Dorji Choden

As the tax season kicks off, the Department of Revenue and Customs (DRC) is taking steps to make tax filing more accessible and efficient for taxpayers.

The DRC has certified 92 tax intermediaries (TIs) as part of a pilot project. Of this, 41 certified agents are currently active.

These tax intermediaries will assist taxpayers with filing income tax returns, online registrations, and obtaining Tax Clearance Certificates.

Currently, 41 of the certified agents are active.

“The goal of this initiative is to provide quicker, more reliable, and efficient services to taxpayers while strengthening the capacity of TIs,” said the regional director of the Regional Revenue and Customs Office (RRCO) in Thimphu Ugyen Norbu. “This initiative allows taxpayers to file their taxes through trained intermediaries, reducing the need for in-person visits to the RRCO office.”

Walk-in tax payment service at DRC is no longer available. Instead, taxpayers can file taxes using the BIT Estimated Tax App (BETA), which was introduced during the COVID-19 pandemic. The app enables TIs to file tax returns on behalf of clients, after which tax officials verify the submissions.

Any discrepancies found in the submissions will lead to rejection, ensuring greater transparency and accountability in the process.

“This is a pilot project which will be monitored and if it is successful then the DRC will continue this at eight RRCO offices in the next tax season,” a DRC official added.

The initiative also aims to address long-standing conflicts of interest in tax administration. In Bhutan, taxpayers have traditionally relied on tax officials to handle filings. However, these same officials also assess the returns, creating potential conflicts of interest. “By delegating the filing process to independent TIs, the project allows tax officials to focus solely on assessments,” said the DRC official.

To ensure affordability, the DRC capped the TI service fee at Nu 100. However, after consultations with the intermediaries it was finalised at Nu 150.

The TIs, selected based on their financial background and examination results, underwent a week-long training programme organised by the DRC and the Financial Institutional Training Institute.

At present, TIs are located in Thimphu, Samdrupjongkhar, Nganglam, Paro, Mongar, Bumthang, Samtse, Zhemgang Pangbang, Phuentsholing, and Tsirang.

The tax filing season is now underway, with the deadline for Personal Income Tax set for February 28, and Business/Corporate Income Tax filings due by March 31.