Dhaka, Bangladesh

Double Taxation Relief Available for Individuals and Organisations in Bangladesh

By Zaker Ahmed and Moshiur Rahaman, Ahmed Zaker & Co. Chartered Accountants

Increased globalisation and proliferation in international trade have made international tax planning opportunities more relevant than before. Double Taxation Avoidance Agreements (DTAAs) are regular, bilateral tax agreements between countries, created to avoid double taxation of the same income by outlining the taxing rights of each country regarding cross-border income streams and by providing tax credits/exemptions.

Bangladesh follows the UN model of DTAAs and has them with the following countries: the UK, Singapore, Sweden, Korea, Canada, Pakistan, Romania, Sri Lanka, France, Malaysia, Japan, India, Germany, the Netherlands, Italy, Denmark, China, Belgium, Thailand, Poland, the Philippines, Vietnam, Turkey, Norway, Germany, the USA, Switzerland, Oman, Myanmar, Mauritius, Saudi Arabia, the UAE, Belarus, Kuwait, and Bahrain.

In the case of income arising from those countries with whom Bangladesh has DTAAs, tax will be calculated as per the rate in the respective agreement, but with the condition that it will not exceed the tax calculated on the basis of the average tax rate applicable in Bangladesh (considering foreign income in total income) on the foreign income.

Conversely, if income arises from those countries with whom Bangladesh does not have any DTAAs, tax calculated on such doubly taxed income will be at the average rate of tax of Bangladesh or the average rate of tax of the said country, whichever is lower, subject to such rules as Bangladesh’s main tax authority, the National Board of Revenue (NBR), may make in this behalf.

In conclusion, the DTAAs that Bangladesh has in place with other countries across the world, along with the country’s economic growth and development, strategic geographic location, and business-friendly government policies, have made Bangladesh an exciting prospect for long-term foreign investment.

A strong understanding of the tax legislation and a proactive attitude in planning, designing, and implementing appropriate procedures will help both individuals and organisations alike to ensure that they utilise these opportunities to the fullest.


Zaker Ahmed

Zaker Ahmed

GGI member firm
Ahmed Zaker & Co. Chartered Accountants
Advisory, Auditing and Accounting, Corporate Finance, Tax
Dhaka, Chittagong, Bangladesh
T: +880 8300 5048
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: ahmed-zaker.com

Ahmed Zaker & Co is a leading firm of chartered accountants in Bangladesh providing audit, tax, and advisory services to businesses, both locally and overseas, across a wide range of sectors, since 1979.

Zaker Ahmed is the founding and managing partner of Ahmed Zaker & Co. and has been practising as a chartered accountant for the last 39 years. In addition to his senior leadership duties, he is also a highly experienced audit, tax, and consulting partner with a wide-ranging portfolio of both listed and non-listed clients in banking, aviation, logistics, pharmaceuticals, and textiles. He has served and continues to serve on the boards of various organisations, both locally and overseas, and has been continuously involved in developmental and philanthropic activities throughout his career.
Moshiur Rahaman

Moshiur Rahaman

GGI member firm
Ahmed Zaker & Co. Chartered Accountants
Advisory, Auditing and Accounting, Corporate Finance, Tax
Chittagong, Dhaka, Uttata, Bangladesh
T: +880 8300 5048
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: ahmed-zaker.com

Moshiur Rahaman is an associate within Ahmed Zaker & Co., working within the firm’s audit and tax departments, with experience of working with a portfolio of clients across a wide range of industries.


Published: International Taxation Newsletter, No. 11, Autumn 2019 l Photo: Matyas Rehak - stock.adobe.com

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