Bangladesh recently revised an agreement with the Netherlands regarding the avoidance of double taxation and revenue evasion, as per a statement released by the finance ministry.
The signing ceremony, held at the Ministry of Finance in Dhaka, saw MLA van Rij, Minister of Tax Affairs and Tax Administration of the Netherlands, and Abul Hassan Mahmood Ali, Bangladesh’s Finance Minister, formalize the amendment. Originally signed 30 years ago, the agreement underwent changes to align with evolving international norms.
This move to amend agreements with various countries reflects Bangladesh’s commitment to removing inconsistencies and safeguarding its interests, particularly as it prepares to transition from the group of least developed countries (LDCs) by 2026.
The revised agreement now comprises 33 articles, with amendments aimed at broadening the taxation scope and introducing new provisions to enhance tax collection from emerging sources. Notably, tax-free benefits are now exclusively provided to state-owned enterprises, and a new provision on technical service fees ensures tax collection at a maximum rate of 10 % for services rendered.
Furthermore, a newly added article mandates cooperation between contracting states in revenue collection. Key figures from both Bangladesh and the Netherlands attended the signing ceremony, including Abu Hena Md. Rahmatul Muneem, Senior Secretary of the Internal Resources Division and Chairman of the National Board of Revenue, Md. Khairuzzaman Mazumder, Finance Secretary, and Sonja Kuip, Charge d’Affaires of the Embassy of the Kingdom of the Netherlands in Bangladesh.
The bilateral relationship between Bangladesh and the Netherlands remains robust, marked by extensive trade and investment ties. The Netherlands stands as a significant source of foreign direct investment in Bangladesh, with investments totaling $400.21 million in 2020, representing 15.5 % of the country’s total FDI.
Photo Courtesy by : The Financial Express
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