Content Group 5 of Bhutan

Type of Tax

Tax Rate and Base

Corporate Income Tax

30% on net profits. Losses incurred in a given year can be carried forward and then adjusted in the three following income years

Withholding Tax

2% for nationals holding a license, 5% for those without a license and 3% for non-nationals

Value Added Tax

- Plant and machine units - exempt

- Raw materials for manufacturing assembly (with a minimum of 40% value addition) - exempt

- 5% on cement

- 10% on hotel and restaurant services

- 30% on entertainment services

- 100% on beer

Rural Land Tax

0.2% to 2.5% of land value

Property transfer

5% of property sale value

Green Tax

20% for passenger vehicles with 1,800cc and above and 5% for those below 1,800cc