3. For the purposes of this Article, `dividends` means income from shares, mining shares, start-up shares or other rights other than claims on profits, as well as income from other company rights which, under the law of the State of residence of the distributing company, is subject to the same tax treatment as income from shares. Although the terms of not all agreements are completely identical, they generally provide for either the complete avoidance of double taxation or the application of reduced rates. It therefore appears that the DTAA clearly promotes the free movement of international trade and investment while bringing benefits to any contracting country. It increases transparency regarding the collection of income tax in both countries and its rational distribution. 2. This Convention shall also apply to all taxes of the same or substantially similar nature imposed by one of the States Parties after the date of signature of this Convention, in addition to or in place of the taxes referred to in paragraph 1 of this article. The competent authorities of the Contracting States shall inform each other of any substantial change in their respective tax laws. 7. Where profits include income which is treated separately in other Articles of this Convention, this Article shall not affect the provisions of those Articles.

4. Notwithstanding paragraphs 1 and 2, a person who is not an independent legal representative to whom paragraph 5 applies shall be deemed to be located in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to be a national territory having a permanent establishment in the first-mentioned State if – 2. If, in accordance with paragraph 1, a natural person resides in both Contracting States, his case shall be determined in accordance with the following rules: therefore, if a natural or legal person has to pay taxes on the same income in both places, he may even have almost zero income. This certainly affects the growth of the economy, as it has a negative economic impact, especially on a company`s profit margin and a person`s salary. 7. An enterprise of a Contracting State shall be deemed to be an enterprise having a permanent establishment in the other Contracting State if it carries on an activity consisting in the supply of the services of public artists (such as theatre, film, radio or television artists and musicians) or of athletes in that other Contracting State, unless such services are provided under a cultural or sports exchange programme agreed by both States. Contracting. As a result, in such circumstances, DTAA facilitates foreign investment and the employment of expatriates.

These double taxation treaties are treated as comparisons between two countries, which helps to eliminate international double taxation. This paragraph shall be without prejudice to the taxation of the profits of the company from which the dividends are distributed. Therefore, this type of double taxation of the same income has serious consequences for the future of international trade and investment. The decision of any foreign investor in trade and investment depends heavily on tax issues, including tax brackets, tax exemption and the ability to avoid double taxation. In this period of globalization, such double taxation is unacceptable, as it is considered one of the main obstacles to the development of international economic relations. The attached Agreement between the Government of the Republic of India and the Government of the People`s Republic of Bangladesh for the Avoidance of Double Taxation and the Prevention of Tax Evasion in the Field of Income Tax entered into force on 27 May 1992 following the exchange of the instruments of ratification referred to in Article 31, paragraph 1 of that Convention. (4) To the extent that it was customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of an apportionment of the total profits of the enterprise among its various parts, paragraph 2 does not prevent that Contracting State from determining the profits to be taxed on a customary distribution basis; However, the method of allocation chosen shall be such that the result conforms to the principles set out in this Article. Therefore, in the context of the desire to conclude an agreement to avoid double taxation and prevent tax evasion in the field of income tax, such DTAs are obviously a combination of two different tax systems, each belonging to different countries, with the aim of reducing the effects of double taxation. Bangladesh should take the lead and conclude more and more such agreements with other countries in order to further promote foreign direct investment and individual engagement.

In general, double taxation can occur when the same income is taxed at both the business and personal levels. Corporations are separate legal entities from their shareholders, where companies pay taxes on their annual income just like individuals. In the case of international trade, this income can be taxed in the country where it is earned and then reimposed if it is repatriated to the company`s country of origin. Such double taxation makes international business too luxurious to prosecute. On the other hand, it can also apply to a person. A person who earns income must pay taxes in the country where the income is earned and also in the country where he is a citizen. Thus, the responsibility to pay income tax on the same income arises in the country of the source of income and also in its country of origin. Section 144. (1) The Income Tax Ordinance 1984 allows the Government of Bangladesh to enter into an agreement with the Government of another country for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income to be levied under this Regulation and the corresponding law in force in that country. The Government may, by notification to the Official Journal, take the measures necessary for the implementation of the said Agreement.

Citing this power, the Government of Bangladesh has signed a DTA with 36 countries, including Bahrain, Belarus, Canada, China, Denmark, France, Germany, Indonesia, India, Italy, Japan, the Republic of Korea, Kuwait, Malaysia, Myanmar, Nepal, the Netherlands, Norway, Oman, Pakistan, the Philippines, Poland, Romania, Saudi Arabia, Singapore, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom, United States, Vietnam, etc. The aforementioned problem was highlighted by the Finance Act of 2018 by the introduction of an amendment to Section 56 of the Income Tax Ordinance 1984. It provides that if, in respect of a payment under this section, the Commission is satisfied, on a request made on that behalf, that the non-resident is not required to pay taxes in Bangladesh or is taxable in Bangladesh by reason of a tax arrangement or other reason, the Committee may issue a certificate stating that: such payment shall be made without any deduction or, where appropriate, with a deduction at the reduced rate specified in the certificate. It also states that the tax deducted under that section is to be regarded as the minimum tax payable by the beneficiary in respect of the income for which the deduction is made and is not subject to refund, set-off or adjustment on request. Therefore, banks should receive the beneficiary`s certificate before granting a tax advantage under the DTA when transferring the money abroad. Income Tax Act, 1961: Notification pursuant to § 90: Double Taxation Convention between India and Bangladesh 1. For the purposes of this Convention, « resident of a Contracting State » means any person who, under the laws of that State, is taxable there by reason of his place of residence, domicile, place of management or any other similar criterion. 2. Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, the profits which would be expected of it if it were an independent and distinct enterprise carrying on the same or similar activities under the same or similar conditions and acting independently with the enterprise shall be attributed to that permanent establishment in each Contracting State; of which it is.

a permanent establishment. In any event, where the correct amount of profits attributable to a permanent establishment cannot be determined or where the determination of that profit gives rise to particular difficulties, the profits attributable to the permanent establishment may be calculated on a reasonable basis. .