Tax Compliance and Challenges Faced by the Taxpayers in Bhutan

Author(s)	Ms. Yeshi Pelden, Mr. Thukten, Ms. Sonam Dema, Ms. Samten Tshomo
Country	Bhutan
Abstract	This study investigates the level of tax compliance and challenges faced by individual taxpayers in Bhutan. The findings indicate a high level of tax compliance, with 92.1% of respondent reporting timely fulfillment of their tax obligation. Among the examined variables - tax awareness, tax education, tax complexity, and digital complexity - only tax awareness was found to significantly influence compliance behavior, indicating that greater awareness leads to a higher compliance level. The key challenges identified include high tax rates, frequent digital system failures, delays in processing tax returns, and difficulties in adapting to changes in procedure. The study recommends enhancing digital infrastructure, strengthening tax education, improving system reliability, and reconsidering the tax rate to support more effective and equitable compliance.
Keywords	Tax compliance, Tax awareness, Tax education, Digital complexity, tax challenges, Bhuan
Field	Business Administration
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-24
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.58769

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