The Bhutan Government has announced new amendments to its taxation regime on 16 January 2020. The most important among all is the introduction of Goods and Service Tax Bill 2020 which imposes a flat rate of 7% GST on goods and services. It is expected that this would eliminate tax leakage and bring in additional tax revenue of Nu 3 billion a year.
Other important amendments to be noted:
| TAXABLE INCOME | TAX RATE |
| Nu300,000 and below | Nil |
| Above Nu300,000 to Nu400,000 | 10% of the amount by which the taxable income exceeds Nu300,000 |
| Above Nu400,000 to Nu650,000 | Nu10,000 plus 15% of the amount by which the total taxable income exceeds Nu400,000 |
| Above Nu650,000 to Nu1,000,000 | Nu47,500 plus 20% of the amount by which the total taxable income exceeds Nu650,000 |
| Above Nu1,000,000 toNu1,500,000 | Nu117500 plus 25% of the amount by which the taxable income exceeds Nu1,000,000 |
| Above Nu.1,5000,000 | Nu242,499 plus 30% of the amount by which the total taxable income exceeds Nu1,500,000 |
In Bhutan, there will be a 10% surcharge if the income is NU1,000,000 and above.
The total dividend receipt of Nu30,000 per annum will be exempt from PIT. Income tax of 20% will be imposed on lottery prizes equal or above Nu5,000.
