BIT and CIT deadline further deferred for tourism and service sectors

The entertainment sector has been removed from the list since most of the entertainment centers are in operation, according to the Ministry of Finance

For tour operators, hotels, and airlines companies, the deadline for Business Income Tax (BIT) and Corporate Income Tax (CIT) filing for the income year 2019 has been further deferred until June 30 this year.

This is as per the fiscal measures phase III, where the filling of CIT and BIT have been extended for another six months from January to June this year. And those businesses have to apply for the deferment with the Regional Revenue and Customs Office (RRCO) where they are registered as a taxpayer.

However, the entertainment sector has been removed from the list since most of the entertainment centers are in operation, according to the Ministry of Finance (MoF).

According to the MoF, the pandemic continues to pose serious risks to the health and livelihood of the people and the economy.

โ€œIn keeping with the extension of the Druk Gyalpoโ€™s Relief Kidu (DGRK) in the form of Income Support and Loan Interest Payment Support till June 2022 and the monetary measures which also have been extended till June 2022, the fiscal measures are also extended till June 2022,โ€ a finance ministry official said.

The official said that in addition to the tourism and allied sectors, the fiscal measures phase II till December 2021 was extended to those in the entertainment sector on a case-by-case basis.

โ€œThe fiscal measures phase III is extended till June 2022 in keeping with the DGRK and the monetary measures given the pandemic,โ€ the official added.

Further, industries that are using high voltage and medium voltage are to pay demand charges on an actual consumption basis as against the mandatory minimum charges for the period starting January to June this year.

In addition, electricity and WIFI charges for hotels used as quarantine facilities are waived off and the monthly rent and other charges by tourism-related business entities leasing government property are also waived off till June this year.

Meanwhile, business enterprises and registered companies should file their tax returns on a self-assessed basis to the RRCO on March 31 every year. The tax returns can be either filed online or by visiting the RRCO.

An official from the RRCO said that the office was yet to receive a formal directive from the government as of December 31, 2020.

According to the MoF, the effectiveness of the fiscal measure will be reviewed by June this year based on the situation of the pandemic.

Kinley Yonten from Thimphu