Himalayan Consultancy

Himalayan Consultancy was born on 2017 with the mission to cater the national and international clients with a team of young Bhutanese. Since then, Himalayan Consultancy is engaged in the following areas unceasingly:

   1. Consulting and filing PIT
   2. Consulting, preparing and filing BIT/CIT
   3. Capitalizing of fixed assets
   4. Setting up the finance, accounts in any start-up company
   5. Consulting and auditing the company’s finance and administration performance
   6. Project proposal writing
   7. Budget preparation
   8. Laying out the Human Resources for the start-up company
   9. Pay fixation
   10. Interpret the Tax Act of Bhutan 2001 Interpret the TDS policy, Interpret the Tax Rules of Bhutan 2001, Company Act of Bhutan and FDI policy of Bhutan.
   11. Represent clients for audit and assessment with the concern authorities
   12. Due diligence and others at client’s requirement.

The team leader and founder has worked in the Finance Department since 2005. The firm has repeated clients as long as for ten years which has given us much confident. Maintaining the top data protection is firm’s top priority. Himalayan Consultancy believes to be sincere and strong bridge between the concern authorities and the clients.

BIT is a non-corporate business tax. It is levied @ of 30% on the net profit for the particular financial year. BIT is payable by all unincorporated business entities holding a trade license or registration certificate issued by the Ministry of Economic Affairs or any other competent authority.

When to file BIT?
Every business or company must file the tax return (BIT) on a self-assessed basis to the registered Regional Revenue Custom Office (RRCO) on or before 31st March following the end of the financial income year. The tax returns can be filed online or by visiting the nearest and registered RRCO in person.

CIT is a Corporate Income Tax. It is levied @ of 30% on net profit for state enterprise companies and @ of 25% on net profit for other companies. CIT is payable by those entities registered under the Company's Act of the Kingdom of Bhutan.

When to file CIT?
Every registered company must file the tax returns (CIT) on a self-assessed basis to the Regional Revenue & Customs Office (RRCO) of registration on or before 31st March following the end of the financial income year. The tax returns can be filed online or by visiting the RRCO, where you are registered as a taxpayer.

PIT is a tax levied on the personal income of an individual on an accrual basis from any or more of the following four sources:

(a) Employment Income
   1. monthly basic salary allowances
   2. fees & remuneration
   3. bonus
   4. commission
   5. leave encashment
   6. share of profits received by an employee
   7. consultancy income by a non-licensed consultant and
   8. other benefits received free or at a concessional rate.

(b) Rental Income: Income earned from real properties such as
   1. land(s)
   2. building(s)
   3. house(s)
   4. factory building(s)
   5. warehouse(s) and
   6. any other structures are generating income.

(c) Dividend Income
Income received from holding of shares in a company registered in Bhutan. However, dividend income does not include dividends received in bonus shares. Dividend income exceeding Nu.30,000 shall be subjected to TDS @ 10% on the whole amount. Dividend income shall be taxed on a receipt basis.

(d) Income from Interest Exempted from the income year 2016.
(e) Income from the sale of Cash Crop

(Exempted from the income year 2020)

(f) Income from Other Sources
   1. Income from other sources shall be taxed on an accrual basis, and its income is derived from any of the following sources:
   2. Income from the hire of privately owned vehicles, plants, and machinery but excluding trucks and taxis;
   3. Income from intellectual property rights such as copyrights, patent, trademark, design, model, or any artistic or scientific work.

Who are liable to pay PIT?
Bhutanese citizens, residents, and other persons above 18 years and earning gross income exceeding Nu. Three hundred thousand per annum in Bhutan from one or more of the four sources mentioned below shall be liable to pay PIT.

Seek Appointment.