UAE Signs Double Tax Convention With Bangladesh

by Lorys Charalambous, Tax-News.com, Cyprus

06 November 2009

The government of the United Arab Emirates has confirmed the signing of a convention for the avoidance of double tax and fiscal evasion with respect to taxes on income with Bangladesh.

Commenting on the draft agreement, Khalid Al Bustani, Executive Director for International Financial Relations at the UAE Ministry of Finance, stated that:

"The UAE is a leading country with regards agreements to avoid double taxation. These agreements bring about a positive impact on investment promotion, economic cooperation and trade between the UAE and other countries. The number of such agreements that the UAE has signed with various countries has now reached 49."

The text of the agreement aims to facilitate a beneficial tax environment to encourage economic activity, by providing an exemption for government organizations from taxes on any income, and reducing the tax on private investments from 17.5% to 5%, among other measures. Income stemming from the aviation sector is also exempted under the pact.

“This draft agreement will enhance the trade partnership between the two countries and ease the tax burden on the states’ investments in its public and private sectors. It also facilitates the movement of capital and goods in addition to encouraging joint investments between the two countries. It is in harmony with the vision of MOF with regard to increasing cooperation and development of economic relations with other countries across the world,” Al Bustani concluded.

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