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Labor Laws in Bhutan

  • Annual Leave: 21 days
  • Maternity Leave: 6 months
  • Public Holidays: 14
  • Workweek: 48 hours per week.

Income Tax in Bhutan

Bhutanese citizens, residents, and any other persons earning gross income exceeding Nu. 300,000 per annum in Bhutan from one or more of the four sources mentioned below shall be liable to pay PIT:

  • Salary Income
  • Rental Income
  • Dividend Income

Value Added Tax (VAT) in Bhutan

The Sales Tax rate is a tax charged to consumers based on the purchase price of certain goods and services. The current Sales Tax in Bhutan is 20%.

Social Security in Bhutan 

Bhutan has a provident fund system that encompasses old age benefits, disability benefits, and survivor benefits.

It covers persons employed for at least one year in firms with at least five employees. There is a special system for military personnel, civil servants, and employees of public corporations.

Employees must contribute at least 5% of monthly basic earnings. There are no minimum and maximum earnings used to calculate contributions.

Self-employed individuals are not required to make contributions. Employers must contribute at least 5% of monthly basic earnings.

Work Visas Bhutan

Here is work visa information for Bhutan, download our guide for an extensive breakdown.

Only skilled persons and technicians not available amongst Bhutanese will be approved for recruitment and employment by the Labor Recruitment Committee.

Permits to recruit foreign workers will not be approved if the category of workforce requested is locally available.

A foreigner who is between 20–50 years old only will be permitted employment and will be issued with a work permit.

A Work Permit will be issued for a maximum period of 12 months at a time and should be produced for inspection by the Labor and Immigration Inspectors.

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