Bhutan or Tonga: which taxes less?

Both tax systems side by side, headline rates and the gap between them.

Level pegging: Bhutan and Tonga weigh about the same on the taxpayer.

Tonga

5.3/10

99th of 217

Tax Bhutan Tonga Gap
Corporate income tax headline rate 25% 25% Same rate
Personal income tax top bracket 0% to 30% 0% to 25% +5.0 points
VAT standard rate 10% 15% −5.0 points

Detailed schedules

Corporate income tax

Bhutan

Common law companies 25%
Public enterprises 30%

Tonga

n/a

Personal income tax

Bhutan

Up to 300,000 Nu About 3,300 EUR gross annual revenue 0%
300,001 to 400,000 Nu 10%
400,001 to 650,000 Nu 15%
650,001 to 1,000,000 Nu 20%
1,000,001 to 1,500,000 Nu 25%
Over 1,500,000 Nu 30%
Surtax On tax due, when it reaches 1,000,000 Nu 10%

Tonga

Up to 12,000 TOP Scale effective since July 1, 2021 0%
12,001 to 30,000 TOP 10%
30,001 to 50,000 TOP 15%
50,001 to 70,000 TOP 20%
Over 70,000 TOP 25%
See the Bhutan page See the Tonga page