Bhutan

No amount/estimate: April 2020, (i) Business Income Tax (BIT) and Corporate Income Tax (CIT) filing and tax payment for the Income Year 2019 will be deferred until 30 June 2020. 26 June 2020, targeted tax deferments will be provided over the next six to 12 months. On 17 February 2021, the government announced that the submission of tax returns for Income Year 2020 has been extended for (a) Personal Income Tax (PIT) - due on 31 March 2021 and (b) BIT and CIT - due on 30 April 2021; (ii) Deferred payment of sales tax and customs duty on essential items (March–June 2020); (iii) Waiver of payment of rent and other charges (April–June 2020) by tourism-related business entities leasing government properties.

No amount/estimate: 25 May 2020, The government will be refunding the 5% sales tax collected on telecom services collected on or after 16 January 2020.

No amount/estimate: 26 June 2020, rental waivers will be provided over the next six to 12 months.

April 2020, The National Resilience Fund has been approved and established. With a fund size amounting to about BTN30 billion, the resources will support the implementation of the following activities: (i) Grant of the Druk Gyalpo’s Relief Kidu to people who have been laid off or placed on reduced salaries to provide them immediate financial support. 30 April 2020, The Druk Gyalpo's Relief Kidu has granted BTN150 million as the first disbursement of the Relief Kidu to 13,006 people. On June 26, the government announced that the Druk Gyalpo Relief Kidu will continue from July to September 2020, however, with revision in amounts. The Relief Kidu has granted about BTN700 million between April and June 2020 to over 23,000 affected people; (ii) Interest waiver (50% of cost) - effective May 1, the Royal Monetary Authority announced that the interest waiver would also be extended to non-performing loan accounts for a period of three months (April–June 2020). The government will finance 50% of the total interest payment and the financial institutions offered to support the other 50%. On 11 June 2020, The government handed over the e-fund payment to financial service providers for loan interest waiver for the month of April. The government is financing 50% of the interest waiver amounting to BTN625.96 million (Total amount of the interest waiver for April 2020 stands at BTN1.2 billion). 26 June 2020, The government announced to further extend interest waiver for another nine months for loans availed as of 10 April 2020. Full interest waiver will be granted from July to September 2020, followed by a partial interest waiver (50%) from October 2020 to March 2021. The cost of interest payment for the nine months is estimated at BTN7.5 billion and will be fully granted from the National Resilience Fund; (iii) Fast-track the implementation of the 12th Five Year Plan and wherever possible frontload the investments. 26 June 2020, In order to support front-loading of capital investments, procurement guidelines will be simplified including preferential treatment for local goods.

(i) April 2020, Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD1.41 million) [update]; (ii) 7 April 2020, Regional Project Development Support for the South Asia Subregional Economic Cooperation Operational Plan, 2016–2025 (USD0.05 million); (iii) 4 May 2020, COVID-19 Active Response and Expenditure Support Program (USD20 million); (iv) 20 May 2020, Support to address Outbreak of Coronavirus Disease 2019 and Strengthen Health Systems Preparedness for Communicable Diseases in South Asia (USD0.10 million); (v) 16 July 2020, COVID-19 Emergency Response (USD2 million); (vi) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3) (USD0.21 million); (vii) 4 September 2020, Enhancing Gender Quality Results of South Asia COVID-19 Response (USD0.13 million); (viii) 7 September 2021, Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 4) (USD0.16 million) [update]; (ix) 22 September 2021, Fostering Regional Cooperation and Integration through Knowledge and Capacity Building of Trade and Supply Chain Finance Program Banks (USD 0.06 million); (x) 3 November 2021, Financial Market Development Program, Subprogram 3 (USD30 million) [update].

(i) April 2020, World Food Program donated two mobile storage units to help authorities preposition food to meet the needs of half the population for three months. The storage units has a capacity of 500 metric ton each and worth a total of USD45,000 (grant); (ii) 27 April 2020, the government and the World Bank signed a fast-track USD5 million COVID-19 project to help Bhutan prevent, detect, and respond to the pandemic and strengthen its public health preparedness (loan); (iii) 20 May 2020, The Government of Bhutan and the World Bank signed a USD14.8 million Development Policy Financing with Catastrophe Deferred Drawdown Option (Cat DDO) to help Bhutan undertake a comprehensive set of reforms to manage climate and disasters risks, including disease outbreaks (loan); (iv) May 2020, USAID provided USD1 million in total assistance for COVID-19 response, of which (a) USD500,000 in ESF to support micro, small and medium-sized enterprises to generate income for those affected by COVID-19; (b) USD500,000 in health assistance to strengthen diagnostic laboratory capabilities and clinical case-management, provide virtual training for health care providers and lab personnel, and design and produce risk-communications materials (grant); (v) 28 May 2020, United Nations (UN) COVID-19 Response and Recovery Fund, a UN inter-agency fund mechanism established by the UN Secretary-General to help support low and middle income program countries to respond to the pandemic and its impacts including an unprecedented socioeconomic shock, has allocated USD300,000 to Bhutan (grant); (vi) June 15, UN in Bhutan committed USD1.17 million to support the Government of Bhutan in addressing issues related to the COVID-19 pandemic. A part of the commitment comes from the Secretary General’s UN COVID-19 Response and Recovery Fund, with the aim to support responses to COVID-19 (see item v) and part of it is from the Joint Sustainable Development Goals (SDG) Fund, which will cover activities that will accelerate progress toward achieving the SDGs; (vii) 23 June 2020, The Government of Japan will provide a grant of JPY300 million (around USD2.8 million) to procure medical equipment to strengthen public health and medical systems in Bhutan; (viii) 23 June 2021, The World Bank approved a USD35 million Development Policy Credit to support Bhutan's efforts to alleviate the health, social and economic impact of COVID-19, and sustainable and inclusive growth in the aftermath of the pandemic.