Gelephu Mindfulness City (GMC), Bhutan’s ambitious Special Administrative Region, has introduced tax incentives for participants in national service programmes under its new Income Tax Act 2025. This move reinforces the city’s unique blend of economic innovation and Bhutanese values of service, volunteerism, and Gross National Happiness.
The incentive offers a $100 tax deduction (approximately Nu 9,500) to GMC tax residents who engage in national service initiatives such as Gyalsung, DeSuung, and Pelsung. Eligibility is simple: participants must be Bhutanese citizens residing or working in GMC for at least 183 days a year. Tax calculations in the city are conducted in US dollars, aligning with its international outlook.
Tan Bin Eng, Managing Director of Tax, Immigration and Corporate Registry at the Gelephu Mindfulness City Authority, explained the rationale: “The spirit of giving and volunteerism, deeply embedded in Bhutanese people, will be core to the success of GMC as it develops. The tax relief is hence an appreciation that GMC wants to provide its tax residents who have taken the time and effort to give back through such programmes.”
This policy reflects GMC’s broader vision as a mindfulness-driven economic hub. As a SAR operating under a “One Country, Two Systems” model until a full merger by 2065, the city features competitive corporate taxes, zero capital gains tax, and other investor-friendly measures. Yet, it deliberately integrates national service to ensure economic growth is rooted in civic duty and community contribution.
By rewarding service, GMC aims to multiply human capacity and foster loyalty among residents. Officials view the deduction as a strategic fiscal tool that could eventually extend nationwide. As the city embarks on its 20-year development journey, this initiative highlights how mindfulness and mindful capitalism can coexist—building not just infrastructure, but a society grounded in shared responsibility and long-term prosperity.
