DoubleTaxationTaxes on salary: Bhutan preliminary data
How much income tax and social contributions are paid on a salary in Bhutan, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | BTN 6,338,075 ≈ €60,000 |
|---|---|
| Income tax | BTN 1,443,922 ≈ €13,669 |
| Take-home pay | BTN 4,894,152 ≈ €46,331 |
| Employer's labour cost | BTN 6,338,075 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 BTN 3,169,037 | €60,000 BTN 6,338,075 | €120,000 BTN 12,676,149 |
|---|---|---|---|
| Sole proprietor | BTN 475,533 16.7 % | BTN 1,298,780 22.8 % | BTN 3,010,060 26.4 % |
| Company | BTN 849,936 29.8 % | BTN 1,699,872 29.8 % | BTN 3,399,743 29.8 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Bhutan yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 105.634575 BTN (Ngultrum pegged at par to the Indian rupee; INR rate from IMF representative rates (RMA site failed TLS verification), 02/01/2026) ↗
Sources
- Department of Revenue and Customs — Withholding tax rates for employers (Annexure I), January 2026
- Department of Revenue and Customs — Rules on the Income Tax Act of Bhutan 2025 (withholding Annexure I, presumptive tax, return forms incl. ITR Schedule A line 8: specific deduction 15% or Nu 150,000, Section 44)
- Department of Revenue and Customs — Corporate Income Tax page (old Act rates)
- IMF — Representative exchange rates, January 2026 (Indian rupee)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.