Bhutan and Singapore have taken a major step toward deepening economic cooperation with the signing of a Double Taxation Avoidance Agreement (DTAA) aimed at boosting investor confidence and strengthening cross-border business ties. The agreement was signed in Singapore by Bhutan’s Finance Minister Lekey Dorji and Singapore’s Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow.
The treaty is designed to prevent the double taxation of income earned through cross-border economic activities while also introducing measures to curb fiscal evasion. Officials from both countries described the agreement as a significant development that will provide greater clarity and certainty for businesses and investors operating between the two jurisdictions.
The agreement is expected to play a particularly important role in the development of Gelephu Mindfulness City (GMC), Bhutan’s ambitious economic and investment hub project. GMC officials said the treaty would help create a stronger institutional and financial framework capable of attracting international investors, family offices, financial institutions, and professional service providers.
In addition to promoting trade and investment, the DTAA establishes mechanisms for cooperation on tax matters, including the exchange of information and safeguards against treaty abuse in line with international standards.
This marks Bhutan’s third bilateral tax treaty and reflects the country’s broader effort to expand its international economic partnerships and improve the environment for long-term investment.
GMC Governor Dasho Dr Lotay Tshering said the signing demonstrates the growing relationship between Singapore and GMC, adding that Singapore’s recognition of the project is an encouraging sign of its emergence as a future economic hub in South Asia.
Finance Minister Lekey Dorji welcomed the agreement, describing Singapore as a trusted and influential partner. He said the treaty would support Bhutan’s long-term economic vision and contribute to the success of Gelephu Mindfulness City as a driver of sustainable growth.
