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..

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.

Worldwide (residence-based) Last verified July 2026

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)

drc.gov.bt