The income of following resident foreigners are excluded from total income

I T O ,1984

Solution of Income Tax in Bangladesh: Double Taxation Avoidance Agreement & method of determining notional income

Tuesday, February 21, 2012

Double Taxation Avoidance Agreement & method of determining notional income


Today I am going to discuss about double taxation which is a very common problem faced by a resident  or non resident when comes from abroad .  If the country has agreement with Bangladesh , the taxpayer ( assesse) may not pay tax again under some conditions . In fact , to develop economy Govt. of many countries sign many treaties with each other. It relieves them from discrimination and misunderstanding. It develops mutual understanding and friendship. Details of it is available here

Double Taxation Avoidance Agreement (Sec. 144 read with 7th Schedule) :

The Bangladesh model of Agreement on Avoidance of Double Taxation consists of 29 Articles  . Bangladesh has agreement with more or less 32 countries.

name of continent
country
Asia
India, Sri Lanka, Pakistan, China, Japan,     Singapore, Korea, Philippines, Thailand, Vietnam, Myanmar, Malaysia, Indonesia, Mauritius, Saudi  Arabia, U A E, Oman, Turkey

Europe
UK, Norway, Sweden, France, Germany , Netherlands, Italy, Denmark ,Romania, Belgium , Poland, Switzerland
North America
Canada, USA

Requirements  
                       Tax clearance certificate from where he came


method of determining the amount of notional income of non resident

Sometimes non resident taxpayer may have profit/ gain/ income in Bangladesh . But at that time he may be in a foreign country. Therefore, it is necessary to address the issue here.

     Rule-35 read with rule-34 prescribes the method of determining the amount of notional income in respect of which the non resident may be charged under section 104.

who will charge ?

                         D C T

when?
                       actual amount of profit/ gain/  income accruing or arising in Bangladesh to non resident Bangladeshi cannot be determined

source
                         business connection, any property ,any asset in Bangladesh

amount :
                   to be determined by DCT on the basis of percentage of turnover accruing or arising considered reasonable or on profits computed under provisions

3 comments:

  1. Hi Thank your for your blog. I am an NRB in Canada with some dividend income in Bangladesh. I have been mostly submitting my return in Canada. Not sure if I have to continue submit return in Bangladesh also. Could you refer me some related rules? Is there a better way to reach you?

    Thanks,

    Majbah

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  2. Hello,
    I am a Canadian Citizen and residing in Dhaka since 2007 April. In 2009, I have registered a company in Bangladesh . Since 2009 September i have been earning income from clients outside Bangladesh. I have not filed my tax return both in Bangladesh and Canada. I want to file my income tax and want to know the taxation policy, how to file tax and where to get help. I want to know how much tax i have to pay etc. Can you provide advice on this matter?

    Thank you.

    Moin

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  3. This comment has been removed by the author.

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