20% standard rate.
Progressive, 0% to 25%; territorial system, though residents (including expats) may be taxed on worldwide income depending on residency status.
10% (Bhutan Sales Tax / GST-equivalent).
An individual must have a permanent home in Bhutan and have been present for at least 182-183 days in a tax year to be a resident, confirmed via two independent sources. Residents, including expatriates, may be taxed on worldwide income depending on residency status, while non-residents are taxed only on Bhutan-source income - Bhutan's system is fundamentally territorial with a worldwide-income overlay for established residents. A non-resident entity with a permanent establishment in Bhutan is taxed as a resident entity at the standard 25% corporate rate (or the 30% business income tax rate, depending on structure), confirmed via Orbitax; there is no separate branch tax on deemed remittance of after-tax profits to a foreign head office.
No Controlled Foreign Company regime was identified in available sources this session. This is a genuine gap rather than a confirmed absence.
Confirmed directly via the primary Rules on the Income Tax Act of Bhutan 2025 (effective January 1, 2026), published on Bhutan's Ministry of Finance website: an EBITDA-based interest deductibility limitation applies, under which a person's EBITDA is deemed to have a value of zero under specified circumstances defined in the Rules, restricting interest deductibility accordingly. This is a genuine, specific, primary-sourced mechanism - a materially more reliable finding than a generic secondary-source claim that "thin capitalization rules exist" without detail.
No domestic FBAR/Form 8938-equivalent requiring Bhutan residents to self-report their own foreign accounts was identified. Expatriates in Bhutan are required to file tax returns with the Department of Revenue and Customs declaring worldwide income, and remittance of income abroad is permitted subject to certain conditions and tax clearances, confirmed via a specialist source. Institutional-level CRS/FATCA participation status was not independently confirmed this session. Separately and independently of local law, US citizens and Green Card holders with Bhutan accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of local requirements.
Bhutan has a very limited tax treaty network, confirmed via TaxAtlas, with India being the most significant partner given close economic ties between the two countries. Bhutan has double taxation treaties with 5 countries in total, confirmed via a separate specialist source, with Bangladesh confirmed as a second named partner alongside India via a third source specifically covering Bhutan's cross-border withholding rates (10% on dividends, interest, and royalties, with treaty relief available under the India and Bangladesh treaties).