Tel. # PABX – 335338/322319/333509//325601, Fax # 00975-2-323608 www.mof.gov.bt/drc

DRC/ITA-FI/2020/ 841 23rd December,2020

Notification

Subject: BIT Exemption for Small and Micro Businesses in Rural Areas As empowered under Section 5 of Fiscal Incentives Act 2017, the Department would like to notify that income tax exemption to Small and Micro sized businesses established and operating from outside the boundaries of four main Thromdes and the Dzongkhag Headquarter Throms has been extended until 31st December 2024. The following business categorization will be used to determine the size of the business established and operating from outside the boundaries of four main Thromdes and the Dzongkhag HeadquarterThroms.

SECTOR CATEGORY INVESTMENT RANGE TURNOVER RANGE

Trading Small Between Nu.1 - 3 million Less than Nu. 6million

Micro Less than 1 million Less than Nu. 1 million

Manufacturing

Small Between Nu. 1 - 10 million

Cottage Less than Nu. 1 million

Service

Small Between Nu.1- 5 million Less than Nu. 10 million

Micro Less than Nu. 1 million Less than Nu.1 million

Small and micro businesses holding a valid trade license/micro registration certificate with any activity specification shall be eligible for exemption but excluding the following activities:

● Tour Operators and ticketing agents; ● Construction and Logging businesses; ● Goods and Passenger Transport businesses; ● Consultancy and Hiring businesses; ● Cable and Export businesses; ● Supply of Sand, Boulder and Aggregates; ● Mining, Quarrying businesses; ● Stone Crushing and powdering businesses and; ● Mobile Sawmill.

In order to avail the exemption, micro businesses must be established outside the four main Thromdes and small businesses must be established outside the four Thromdes and the Dzongkhag Headquarter Throm. In cognizance of the current pandemic situation and health protocols put in place, tax officials from the RRCOs shall not visit businesses located in COVID High risk areas and tax exempted areas.

Tel. # PABX – 335338/322319/333509//325601, Fax # 00975-2-323608 www.mof.gov.bt/drc

However, the registered micro license holders and small business entities must file their tax return by submitting the required information using DRC’s BIT Estimated Tax App (BETA). Small and micro including exempted entities can obtain the tax clearance certificate online through BETA or through RAMIS. The taxpayer will be notified shortly on the launch date of the BETA App. For further details, please contact the Department of Revenue & Customs and its Regional Offices. Offtg. Director General Department of Revenue & Customs