Foreign Direct Investment Policy 2019.

This Foreign Direct Investment (FDI) Policy 2019 is a cross-sectoral policy document at the national level. The FDI focus areas have been identified by the document, which include: i) Development of green and sustainable economy; ii) Promotion of socially responsible and ecologically friendly industries; iii) Promotion of culturally and spiritually sensitive industries; iv) Promotion of Brand Bhutan; v) Creation of a knowledge society; and vi) Diversification of economy for exports and import substitution.
The Royal Government shall allow FDI in both manufacturing and service sectors except for those as listed in the Negative List. These shall be governed by sector specific laws, policies, standards and procedures. The priority sector activities are listed in Schedules I & II. FDI businesses shall obtain approval for the proposed business activity and a business license prior to commencing project establishment and operations. In the application of relevant laws, rules and regulations in the country, foreign investment will be accorded the same treatment as accorded to similar domestic investment.
It is the Royal Government’s policy that Bhutanese nationals be trained and eventually employed at all levels within the business. In terms of taxation, the Sales Tax, Customs and Excise Act, 2000, Income Tax Act, 2001, Customs Act of Bhutan, 2017 and amendments thereto shall apply to all FDI businesses. The FDI companies shall be entitled to the incentives and exemptions as provided to similar domestic investments under the Fiscal Incentives Act of Bhutan, 2017 and amendments thereto unless specified otherwise in this Policy.
The Policy further sets up measures, inter alia, for: access to land or space for establishing FDI business, FDI business registration and approval, investment promotion, intellectual property rights, dispute settlement.