Third Reading of the Income Tax Bill of Bhutan, 2025
In the Third Reading of the Income Tax Bill of Bhutan 2025 held today, the Member from Monggar constituency, Member of the Economic and Finance Committee, presented the Committee’s review report on the Bill.
The Member reported that the Committee’s review focused on five key areas: the merger of business income with personal income tax, rationalization of tax rates, simplification of tax filing for small businesses, introduction of digital economy taxation, and strengthening of anti-avoidance provisions. Emphasizing transparency, inclusivity, and economic growth, the revised Bill proposes a unified tax framework that integrates multiple income streams under one system and introduces final withholding taxes on dividends and interest.
The House deliberated on all 726 sections of the Income Tax Bill of Bhutan 2025, which comprises 24 Chapters. During the deliberation, the House directed the Committee to review the provisions related to Review Board and Appeals in line with those adopted in the Goods and Services Tax (Amendment) Bill of Bhutan 2025. The House also directed the Committee to review and report back to the House on Chapter 23 (Taxable Income) concerning winnings from lotteries, betting, or gambling; and Rates of Withholding Tax in Schedule 1.
The House will continue discussion on the Schedules tomorrow before it is put to vote for adoption of the Bill.
