Bangladesh inks deal with Mauritius on avoiding double taxation 

Bangladesh has signed a double taxation avoidance agreement (DTAA) protocol with Mauritius in a bid to collect more taxes as it is a potential trade partner.

Finance Minister Abul Hassan Mahmood Ali signed the DTAA with Mauritius on behalf of Bangladesh today (9 April). 

This agreement was previously signed by Mauritius in February and sent to Bangladesh through diplomatic channels.

Chairman of the NBR and other officials from the Ministry of Foreign Affairs were present at the signing ceremony.

According to NBR officials, Bangladesh previously had a DTAA with Mauritius, but the new protocol includes some amendments that will take effect in July. 

These amendments will allow Bangladesh to collect additional taxes from certain sectors.

A senior NBR official told The Business Standard, "As a result of signing the amended protocol, Bangladesh will be able to levy tax at a rate of 10% to 15% on income from royalty, capital gains, interest, and technical know-how."

"Bangladesh has had a DTAA with the country since 2012. However, it has been recently revised with certain amendments, leading to its re-signing as a DTAA protocol."

"Mauritius signed on 5 February and sent it to Bangladesh through diplomatic channels. Bangladesh signed it today. The amended DTAA protocol will be implemented from next July," he added.

Bangladesh has limited trade relations with Mauritius, but there have been recent investments from the latter. 

Mauritius, formerly known as a tax haven, is now positioning itself as a destination for laundered money from various countries.

In 2022, Bangladesh exported goods worth about $30 million to the country and imported about $3 million.

In addition to Mauritius, Bangladesh has DTAA agreements with more than 40 other countries.