Tuesday, March 5, 2019

Nepal-Bangladesh sign DTAA

Nepal and Bangladesh today signed Double Taxation Avoidance Agreement and the Prevention of Fiscal Evasion with respect to taxes on income.
At a function organised in Singha Durbar at the Finance Ministry, revenue secretary Lal Shanker Ghimire and his Bangladeshi counterpart senior secretary International Resources Division of Ministry of Finance and chairman of the National Board of Revenue of Bangladesh Mosharraf Hossain Bhuiyan signed the Memorandum of Understanding (MoU) on the DTAA in presence of finance minister Dr Yubraj Khatiwada.
The agreement aims at providing settlement between the tax claims of the government of Nepal and the government of the People’s Republic of Bangladesh. It would also eliminate double taxation and promotion of bilateral trade, persons, services and capital investment.
With the signing of the deal, investors, students and employees are expected to benefit because they can deduct the tax amount that they pay in one country in another country.
"The agreement will pave ways for the expansion of trade relation and investment between the two countries," said Ghimire after signing the agreement between the two SAARC countries.
Once the agreement is signed, the Bangladeshi investors will be able to deduct the tax amount that they filed in Nepal while repatriating the dividend to Bangladesh. Likewise, nationals of both countries will not be liable to pay any other tax in Nepal and Bangladesh after showing the authentic documents of tax clearance where they are working, either in Bangladesh or in Nepal.
Lately, Bangladeshi investors have been interested to invest in Nepal, and the agreement will encourage more investment from Bangladeshi investers. "The agreement signed today would be crucial for investment expansion as well as searching further dimensions," senior secretary Hossain added.
Nepal has already signed DTAA with China, India, Qatar, South Korea, Pakistan, Mauritius, Austria, Sri Lanka, Norway and Thailand.

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