Large and medium business and corporate units must deposit their tax advance hereon.
The Department of Revenue and Customs has notified that all large and medium business or corporate units must deposit their advance tax by August 31.
According to the Ministry of Finance, based on the tax paid in the previous year, large and medium business and corporate units are encouraged to pay advance tax to ease the burden of paying taxes in one way and to spread the burden of paying taxes bi-annually.
An official from the ministry said that advance tax is levied to ease the burden of paying taxes in one go, based on the tax paid in the previous year.
“If there was loss in the previous year, there is no need of advance tax this year. However, entities will have to file tax returns by August 31 of each year, irrespective of loss or profit,” said the officials from ministry of finance.
The official mentioned that if the actual tax liability at the end of the year is less than the tax paid through the advance tax, that tax entity will get tax refund by that difference.
However, he added that there is no percentage or part to the advance tax payment. It is all based on the tax actually paid in the previous year. This is done to ease the burden of tax payment at one go.
Business Income Tax (BIT) is for individual base business entities while Corporate Income tax (CIT) is for large companies registered under the Companies Act of Kingdom of Bhutan.
During the financial year 2017-18 gross revenue collected from BIT was Nu 1.5bn and from CIT Nu 10.59bn.
Dechen Dolkar from Thimphu