Bhutan

Bhutan legally permits cryptocurrency activities, though it is not recognized as legal tender. Cryptocurrencies are generally classified as "property" or "digital assets" for tax purposes under the framework of the Income Tax Act of Bhutan 2025. While the government itself participates in Bitcoin mining, trading through domestic banks is currently restricted. The Department of Revenue and Customs (DRC) is the primary authority responsible for administering tax laws in Bhutan, including those that apply to digital assets. The current tax landscape for cryptocurrencies relies on the existing general income tax framework. Individuals earning income from cryptocurrency are subject to progressive personal income tax rates ranging from 0% to 30%. There is no specific capital gains tax regime dedicated to cryptocurrencies. Instead, gains derived from the sale of crypto, when treated as property, are potentially taxable as investment or other income, also subject to the 0-30% progressive rates. There are no specified exemptions, thresholds, or distinct lower rates for long-term holdings. Corporate entities involved in crypto-related services face a standard corporate income tax rate of 22%. The current sales tax status for crypto transactions is unclear, but a 5% Goods and Services Tax (GST) is slated for implementation from 2026. Specific crypto activities generally follow the broader income tax principles. Staking rewards are potentially taxable as investment income upon receipt, subject to the 0-30% progressive rates. Income generated from cryptocurrency mining is typically treated as business or other income, with associated costs potentially being deductible. The tax treatment for decentralized finance (DeFi) activities and Non-Fungible Tokens (NFTs) remains unclear, but each interaction or transaction may potentially be taxable as investment or other income. Selling crypto for fiat currency or swapping crypto for other cryptocurrencies (including stablecoins) are both potentially taxable events, though the precise method for calculating gains in these scenarios is not clearly defined. Bhutan is undergoing tax reforms, with the Goods and Services Tax Act of Bhutan 2025 introducing a 5% GST from 2026, which may impact crypto transactions. Additionally, the planned Gelephu Mindfulness City, announced in January 2025, intends to include Bitcoin, Ethereum, and BNB in its reserves, indicating a cautious yet evolving approach to digital assets.