6.6 Double Taxation Agreements and Foreign Tax Implications

To prevent double taxation and promote cross-border trade, Bangladesh has 36 Double Taxation Agreements (DTAs)with countries such as India, the United States, the United Kingdom, Japan, and China. These treaties help avoid double taxation on income, dividends, royalties, and capital gains while providing reduced withholding tax rates for foreign investors. Foreign companies operating in Bangladesh must consider branch remittance tax (20%) if repatriating profits. Additionally, businesses engaged in cross-border transactions must comply with transfer pricing regulations, ensuring fair pricing in intercompany dealings to prevent tax evasion and maintain transparency.