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UAE Signs Double Tax Convention With Bangladesh,
by Lorys Charalambous, Tax-News.com, Cyprus
Friday, November 06, 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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