Bangladesh Seals Tax-cutting Deal with Mauritius

Bangladesh recently signed a double taxation avoidance agreement (DTAA) protocol with Mauritius in an effort to enhance tax collection from potential trade partners.

The agreement was signed by Finance Minister Abul Hassan Mahmood Ali on April 9, following Mauritius’ signing of the agreement in February and its subsequent transmission to Bangladesh through diplomatic channels.

The signing ceremony was attended by the Chairman of the NBR and officials from Mauritius’ Ministry of Foreign Affairs.

The amended protocol will come into effect in July and will allow Bangladesh to collect additional taxes from certain sectors.

Under the new agreement, Bangladesh will be able to impose taxes ranging from 10% to 15% on income from royalty, capital gains, interest, and technical know-how.

The previous DTAA between Bangladesh and Mauritius dates back to 2012 and has been revised with these new amendments.

While trade relations between Bangladesh and Mauritius are limited, there have been recent investments from Mauritius.

It is noteworthy that Mauritius, once considered a tax haven, has been working towards combating money laundering from various countries.

In 2022, Bangladesh exported goods worth approximately $30 million to Mauritius and imported around $3 million from the country.

Bangladesh has DTAA agreements with more than 40 other countries in addition to Mauritius.

Source: TBS News