Presumptive tax calculator Bhutan

A small resident business can skip profit accounts. Schedule 2 of the Income Tax Act of Bhutan 2025 treats 15% of total business income as the taxable amount, then applies the personal bands.

The door closes at Nu. 5,000,000 of business income a year. It has been open since January 1, 2026.

How it's calculated

Multiply your business income for the year by 15%.
Apply the personal bands to that amount: nil up to Nu. 300,000, then 5% up to Nu. 500,000, 10% up to Nu. 750,000.
No expenses come off. The 15% takes their place.

An example

Tshering runs a shop in Paro with Nu. 3,000,000 of sales in the year. The taxable amount is 15 % of that, Nu. 450,000. The first Nu. 300,000 is free and the remaining Nu. 150,000 pays 5 %, so the tax is Nu. 7,500. That is 0.25 % of sales.

Frequently asked questions

Who can use presumptive taxation in Bhutan?

A resident individual whose taxable income comes only from a business, wholly inside Bhutan, not above Nu. 5,000,000 a year, not registered for GST, and never before taxed under the Act on another basis (Schedule 2, paragraph 1).

Who is left out?

The notification of 16 December 2025 from the Department of Revenue and Customs adds two more conditions: the individual holds no professional qualification, and the business is not a partnership.

What if I have a salary too?

Then the first condition fails, because your income is not only from a business. You file on actual profit and add it to your salary.

Key terms

Presumptive taxation: A simple method that assumes a fixed share of what a business takes in is its income.
GST registered: A business on the DRC's register that charges Goods and Services Tax. It cannot use this method.
Turnover: All that a business takes in from sales in a year, before costs.