What Are the Mandatory Deductions for Bhutanese Employees under DRC Guidelines?

Managing payroll in Bhutan requires employers to correctly identify the deductions that must be made from an employee’s salary and the amounts that must be remitted to the relevant authorities or funds. For 2026, the Department of Revenue and Customs (DRC) administers personal income tax and employer withholding requirements under the Income Tax Act of Bhutan 2025, which came into effect on 1 January 2026.