KATHMANDU, March 5: Nepal and Bangladesh have signed the Double Taxation Avoidance Agreement (DTAA) on Tuesday.
Amid a ceremony held at the Ministry of Finance, Singha Durbar, Revenue Secretary Lal Shanker Ghimire and his Bangladeshi counterpart signed the Memorandum of Understanding on the DTAA.
With the signing of the deal, investors, students and employees are expected to benefit because they can deduct the tax amount that they pay in one country in another country, officials said.
Once the agreement is signed, the Bangladeshi investors will be able to deduct the tax amount that they filed in Nepal while repatriating the dividend to Bangladesh, Nirmal Hari Adhkari, the revenue division chief at the Ministry of Finance, told Republica Online.
Similarly, nationals of both countries will not be liable to pay any other tax in Nepal and Bangladesh after showing the authentic documents of tax clearance where they are working, either in Bangladesh or in Nepal, according to Adhikari.