FAQ

  1. Vehicle Allotment
  2. Direct Tax Structure
  3. BIT/CIT
  4. PIT
  5. What are the minimum conditions for Budgetary Fund Release

Vehicle Allotment

1. What are the documents required to be submitted?
Duly filled in form counter signed by the Ministries/Dzongkhags and a copy of the latest promotion order.

2. How to apply for the procurement of pool vehicles?
Apply to the Director, Department of National Budget (DNB) with budget details. DNB will check the budget and seek approval of the Ministry of Finance and MoF will issue the final import/purchase authorization order.
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Direct Tax Structure

  • Business Income Tax (BIT): 30% on net profit
  • Corporate Income Tax (CIT): 30% on net profit
  • Personal Income Tax(PIT)
  • Property Transfer Tax: 5%

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Business Income Tax (BIT)/Corporate Income Tax (CIT)

BIT:
BIT is a non-corporate business tax. It is levied @ of 30% on net profit. BIT is payable by all unincorporated business entities holding a trade license or registration certificate issued by the Ministry of Economic Affairs (MoEA).

CIT:
CIT is a corporation tax. It is levied @ of 30% on net profit. CIT is payable by those entities registered under the Company’s Act of the Kingdom of Bhutan, 2000.

BIT/CIT Registration:
Every business or company must register with the Regional Revenue & Customs Office (RRCO) from where the trade license or permit is issued or wherever the Head office is located within 3 months from the date of obtaining such trade license or permit.

Tax Filing:
Every business or company must file the tax returns (FORM BIT-2 for BIT payers and FORM CIT-2 for CIT payers), on a self assessed basis to the RRCO of registration before 31st March following the end of the income year.

Taxpayer Number (TPN):
TPN is a system generated alpha numeric number allotted to the taxpayers by the RRCO at the time of registration. It is issued in order to identify all tax transactions relating to a particular tax entity. TPN must be quoted as a reference in all the correspondences with the department to identify the taxpayer.
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Personal Income Tax(PIT)

What is Personal Income Tax (PIT)?
PIT is a tax levied on the personal income of an individual from any or more of the six sources namely; salary income, rental income, dividend income, cash crop income, interest income and income from other sources i.e. hire of privately owned vehicles, plants, machinery and from intellectual property rights.

Who is liable to pay Personal Income Tax?
Bhutanese citizens,Residents and any other persons earning income in Bhutan from the six sources mentioned above shall be liable to pay PIT

Who should register for Personal Income Tax?
All citizens above 18 years of age and residents having personal income from one or more of the six sources during an income year shall register by filling the registration FORM PIT-1. The duly filled registration form shall be submitted to the RRCO where you prefer to be registered as the taxpayer. In case of married couples, both the spouses must choose the same RRCO for registration.

How many regional offices are there to choose the most convenient RRCO for registration?


Sl. No. RRCO Dzongkhags
1 Thimphu Thimphu,Punakha,Wangdue Phodrang and Gasa
2 Paro Paro and Haa
3 Phuentsholing Chhukha
4 Samtse Samtse
5 Gelephu Sarpang,Tsirang,Dagana,Zhemgang,Bumthang and Trongsa
6 Samdrup Jongkhar Samdrup Jongkhar and Pemagatshel
7 Mongar Trashigang, Lhuentse, Tashi Yangtse and Mongar

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What are the minimum conditions for Budgetary Fund Release?

For timely releases of funds, following minimum conditions are to be fulfilled by the Agencies:

Sufficient Budget provision: There should be sufficient budget provision against the activity for which fund release is requested. If the activity is new, budget incorporation process has to be completed before requesting for fund release.

Monthly Accounts: Monthly Account has to be submitted to the DPA by the Agencies within 15 days after completion of the month.

Donor Fund Balance: If the activity is donor funded, there should be donor fund balance with the RGoB. Any instances of delays in fund releases after fulfilling the minimum condition may be reported to the Director, DPA for necessary action. To view the Fund Release Guidelines.
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