Bangladesh, Netherlands amend taxation deal
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Bangladesh yesterday amended an agreement with the Netherlands on avoidance of double taxation and revenue evasion, according to a press release issued by the finance ministry.
MLA van Rij, tax affairs and tax administration minister of the Netherlands, and Abul Hassan Mahmood Ali, finance minister of Bangladesh, signed the agreement at the Ministry of Finance in Dhaka.
The original agreement between the two countries was signed 30 years ago, on July 13, 1993. But there have been numerous changes to international norms in the meantime.
Similar efforts have been made to amend agreements with various countries in the past to remove inconsistencies and uphold the interests of Bangladesh, especially as the nation is set to graduate from the group of least developed countries (LDCs) in 2026.
The new agreement has 33 articles. Important articles were amended to widen the scope for taxation while some new articles were added to facilitate tax collection from new sources.
One of the articles was amended so that tax-free benefits are provided only to state-owned enterprises.
A new article was incorporated on technical service fees, which will ensure tax collection at the maximum rate of 10 percent in case of payment of bills against services.
Another new article was added ensuring both contracting states would cooperate with each other in revenue collection.
The signing ceremony was attended by Abu Hena Md Rahmatul Muneem, senior secretary of the Internal Resources Division and chairman of the National Board of Revenue, Md Khairuzzaman Mazumder, finance secretary, and Sonja Kuip, Charge d'Affaires of the Embassy of the Kingdom of the Netherlands in Bangladesh.
Currently, Bangladesh and the Netherlands maintain an excellent bilateral trade and investment relationship.
Bangladesh is one of the Netherlands' development cooperation partner countries.
In 2020, the Netherlands was the top source of foreign direct investment in Bangladesh, accounting for $400.21 million, or 15.5 percent, of total FDI investments of $2.56 billion.
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