Bangladesh to review double taxation treaty with Mauritius

The tax authority of Bangladesh has taken a move to revise its double taxation avoidance treaties with Mauritius and other major trading partners and incorporate new protocols commensurate with the digital economy.

According to the country’s Financial Express newspaper, the revised protocols of DTA agreements (DTAAs) with Mauritius and 12 other countries have already been sent to the concerned authorities through the diplomatic channels.

Besides Mauritius, the Netherlands, Canada, the UK, France, Switzerland, Singapore, Sweden, Norway and India are among the countries selected by Bangladesh’s National Board of Revenue (NBR) for revision of the DTAA protocols with them.

A number of DTAAs needed revision as Bangladesh was seeking a taxing right to the digital economy, said Niaz Morshed, second secretary of the income tax (international taxation wing), the Financial Express reported.

The existing DTAAs have exempted the non-resident companies not having permanent establishments (PE) from payment of taxes.

The companies are earning profits from Bangladesh, but the tax authority is unable to trace their income.

Bangladesh signed a DTAA with Mauritius in 2012.

The DTAA ensures that a person would not pay tax twice in two countries on the same income and, at the same time, s/he would not be able to escape payment of taxes on his income.