Personal Income Tax (PIT) PIT is a tax levied on the personal income of an individual on an accrual basis from any or more of the following four sources:

(a) Employment Income

  • monthly basic salary allowances
  • fees & remuneration
  • bonus
  • commission
  • leave encashment
  • share of profits received by an employee
  • consultancy income by an non licensed consultant and
  • other benefits received free or at a concessional rate.


(b) Rental Income Income earned from real properties such as:

  • land(s)
  • building(s)
  • house(s)
  • factory building(s)
  • warehouse(s) and
  • any other structures generating income.


(c) Dividend Income

  • Income received from holding of shares in a company registered in Bhutan. However, dividend income does not include dividends received in the form of bonus shares. Dividend income exceeding Nu.30,000 shall be subjected to TDS @ 10% on the whole amount. Dividend income shall be taxed on receipt basis.


(d) Income from Interest

  • Exempted from income year 2016.


(e) Income from sale of Cash Crop

  • Exempted from income year 2020.


(f) Income from Other Sources

Income from other sources shall be taxed on accrual basis and it's income is derived from any of the following sources:

  1. Income from hire of privately owned vehicles, plants and machinery but exluding trucks and taxis;
  2. Income from intellectual property rights such as copy rights, patent, trademark, design, model or any artistic work or scientific work.


Specific deductions/exemptions Income Sources Specific Deductions/Exemptions

1. Salary Income            : Less PF and GIS contributions.

2. Rental Income            : Less 20% on repairs and maintenance,

                                    interest payments, urban taxes and insurance premium.

3. Dividend Income         : Less Nu. 30,000 specific exemption and

                                     interest on loans for shareholding.

4. Other Income             : Less 30% on Gross Other Income.

General Deductions In addition, the following general deductions are given

  1. Education allowance up to a max of Nu. 350,000 per child.
  2. Life insurance premium.
  3. Self education allowance up to a max Nu. 350,000 per taxpayer.
  4. Donations up to a max of 5% of the total adjusted gross income.
  5. Sponsored children education expense up to max of Nu. 350,000 per child.


PIT Tax Rates: 
Sl No. :Income SlabTax Rate
1Up to Nu. 300,0000%
2Nu.300,001 to Nu. 400,00010%
3Nu. 400,001 to Nu. 650,00015%
4Nu. 650,001 to Nu. 1,000,00020%
5Nu. 1,000,001 to Nu. 1,500,00025%
6Nu. 1,500,001 and up30%
Surcharge at the rate of 10% shall be levied on (PIT)Personal Income Tax, if the annual Personal Income Tax is equal to or more than Nu. 1,000,000.
Property Tax System available on Property Tax Calculator available on