Bhutan and Singapore have signed a landmark Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, marking a major step forward in strengthening bilateral economic cooperation and investment ties.
The agreement was signed in Singapore by Bhutan’s Finance Minister Lekey Dorji on behalf of the Royal Government of Bhutan and Gelephu Mindfulness City, while Jeffrey Siow signed on behalf of the Government of Singapore.
The Double Tax Avoidance Agreement (DTAA) is Bhutan’s third bilateral tax treaty and forms part of the country’s broader push to expand its international economic and taxation cooperation framework.
Officials said the agreement would provide greater clarity on taxing rights for income generated through cross-border economic activities. By reducing the burden of double taxation, the DTAA is expected to improve investor confidence, facilitate trade and investment flows, and deepen economic engagement between the two nations.
The treaty also includes provisions for cooperation in tax administration, including the exchange of information and safeguards against treaty abuse in line with international standards.
The agreement is viewed as a significant development for Gelephu Mindfulness City (GMC), Bhutan’s ambitious economic and innovation hub project aimed at attracting international investors, financial institutions, companies, family offices, and professional service providers.
Bhutan has positioned GMC as a long-term regional hub designed to strengthen connectivity and promote sustainable development opportunities across South Asia.
Governor of GMC, Lotay Tshering, described the signing as an important milestone for the city’s development, saying recognition from international jurisdictions such as Singapore reflects GMC’s growing credibility and progress toward becoming a major economic hub in the region.
Finance Minister Lekey Dorji welcomed the agreement and thanked Singapore for its cooperation and trust. He noted that Singapore’s global economic reputation and credibility make it a valuable partner for Bhutan’s long-term development goals.
According to the minister, the agreement will support Bhutan’s broader economic vision, particularly the development of Gelephu Mindfulness City, while laying a stronger legal and fiscal foundation for future cross-border investments and long-term economic partnership between the two countries.
