How to Ensure Timely Tax Remittances and Tax Return Filings to the DRC

Timely tax remittances and accurate tax return filing are essential responsibilities for businesses operating in Bhutan. The Department of Revenue and Customs (DRC), under the Ministry of Finance, administers major tax obligations through systems such as RAMIS and BITS. Missing a payment or filing deadline can result in penalties, interest, additional administrative work, and reconciliation issues.

A structured payroll and tax compliance process can help businesses monitor obligations, prepare accurate returns, and make payments before deadlines.

1. Maintain a Tax Compliance Calendar

The first step is to maintain a calendar containing all applicable DRC filing and payment deadlines. Businesses should identify their obligations for Personal Income Tax (PIT), Business Income Tax (BIT), Corporate Income Tax (CIT), GST, TDS and other applicable taxes.

For 2026, the DRC website lists the main filing periods for PIT from 1 January to 28 February 2026, and BIT and CIT from 1 January to 31 March 2026. These dates should be verified against the latest DRC notifications applicable to the taxpayer and tax year.

Instead of waiting until the statutory deadline, businesses can establish internal deadlines several days earlier for data collection, review, approval and payment.

2. Track TDS Obligations Every Month

Businesses that are required to withhold tax should treat TDS as a recurring monthly compliance activity.

Under the Income Tax Act of Bhutan 2025, the DRC's February 2026 notification states that withholding agents must deposit withheld tax and file the withholding statement within 10 days after the end of each calendar month.

For example, an organisation can establish an internal workflow:

1. Calculate the applicable TDS.
2. Record the deduction against the relevant payment.
3. Reconcile the TDS amount with accounting records.
4. Prepare the TDS return.
5. Submit the return through RAMIS.
6. Generate the payment demand.
7. Complete the payment.
8. Save the payment and filing evidence.

The DRC's RAMIS process supports both ad hoc TDS filing and scheduled monthly salary TDS filing.

3. Reconcile Payroll Before Filing

Payroll information should be reconciled before submitting tax-related returns. Businesses should compare payroll records with employee payments, taxable income, deductions and TDS records.

A payroll reconciliation can include:

• Employee earnings
• Taxable and non-taxable components
• TDS deductions
• Employer records
• Payment records
• TDS certificates
• Accounting ledger balances

The DRC explains that TDS is a mechanism for collecting tax during the year and that deducted amounts can be adjusted against the taxpayer's final tax liability.

Using payroll software can reduce manual calculations and provide a consistent record for monthly and annual reconciliation.

4. Keep Tax Records Organised

Accurate documentation is important when preparing returns or responding to queries from the DRC. Businesses should maintain supporting records for income, expenses, payroll, TDS, GST transactions, tax payments and submitted returns.

A useful digital tax folder can contain:

• Filed tax returns
• TDS statements
• TDS certificates
• Payment vouchers
• Bank acknowledgements
• DRC notices
• Payroll reports
• Accounting reports
• Supporting invoices and documents

Records should be retained according to the applicable Bhutanese tax requirements.

5. Use the Correct DRC Online System

The DRC provides online processes for filing different tax obligations. For PIT, BIT and CIT returns, taxpayers can use RAMIS after registering with the DRC and obtaining valid login credentials. The DRC's filing instructions describe the process of selecting the relevant tax type, entering the required information and calculating the tax liability before submission.

For GST, registered businesses file returns through the Bhutan Integrated Taxation System (BITS). The DRC states that GST returns generally need to be filed within 30 days after the end of the applicable tax period, subject to the taxpayer's filing frequency.

Businesses should therefore avoid relying on a single generic tax calendar. Each tax type should have its own filing and payment schedule.

6. Complete Payment After Generating the Demand

Filing a return and paying the resulting tax are separate compliance steps that should both be monitored.

The DRC provides several payment methods, including payment at a Regional Revenue and Customs Office, direct bank deposit and internet banking through the applicable process. For bank and online payments, the DRC advises taxpayers to generate the payment voucher using the demand number.

Businesses should confirm that the payment has been successfully processed and reconciled rather than assuming that generating a voucher means the tax has been paid.

7. Set Internal Review and Approval Controls

A simple maker-checker process can reduce errors. One employee can prepare the return while another authorised person reviews the figures before submission.

The review should check:

• Correct tax period
• Correct taxpayer information
• Taxable income
• TDS calculations
• Supporting documents
• Previous payments or credits
• Final tax liability
• Payment details

This is particularly useful for organisations handling large payrolls or multiple tax obligations.

8. Monitor Penalties and Interest

Late filing and late payment can create additional costs. For example, the DRC's February 2026 notification states that failure to file a TDS return by the deadline can result in daily penalties, while late deposit of withheld tax can attract late-payment interest.

The Income Tax Act of Bhutan 2025 also provides a mechanism for taxpayers to apply for an extension of time to file. However, the Act states that an extension of filing time does not change the original payment date for tax due, and late-payment interest can continue from the original due date.

Therefore, businesses should not assume that obtaining additional filing time automatically postpones payment obligations.

9. Use Automated Tax and Payroll Workflows

Businesses can reduce compliance risk by integrating payroll, accounting and tax processes. Automated reminders can notify payroll and finance teams before TDS, GST and annual tax deadlines.

A good workflow can include:

Payroll processing → Tax calculation → TDS reconciliation → Return preparation → Review → DRC filing → Payment → Confirmation → Record keeping

This approach creates an audit trail and makes it easier to identify missing payments or unfiled returns.

10. Review DRC Notifications Regularly

Tax rules, filing procedures and administrative requirements can change. The DRC publishes notifications and updates on its website, including information relating to the Income Tax Act 2025, GST implementation, TDS obligations and tax prepayments.

Businesses should periodically check official DRC updates rather than relying solely on previous-year filing practices.

Conclusion

Ensuring timely tax remittances and tax return filings to the DRC requires more than remembering statutory deadlines. Businesses should maintain a tax calendar, reconcile payroll and accounting records, monitor TDS and GST obligations, complete payments promptly, retain supporting documents and establish internal review controls.

Using payroll and tax management software with automated reminders and accurate reporting can further simplify the process. Most importantly, businesses should verify current filing and payment requirements directly with the DRC because deadlines and procedures can change with new tax laws, rules and notifications.

Tax remittances and DRC filing preparation become easier with InnBuilt Payroll Software tracking payroll liabilities, due periods, deductions, and supporting reports. Compliance reminders and centralised records help teams avoid missed deadlines.