Before you start

An identification number issued for tax purposes
Employment income in Bhutan
Records of any rental, dividend or other income arising in Bhutan

Step-by-step

1
Obtain your tax identification
Bhutan uses distinct identifiers: a personal number used across government systems for individuals, and a TPN for businesses and other taxable entities. Your employer will normally establish what you need during onboarding.
Via employerWho: You and your employer
2
Confirm whether you are tax resident
Residency generally turns on physical presence, commonly assessed at 183 days or more in a calendar year. It determines whether you are taxed as a resident.
OnlineWho: You
3
Have tax deducted at source
Salary income is withheld by the employer under the Personal Income Tax rules. Check your payslip reflects the correct treatment from the first month.
Via employerWho: Your employer
4
Account for social security
Contributions are mandatory for employees including expatriates, commonly cited at 5% of salary. Confirm the current rate and whether your engagement is in scope.
Via employerWho: You and your employer
5
File your annual return
Returns are filed with the Department of Revenue and Customs. If you have rental, dividend or other Bhutanese income alongside salary, all four defined sources aggregate toward the threshold.
OnlineWho: YouAnnually

Documents you’ll need

Passport and permit
Employment contract and payslips
Tax identification issued to you
Records of any non-salary Bhutanese income

Things most newcomers don’t know

The threshold aggregates four sources, not just your salary.

Salary, rental, dividend and other income all count toward the Nu. 300,000 threshold. Renting out a flat in Thimphu alongside a salary can move you across a band you thought you were under.

Source: Department of Revenue and Customs — who is liable to pay PIT

Social security applies to expatriates, not just citizens.

It's a real deduction from a foreign salary and is easy to miss when comparing an offer against a home-country package. Ask for a net figure rather than gross.

Source: Employer-of-record guidance; confirm the current rate with your employer

The published top rate is genuinely unclear from public sources.

Reputable secondary sources give different ceilings, and Bhutan does not publish an easily navigable consolidated rate table. For anything financially material, get the band structure confirmed by the Department directly rather than trusting an aggregator.

Source: Conflicting secondary sources, July 2026

Check how your home country treats Bhutanese income.

Bhutan has a limited tax treaty network. Depending on your nationality you may face home-country obligations with little or no relief, which can change the economics of an offer substantially.

Source: community-reported; take professional advice for your nationality

Common mistakes to avoid

Quoting a top marginal rate from an aggregator — public sources disagree.
Forgetting that rental and dividend income count toward the same threshold as salary.
Comparing a gross Bhutanese offer against a net home-country salary.
Assuming a tax treaty exists between Bhutan and your home country.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.