- Gelephu Mindfulness City (GMC), a Special Administrative Region, has retained its existing sales tax system during Bhutan’s nationwide GST rollout, operating independently from the national tax regime.
- GMC businesses are exempt from registering for GST with the Royal Government of Bhutan and must instead register with GMC to avoid GST on imports.
- Goods and services imported by GMC-registered businesses are zero-rated for GST to prevent double taxation, with strict monitoring to prevent misuse.
- GMC has established separate customs management systems at border check posts, treating movement of goods as import-export activities, and closely monitors compliance.
- Local agricultural products are not taxed, while wood-based products exported from GMC incur 5% GST and those imported from the rest of Bhutan face a 20% sales tax.
Source: kuenselonline.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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