Bhutan

{"ftc_utility":"medium","fbar_trigger_notes":"US persons with a Bhutanese bank account (Ngultrum or other currency) exceeding USD 10,000 in aggregate value at any point in the calendar year must file FinCEN 114 (FBAR). Opening a bank account in Bhutan as a foreigner is administratively difficult and generally requires a work permit or long-term resident status.","ftc_utility_reason":"Bhutan taxes residents on worldwide income at rates up to 25%. US persons who pay Bhutanese income tax on earned income can claim a Foreign Tax Credit against their US tax liability. The FTC is useful for those with Bhutanese-source income but of limited value for income sourced entirely from the US, which Bhutan may also attempt to tax on a residence basis.","presence_day_count_notes":"Bhutan maintains extremely restrictive immigration policies. Most foreigners enter only as tourists subject to a mandatory government daily fee (currently USD 100 per night as of 2024, reduced from the prior USD 250 Sustainable Development Fee). Long-term residence visas for non-South Asian nationals are rare and tightly controlled. Achieving 330 days in a 12-month period is practically very difficult for most US citizens. Those working in Bhutan under specific work permits (typically NGO, diplomatic, or project-based) may qualify, but the small expat population means IRS guidance specific to Bhutan is minimal.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":8400,"local_tax_rate_on_earned_income":0.25,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a Bhutan tax resident is taxable under the general progressive income tax rules. The effective rate depends on total taxable income; the top marginal rate is 25%.","tax_rate":0.25,"locally_taxed":true},"social_security":{"notes":"No US-Bhutan totalization agreement or tax treaty exists. US Social Security benefits received by a Bhutan resident are potentially taxable in Bhutan as foreign-source income under the progressive PIT schedule. No specific exemption exists.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Roth distributions have no treaty protection in Bhutan. Qualified Roth distributions that are tax-free in the US may still be treated as income under Bhutanese domestic law, though the practical application is highly uncertain given minimal US expat presence and limited Bhutanese administrative guidance on foreign retirement vehicles.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Bhutan and the United States have no bilateral tax treaty. US 401(k) and IRA distributions received by a Bhutan tax resident would be treated as foreign-source income and subject to Bhutanese personal income tax at progressive rates up to 25%. In practice, very few US retirees reside in Bhutan given strict immigration controls and mandatory daily fees for tourists.","tax_rate":0.25,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.25,"notes":"Bhutan does not have a standalone capital gains tax. Gains from asset disposals are generally treated as ordinary income and taxed at progressive personal income tax rates up to 25%. Real property transfers may be subject to separate land and property transaction levies under Bhutanese law.","details":{"tax_type":"Capital Gains Tax","country_name":"Bhutan","country_iso_code":"BTN","source_references":["Bhutan Department of Revenue and Customs - Income Tax Act of the Kingdom of Bhutan 2001 (as amended)","PwC Worldwide Tax Summaries (Bhutan not covered - knowledge base used)","KPMG Tax Profiles"],"last_verified_date":"2026-06-03","general_description":"No separate capital gains tax exists. Gains are folded into regular income and taxed under the progressive personal income tax schedule. The top marginal rate of 25% applies to taxable income above BTN 1,000,000. Real property transactions may attract property transfer taxes administered by the Department of Revenue and Customs.","corporate_capital_gains":{"rate":0.3,"tax_treatment":"Corporate capital gains are included in taxable business income and subject to the standard corporate income tax rate of 30%."},"individual_capital_gains":{"rate":0.25,"tax_treatment":"Individual capital gains are taxed as ordinary income under the progressive PIT schedule; top rate is 25% on income above BTN 1,000,000."}}}

{"notes":"Dividends paid to residents from Bhutanese companies are subject to a withholding tax of 10% under the Bhutan Income Tax Act. This withholding is generally treated as a final tax for individual recipients. No separate dividend imputation or exemption regime exists for most taxpayers.","rates":[{"rate":0.1,"type":"withholding","notes":"10% withholding on dividends from Bhutanese entities; treated as final tax for individuals. Bhutan has no tax treaty with the US, so no reduced rate applies for US persons."}]}