Bangladesh & Netherlands amend 1993 double tax avoidance agreement

13 Mar '24

1 min read

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The Netherlands and Bangladesh have renewed their 1993 pact to avoid double taxation and prevent tax evasion by incorporating required changes and doing away with inconsistencies.
The new agreement offers tax-free benefits only to state-owned institutions.
Tax can now be collected at a maximum rate of 10 per cent in case of payment of bills against services.

The Netherlands and Bangladesh recently renewed their 1993 agreement to avoid double taxation and prevent tax evasion by incorporating required changes and doing away with inconsistencies.

Bangladesh finance minister Abul Hassan Mahmood Ali and Dutch minister for tax affairs and tax administration MLA van Rij signed the deal in Dhaka.

The new treaty consists of 33 articles, with several new articles added to broaden the scope of taxation and collect tax from new areas, according to media reports from Bangladesh.

The new agreement offers tax-free benefits only to state-owned institutions, a press release issued by the Bangladesh finance ministry noted. Tax can now be collected at a maximum rate of 10 per cent in case of payment of bills against services.

It includes a provision regarding capital gains on the transfer of shares getting taxable in Bangladesh. Both contracting states shall assist each other in collecting tax claims.

In fiscal 2022-23, Bangladesh's exports to the Netherlands were worth $2 billion and its imports from there were worth $300 million.

Export items included knitwear, wovens, garments, shoes, textiles and leather goods. Imports comprised capital machinery, minerals, chemicals, pharmaceuticals, plastics and rubber.

The Netherlands ranks fourth in terms of foreign direct investment in Bangladesh.

Fibre2Fashion News Desk (DS)

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