Anyone committing capital to a GMC holding, treasury or incentive structure wants to know how the Comptroller will treat it before the money moves. The Income Tax Act 2025 provides for binding advance rulings from the GMC Comptroller under its advance ruling provision and its Seventh Schedule. Basnet Law Pte. Ltd. is the first law firm incorporated in GMC. We prepare and lodge ruling applications. This page explains what a ruling does, what it costs and how we prepare one.
How we help
- Confirm whether the question is one the Comptroller can rule on, since the Seventh Schedule excludes rulings on penalties, the correctness of returns, prosecutions and debt recovery, and screen it against the grounds on which the Comptroller may decline or must refuse.
- Draft the application to the Schedule's disclosure standard: all relevant facts and documents, the provision in issue, the proposition of law, previous applications and a draft ruling.
- Apply on behalf of a company not yet incorporated, which the Schedule expressly allows.
- Handle the Comptroller's information requests and negotiate the assumptions and conditions the ruling will carry.
- Advise on the disclosure the taxpayer must make in later returns and on when a ruling ceases to apply.
How a GMC advance tax ruling works, in plain terms
The Income Tax Act 2025 allows the Comptroller, on an application under the Seventh Schedule, to "make a ruling on any of the matters specified in that Part". Once the ruling is issued and disclosed in the return, the Comptroller "must apply the provision in relation to the person and the arrangement" in accordance with it. That is what makes it binding rather than advisory.
The ruling is narrow by design. It applies only to the provision expressly referred to in it and only for the period stated. It falls away if the arrangement is materially different, if there was a material omission or misrepresentation, if a stated assumption proves incorrect, or if a condition is not met, and from the date the provision is amended in a way that changes the outcome.
The Schedule sets the fees: a non-refundable application fee of $660, a further $165 per hour beyond the first four hours, and an optional expedite fee of up to twice the aggregate. All "$" figures in GMC tax law are United States dollars. The Act allows the Comptroller to waive fees in exceptional circumstances. The provision fixes these figures so an applicant can budget the ruling before applying.
Who this is for
- Groups planning a GMC holding, treasury or IP structure who want the 15% corporate rate confirmed for a specific arrangement.
- Applicants for founders company or strategic and development company status who need certainty on how an incentive interacts with other provisions.
- Investors relying on the share disposal exemption for a planned exit.
- Companies redomiciling into GMC under the Companies Act 2025 who want the redomiciliation tax rules confirmed.
How an engagement runs
- Scoping: we identify the provision in issue and test the question against the Schedule's exclusions and the grounds for declining or refusing, so you know at the outset whether a ruling is available.
- Fact file: we assemble the documents, the reasons for the arrangement and the proposition of law the Schedule requires.
- Draft ruling: we write the ruling we want the Comptroller to issue.
- Lodgement: we lodge, answer information requests and settle the assumptions and conditions.
- Compliance: we brief your finance team on the return disclosures the ruling requires each year.
Frequently asked questions
Can I get an advance ruling in GMC?
Yes. The Income Tax Act 2025 provides for binding advance rulings from the Comptroller under its advance ruling provision and Seventh Schedule. We prepare the application and lodge it.
Is a ruling binding on the Comptroller?
Yes, once issued and relied on. The Schedule obliges the Comptroller to apply the provision in accordance with the ruling for the period specified, provided the taxpayer discloses its reliance in the return. We make sure that disclosure is made.
Can the Comptroller refuse to rule?
Yes. The Comptroller may decline where the application requires a finding of fact or depends on assumptions, and must refuse where, among other things, the applicant is not seriously contemplating the arrangement, the matter involves foreign law, or an audit is under way on the same issue. We screen for each of these before drafting.
Can a ruling be withdrawn?
Yes, by written notice, but it continues to apply to an arrangement entered into before the withdrawal date for the remainder of the ruling period.
Will my ruling be published?
Only with your express consent, and then only as a summary that does not identify the applicant or the arrangement.
Talk to GMC counsel on the ground
Basnet Law Pte. Ltd. is the first law firm incorporated in the Gelephu Mindfulness City. A short conversation early in a matter usually saves time and cost later. Write to basnet@basnetgmc.com or office@basnetgmc.com with a few lines about your plans, and we will tell you plainly what is needed, how long it takes, and whether we are the right fit.
You may contact Basnet Law at basnet@basnetgmc.com or office@basnetgmc.com for any legal queries related to GMC.
