Bhutan and Singapore Sign Double Taxation Agreement to Support Investment and Economic Cooperation
Bhutan and Singapore signed a Double Tax Avoidance Agreement on May 12, 2026, aimed at strengthening investment, trade, and economic cooperation while supporting Gelephu Mindfulness City’s international ambitions.
On 12 May 2026, Bhutan and Singapore have signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, marking a significant step in strengthening economic cooperation between the two countries.
The agreement was signed in Singapore on May 12 by Bhutan’s Finance Minister, Lekey Dorji, on behalf of the Royal Government of Bhutan and Gelephu Mindfulness City, and by Jeffrey Siow on behalf of the Government of Singapore.
Strengthening Bhutan’s International Economic Framework
The Double Tax Avoidance Agreement (DTAA) is Bhutan’s third bilateral tax treaty and reflects the country’s broader efforts to expand its international economic and tax cooperation framework.
The agreement is expected to provide greater clarity on the taxing rights of both jurisdictions for income generated through cross-border economic activity. By reducing the risk of double taxation, the DTAA aims to improve investor confidence, encourage trade and investment flows, and support deeper economic ties between Bhutan and Singapore.
The agreement also includes provisions for cooperation in tax matters, including the exchange of information and safeguards against treaty abuse in line with international standards.
Support for Gelephu Mindfulness City
The agreement is also seen as an important development for Gelephu Mindfulness City (GMC), as it continues building the institutional and regulatory framework needed to attract international investors, financial institutions, companies, family offices, and professional service providers.
Bhutan has positioned GMC as a long-term economic and innovation hub aimed at strengthening regional connectivity and sustainable development opportunities in South Asia.
The Governor of GMC, Dasho Dr. Lotay Tshering, said the signing of the DTAA is an important milestone for Gelephu Mindfulness City, SAR. Recognition from international jurisdictions such as Singapore signals GMC’s progress toward becoming an economic hub for South Asia.
Bhutan and Singapore Deepen Economic Ties
Finance Minister Lekey Dorji welcomed the agreement and expressed appreciation to Singapore for its cooperation and trust.
The minister said that Singapore, as a small country with economic weight and credibility far beyond its size, is an important partner for Bhutan. He added that the Agreement would support the Royal vision for Gelephu Mindfulness City and the Royal Government’s broader ambition for Bhutan’s long-term economic development.
The DTAA is expected to strengthen the legal and fiscal foundation for future cross-border investment and long-term economic partnership between Bhutan and Singapore.
View the full Double Tax Avoidance Agreement here.
