Nu 9.11bn collected in CIT & BIT

An amount of more than Nu 9.11bn was collected as Corporate Income Tax (CIT) and Business Income Tax (BIT) from 90% of tax filer as of September this year.

Of the total, more than Nu 8.1bn was collected from CIT and around Nu 953mn from BIT.

Though the tax filing date for CIT and BIT is till March every year, due to the pandemic the government has extended the filing date till June.

Officiating Director General of Department of Revenue and Custom (DRC) Wangdi Drugyel said that government has further extended the tax filing date for the tourism sector till December this year and for businesses not related to the tourism sector the date is extended to September this year.

As per records with DRC, there are around 450 CIT tax filers, 4,490 BIT account filers and 35,658 estimated filers.

However, Officiating DG said that figures are subject to change since there might be new business entities and some cancelling.

Till September this year, 445 companies have filed CIT and 4,049 BIT account filers have filed the tax and 31,604 business entities have filed their tax.

There are two types of BIT filer; those that maintain accounts called accounts filer and some shops that pay a lump sum amount called estimated tax filer.

This means as of September this year, more than 90% of BIT and CIT filers have filed their tax.

As of September around 4,500 entities have not reported to file the tax and maximum of them are BIT filers.

He said that as per the rule, tax filers have to make the payment when they file the tax, however due to pandemic, they have been categorized as exceptional case tax filers and can make the payment later.

“The amount collected from the tax in 2018 and 2019 will be same. There will be no changes in liabilities,” said officiating DG.

He said they are worried about whether the government will get the tax amount from tax payers because of the pandemic. “However we are also weighing the situation.”

“As long as they are willing to pay the tax amount we are giving some consideration for fines and penalty,” he said.

In 2018, the total tax amount collected from CIT was around Nu 9.11bn and total tax amount collected from BIT was around Nu 1.42bn.

Dechen Dolker from Thimphu