Bhutan vs Laos
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ง๐น Bhutan โ Dzongkhag & Thromde Taxes
Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.
๐ฑ๐ฆ Laos โ Provincial & District Taxes
Laos's 18 provinces and Vientiane Capital have provincial tax departments that administer national taxes locally, with some authority over land and building taxes. The Tax Department under the Ministry of Finance sets all national rates. Provincial governments retain a share of collected taxes for local expenditure. Laos has significant hydropower, mining (potash, gold), and tourism revenues. The country has faced severe debt difficulties since 2022 and is in debt restructuring with Chinese creditors. A VAT was introduced in 2010.
Bhutan vs Laos: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ง๐น Bhutan has a higher top income tax rate (0โ25% vs 0โ24%). ๐ฑ๐ฆ Laos is more favourable for high earners.
๐ VAT/Sales Tax: Laos has a higher consumption tax (0% vs 10%).
๐ข Corporate Tax: ๐ฑ๐ฆ Laos offers a lower corporate rate (20% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐น Bhutan taxes investment gains at a lower rate (0% vs 10%), benefiting investors.