Tax filing deadline extended by a month

Filing after the extended date shall attract late filing penalty of Nu 100 per day and 24% penal interest on tax payable

In view of challenges faced by the taxpayers due to the Covid-19 situation, the Department of Revenue and Customs (DRC) has extended the due date for the submission of tax returns for Personal Income Tax (PIT), Business Income Tax (BIT), and Corporate Income Tax (CIT) for Income Year 2020.

In a notification issued by the DRC on Wednesday, PIT filing due date has been extended till March 31, 2021, and CIT and BIT filing due date has been extended till April 30, 2021.

The DRC also notifies the taxpayers that filing after the due date shall attract late filing penalty of Nu 100 per day and 24% penal interest on tax payable.

“Tax filing after three months from the due date shall attract non-filing penalty as per Section 31, Chapter 5, General Provisions of the Income Tax Act, 2001,” states the notification.

The DRC also urges taxpayers to file their tax return online by logging into RAMIS with their user id and password. For more information on RAMIS, taxpayers have been urged to visit DRC’s website. And taxpayers who don’t remember their password have been urged to rest the password using the ‘forgot password’ option.

According to the notification, the new password would be then sent to the email registered with RAMIS. For those without registered email in RAMIS of for any clarification, they have been asked to please contact the DRC information center at toll free number 3999 or email at drcinformationcenter@mof.gov.bt .

Meanwhile, 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 such as Salary Income, Rental Income, Dividend Income, and Income from Other Sources.

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 above shall be liable to pay PIT.

All citizens above 18 years of age and residents having personal income from one or more of the four sources during an income year shall register either online or by submitting the registration FORM PIT-1.

And coming to BIT, it is a non-corporate business tax levied at of 30% 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 or any other competent authority.

CIT on the other hand is levied at of 30% on net profit for state enterprise companies and at 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, 2000.

Yenten Thinley from Thimphu