
Capital gains for individuals: Included in ordinary income for individuals. Corporate gains form part of business income..