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Bhutan vs Nepal
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ง๐Ÿ‡น Bhutan
vs
๐Ÿ‡ณ๐Ÿ‡ต Nepal
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“25%
25% top; crypto mining revenues adding to national income
No change
1โ€“36%
36% top; remittance economy significant
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0%
No VAT; GST consideration ongoing
No change
13%
13% stable
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30% CIT; digital economy and hydropower growing
No change
25%
25%; Pillar Two for qualifying MNCs
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT
No change
5โ€“10%
5%/10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~10%
NPPF; pension adequacy improving
No change
~31%
SSF and EPF; coverage expanding
No change
State, Regional & Local Taxes

๐Ÿ‡ง๐Ÿ‡น 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.

๐Ÿ‡ณ๐Ÿ‡ต Nepal โ€” Province & Local Government Taxes

Nepal's 7 provinces and 753 local governments (metropolitan, sub-metropolitan, municipal, and rural municipal) have significant constitutional taxing powers under the 2015 federal constitution. Local governments levy entertainment tax, advertisement tax, house/land registration tax, and tourism fees. Provinces can levy vehicle tax and some business taxes. The Inland Revenue Department (IRD) administers federal taxes. Nepal's tax system has evolved significantly under federalism since 2017.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Bhutan vs Nepal: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ณ๐Ÿ‡ต Nepal has a higher top income tax rate (0โ€“25% vs 1โ€“36%). ๐Ÿ‡ง๐Ÿ‡น Bhutan is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Nepal has a higher consumption tax (0% vs 13%).

๐Ÿข Corporate Tax: ๐Ÿ‡ณ๐Ÿ‡ต Nepal offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ง๐Ÿ‡น Bhutan taxes investment gains at a lower rate (0% vs 10%), benefiting investors.

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