India Bangladesh Double Taxation Avoidance Agreement

The Double Taxation Prevention Convention (DBAA) is a tax treaty signed between two countries to address income tax eligibility issues and to help taxpayers avoid twice the payment of income tax on the same income, property and financial services transactions in two separate jurisdictions. The DTAA intervenes in cases where a subject is a citizen/resident in one country but has a source of income in another country. In general, double taxation can occur if the same income is taxed at both the company and personal levels. Companies are separate legal entities from their shareholders, from which companies and individuals pay taxes on their annual income. In the case of international trade, these revenues can be taxed in the country where they are collected and then reintroduced if they are repatriated to the company`s country of origin. Thanks to such double taxation, the international business becomes too luxurious. On the other hand, this can also apply to an individual. A person who earns income must pay taxes in the country where the income is collected, as well as in the country where he or she is a citizen. Thus, responsibility for the payment of income tax on the same income is also assumed in the country of income and in its country of origin. Section 144. (1) the 1984 Income Tax Regulation allows the Government of Bangladesh to reach an agreement with the Government of another country on the prevention of double taxation and the prevention of tax evasion with respect to income collected under this regulation and applicable legislation in that country.

The government may, by notification to the Official Journal, make the necessary arrangements to implement this agreement. With this power, the Government of Bangladesh dtAA has signed with 36 countries, including Bahrain, Belarus, Canada, China, Denmark, France, Germany, Indonesia, India, Italy, Japan, South Korea, Kuwait, Malaysia, Myanmar, Nepal, Netherlands, Norway, Oman, Oman, Pakistan, Philippines, Poland, Romania, Saudi Arabia, Singapore, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, Great Britain, United States, Vietnam, etc.