Bangladesh, UAE Initial Investment Agreement

by Lorys Charalambous, Tax-News.com, Cyprus

24 September 2010

The United Arab Emirates Ministry of Finance has announced the initialling of an agreement with Bangladesh for the protection and promotion of investments, to complement the double tax agreement initialled by both parties in May 2010.

The agreement was signed by Khalid Ali Al Bustani, Executive Director of International Financial Relations at the UAE Ministry of Finance, and Ovruza Khan, Deputy Secretary in the Bangladesh Ministry of Industry, on September 20.

The agreement, and the double tax treaty previous initialled, are aimed at increasing bilateral economic cooperation, in particular by increasing trade flows and bilateral investment. Provisions in the agreement govern such issues as currency exchange, aviation cooperation, and dispute settlement. In general, the agreement will enhance the investment environment for entrepreneurs in the respective countries, and provide legal certainty to investments entered into by entrepreneurs from the UAE in Bangladesh, and vice versa.

The signing of the agreement follows the earlier initialling of a convention for the avoidance of double taxation and fiscal evasion. The agreement, after it enters into force, will assign the taxing rights of the two countries, ensuring that individual and companies operating in both countries and not taxed twice, again providing legal certainty.

The Bangladeshi Ambassador to the UAE, Mohammad Nazmul Quaunine, at the recent signing, said the agreements would be signed at a forthcoming meeting in the UAE, to be attended by high level Bangladeshi diplomats.

Recommended