iCalculator™ BT: Bhutan Tax Calculators
Welcome to iCalculator™ BT, your comprehensive suite of free tax calculators for Bhutan. iCalculator™ has provided free tax calculators for Bhutan since 2019. Since those early days we have extended our resources for Bhutan to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Bhutan Tax Calculator and salary calculators within our Bhutan tax section are based on the latest tax rates published by the Tax Administration in Bhutan. In this dedicated Tax Portal for Bhutan you can access:
Bhutan Tax Calculator 2024/25
The Bhutan Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Bhutan. This includes calculations for
- Employees in Bhutan to calculate their annual salary after tax.
- Employers to calculate their cost of employment for their employees in Bhutan.
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Bhutan, officially known as the Kingdom of Bhutan, is a small country nestled in the eastern Himalayas in South Asia. It is landlocked, bordered by two major countries: China to the north and India to the south, east, and west. This unique geographical location endows Bhutan with a combination of breathtaking mountainous landscapes and rich biological diversity. The country is known for its monastic fortresses, known as Dzongs, and its vibrant culture deeply rooted in Buddhism, which is the predominant religion.
Culturally, Bhutan is distinct for its philosophy of Gross National Happiness, which prioritizes the well-being and happiness of its citizens over economic growth. The Bhutanese culture is heavily influenced by Tibetan Buddhism, reflected in its art, architecture, and festivals. Traditional dress is an important part of Bhutanese identity, with men wearing the ‘gho’ and women the ‘kira’. The country is also known for its commitment to environmental conservation and is one of the few countries in the world with negative carbon emissions.
Economically, Bhutan is categorized as a lower middle-income nation. Its economy is based largely on agriculture, forestry, and the sale of hydroelectric power to India. Agriculture remains the main source of livelihood for the majority of the population, with farming practices largely subsistence-based. The country is rich in hydropower resources, which not only meet its own energy needs but also provide a significant source of revenue through exports. Tourism is another key sector, with the government promoting a policy of ‘high value, low impact’ tourism to preserve its natural and cultural heritage.
Bhutan's economic development is constrained by its rugged terrain and the lack of significant natural resource deposits. However, it has made significant progress in recent years in areas like health and education, funded partly by its hydropower exports. For more detailed information about Bhutan's neighboring countries, you can visit their respective pages on iCalculator: China and India.
Overview of Taxation in Bhutan
The tax system in Bhutan is characterized by its simplicity and effectiveness, focusing on both direct and indirect taxation to generate revenue for the government. Direct taxes in Bhutan include personal income tax, which is levied on the income of individuals, and corporate income tax, applicable to the profits of companies operating within the country. The tax structure is designed to be progressive, ensuring fairness in the tax burden distribution.
Indirect taxes in Bhutan comprise sales tax and customs duties. Sales tax is applied to goods and services, while customs duties are levied on imported goods. These indirect taxes are crucial in generating revenue, especially considering Bhutan’s limited industrial base. Additionally, Bhutan imposes property taxes, which are an important source of revenue for local governments.
Bhutan's taxation policies reflect its broader economic and social goals, including the promotion of Gross National Happiness. The government's approach to taxation aims to encourage economic growth while ensuring the equitable distribution of resources and maintaining fiscal stability. The tax system in Bhutan also includes exemptions and incentives designed to promote specific sectors and activities aligned with national development objectives.
For individuals and businesses seeking to understand the complexities of Bhutan’s tax system, the latest tax tools and tax tables provide valuable resources. These tools offer detailed insights into the current tax regulations and guidelines, making them essential for effective financial planning and compliance in Bhutan.