Bhutan’s National Assembly approved the income tax treaty with Singapore on 2 June 2026, setting out withholding tax rates of 0%–5% for dividends, 5% for interest and royalties, and clarifying taxing rights on cross-border income. The treaty will enter into force upon exchange of instruments of ratification.
Bhutan’s National Assembly (lower house of parliament) has confirmed on 2 June 2026 that it has approved the income tax treaty with Singapore.
The treaty was signed on 12 May 2026.
The treaty clarifies the taxing rights of both countries on income arising from cross-border business activities, and addresses the double taxation of such income. This will lower barriers to cross-border investment and trade and economic flows between both countries.
Withholding tax rates for dividends are subject to a 0% rate where the beneficial owner is a company; otherwise, a 5% rate applies, with a separate general exemption provided for dividends paid to or from GMC. Interest is subject to a 5% rate, with a separate general exemption provided for interest paid to or from GMC. Royalties are subject to a 5% rate.
The treaty will enter into force upon the exchange of instruments of ratification. It will apply to withholding taxes from 1 January of the year following its entry into force and to other taxes from 1 January of the second year following its entry into force.
