Founders Company Tax Exemption Applications: Legal Advisory

If your business would be new to the Gelephu Mindfulness City, the Income Tax Act 2025 offers a full tax exemption: the designated officer of the Gelephu Mindfulness City Special Administrative Region (GMC) can exempt the income of an approved founders company from a qualifying business for up to 15 years. The window is fixed, because no company can be approved after 31 December 2030, and the exemption only ever covers the business named in the letter of approval.

Assess whether your industry can be approved as a founders industry: one "not being carried on in GMC on a scale adequate to the economic needs of GMC" with favourable development prospects.

Define the qualifying business precisely, because the exemption attaches to that business alone.

Advise on the written application in the prescribed form and particulars, with the economic case the designated officer needs in order to find approval "expedient in the public interest".

Negotiate the commencement date and period of exemption in the letter of approval, and later amendments or extensions.

Advise on separate accounts for any non-qualifying trade and the deemed capital allowance rule.

Advise on the interaction with strategic and development company status, and on compliance to avoid revocation and additional assessments.

Founders bringing a business line new to GMC in one of its priority industries, from green energy and agri-tech to digital assets, health and education. Groups establishing a first-of-kind operation in GMC before the 2030 cut-off. Investors comparing a full founders company exemption with the concessionary rate for a strategic and development company. Companies already operating in GMC in an industry that may qualify.