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8.2.1. Corporate/Profit Taxes

A non-resident entity having a permanent establishment in Bhutan is subject to tax on income earned by such permanent establishment in Bhutan. The permanent establishment is treated  as a separate entity and taxed as a resident entity at the standard corporate income tax rate of 25% (previously 30% until 31 December 2019) or at the business income tax rate of 30%. There is no branch tax on the (deemed) remittance of after-tax profits to the foreign head office.