Many have not filed their taxes
Business Income Tax (BIT) and Corporate Income Tax (CIT) filing for 2019 has been deferred until June 30.
As if they knew it was coming, not many paid the CIT or the BIT although the deadline to file the tax ends on March 31, two working days from today.
Those filing CIT and BIT have been asked to refer the guidelines at www.mof.gov.bt, the Department of Revenue and Customs (DRC) announced yesterday.
Out of the total of 426 registered CIT payers, only 86 had filed tax returns as of March 26, according to records with the revenue and customs department.
The number of those who filed their tax returns is smaller in the business category.
There are a total of 40,267 registered BIT payers (both those that submit accounts and that do not submit accounts). Out of the total only 21,342 have filed their tax returns.
Officials however clarified that some of the enterprises may not have operated.
The government yesterday announced that in view of the novel coronavirus (Covid-19) pandemic.
Prime Minister Dr Lotay Tshering announced this yesterday at the meet the press. “It’s fine if people do not file by the end of the regular deadline,” he said.
Business enterprises and registered companies file their tax returns on a self-assessed basis to the Regional Revenue and Customs Office (RCO) of registration with March 31 of every year. The tax returns can be either filed online or by visiting the RRCO.
An official from the department said that the department was yet to receive a formal directive from the government as of yesterday. He said that unlike in the past, he noticed late filling this year.
Corporations are levied a CIT of 30 percent on net profit. CIT is payable by those entities registered under the Company’s Act of the Kingdom of Bhutan.
BIT is a non-corporate business tax. It is also levied at the rate of 30 percent on net profit.
BIT is payable by all unincorporated business entities holding a trade license or registration certificate issued by the Ministry of Economic Affairs.