2019 Bangladesh-Nepal Income Tax Treaty Available

<p>Tax Analysts has obtained the English text of the Bangladesh-Nepal income tax treaty signed March 5, 2019, in Kathmandu.</p> <p>Under the treaty, dividends are taxable at a maximum rate of 10 percent if the beneficial owner is a company that directly holds at least 10 percent of the capital of the payer company. A 15 percent rate applies in other cases. Interest and royalties are generally taxable at a top rate of 15 percent. Interest is taxable at a top rate of 10 percent if it is paid to a bank carrying on a bona fide banking business that is a resident of the other contracting state and is the beneficial owner of the interest. Both countries generally apply the credit method for the elimination of double taxation.</p> <p>This is the first tax treaty concluded between the two countries. It will enter into force once ratification instruments are exchanged. In Bangladesh its provisions will apply from July 1 of the year following entry into force and in Nepal its provisions will apply from July 16 of the year following entry into force.</p>

<p><a href="/lr/resolve//2d2g2">Bengali text</a>. <a href="/lr/resolve//296g3">Prior coverage</a>.</p>

<p>July 1, 2020 (Bangladesh); July 16, 2020 (Nepal). See Article 29.</p>

<p>Tax Analysts has obtained the English text of the Bangladesh-Nepal income tax treaty signed March 5, 2019, in Kathmandu.</p>

Tax Analysts has obtained the English text of the Bangladesh-Nepal income tax treaty signed March 5, 2019, in Kathmandu. Under the treaty, dividends are taxable at a maximum rate of 10 percent if the beneficial owner is a company that directly holds at least 10 percent of the capital of the payer company. A 15 percent rate applies in other cases. Interest and royalties are generally taxable at a top rate of 15 percent. Interest is taxable at a top rate of 10 percent if it is paid to a bank carrying on a bona fide banking business that is a resident of the other contracting state and is the beneficial owner of the interest. Both countries generally apply the credit method for the elimination of double taxation. This is the first tax treaty concluded between the two countries. It will enter into force once ratification instruments are exchanged. In Bangladesh its provisions will apply from July 1 of the year following entry into force and in Nepal its provisions will apply from July 16 of the year following entry into force.

<h4>Rate Table Instructions</h4> <ul> <li>You must enter a rate for each rate type</li> <li>Enter only one rate value per row</li> <li>You may leave the country columns blank if the rate is the same for both countries</li> <li>Country names (if entered) must exactly match the jurisdictions</li> <li>Leave the Partner Country column blank if you want the rate to apply to all partners of the Main Country</li> <li>Enter "n/a" in each rate row to hide the partner in the Main Country table</li> <li>Note that the same rates may apply for Main Country and Partner Country or the Main Country may apply different rates to the Partner Country</li> </ul> <table> <tbody> <tr> <th> <div>Rate Type</div> (Dividends, Interest, Royalties)</th> <th>Main Country</th> <th>Partner Country</th> <th>Rate</th> <th>Footnote 1</th> <th>Footnote 2</th> <th>Footnote 3</th> <th>Footnote 4</th> </tr> <tr> <td>Dividends</td> <td> </td> <td> </td> <td>10/15</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Interest</td> <td> </td> <td> </td> <td>10/15</td> <td>The 10 percent rate applies to interest paid to a bank carrying on a bona fide banking business that is a resident of the other contracting state and is the beneficial owner of the interest. The 15 percent rate applies in other cases.</td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Royalties</td> <td> </td> <td> </td> <td>15</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table>

Bangladesh - Nepal: 2019 Income Tax Agreement

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2019 Bangladesh-Nepal Income Tax Treaty Available