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Swiss-Bangladesh DTA Ratified

by Ulrika Lomas, Tax-News.com, Brussels

23 December 2009


The double taxation agreement (DTA) between Switzerland and Bangladesh has been ratified, bringing the agreement into force.

The agreement contains provisions to improve the environment for investors in the two countries by removing double taxation. In particular, the DTA improves legal protection for companies and limits withholding tax in the area of dividend, interest and royalty payments.

The agreement, signed on December 10, 2007, does not include the OECD provisions on tax information exchange as the text of the agreement was approved prior to Switzerland’s adoption of the OECD standard in March 2009. While the Swiss government offered to revise the treaty to include the standard, the Bangladesh government decided to forgo revising the text in order to bring the agreement into force in earnest. The DTA is to apply provisionally from January 1, 2010.


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