The agreement, signed on 12 May 2026, sets out taxing rights for cross-border income, addresses double taxation, and establishes withholding tax rates for dividends, interest, and royalties.
Bhutan’s National Council approved the income tax treaty with Singapore on 10 June 2026.
Signed on 12 May 2026, the agreement 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 following the exchange of instruments of ratification. Its provisions on withholding taxes will apply from 1 January of the year after it enters into force.
