Overview of the Maldives-Bangladesh DTA

Cross-border taxation presents a complex interplay of factors that can create challenges for individuals and businesses operating outside of their resident states. These challenges arise from differing domestic laws, which may lead to overlaps or gaps in tax obligations.

The primary goal of a Double Tax Avoidance Agreement (“DTA”) is to address these issues and eliminate instances of double taxation for both states and their residents. In that regard, the Maldives-Bangladesh DTA, signed on 23 December 2021, seeks to simplify tax obligations between the two states. The agreement covers various income categories, including dividends, interest, royalties, fees for technical services, and capital gains.

This overview highlights the key components of the Maldives-Bangladesh DTA, its benefits, and its implications for businesses attempting to make use of the treaty.

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