Income Tax Ordinance

Chapter XVII

Displaying 1-2 of 2 results.

144. Agreement to avoid double taxation.-

CHAPTER XVII
DOUBLE TAXATION RELIEF

 

144. Agreement to avoid double taxation.-

(1) The Government may enter into an agreement with the Government of any other country for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes  on income  leviable  under  this  Ordinance  and  under  the  corresponding  law  in force in that country, and may, by notification in the official Gazette, make such provisions as may be necessary for implementing the agreement.


(2) Where any such agreement as is referred to in sub-section (1) is made with the Government of any country, the agreement and the provisions made for implementing  it  shall,  notwithstanding  anything  contained  in  any  other  law for the time being in force, have effect in so far as they provide for-

(a) relief from the tax payable under this Ordinance;
(b)  determining  the  income  accruing  or  arising,  or  deemed  to  be accruing or arising, to non-residents from sources within Bangladesh;
(c) where all the operations of business or profession are  not carried on  within  Bangladesh,  determining  the  income  attributable  to operations  carried  on  within  or  outside  Bangladesh,  or  the  income chargeable  to  tax  in  Bangladesh  in  the  hands  of  non-residents, including their agencies, branches or establishments in Bangladesh;
(d) determining the income to be attributable to any person resident in Bangladesh having any special relationship with a non-resident;
(e)  recovery  of  tax  leviable  under  this  Ordinance  and  under  the corresponding law in force in that country; or
(f)  exchange  of  information  for  the  prevention  of  fiscal  evasion  or avoidance  of  tax  on  income  chargeable  under  this  Ordinance  and under the corresponding law in force in that country.

(3)  Any  agreement  made  in  pursuance  of  sub-section  (1)  may  include provisions for relief from tax for any period before the commencement of this Ordinance or before the making of the agreement and provisions as to income which are not themselves subject to double taxation.


(4) The provisions of the Seventh Schedule shall have effect where an agreement  under  this  section  provides  that  the  tax  payable  under  the laws of the country concerned shall be allowed as a credit against the tax payable in Bangladesh.

 

 

145. Relief in respect of income arising outside Bangladesh.-

145.  Relief  in  respect  of  income  arising  outside  Bangladesh.-

If  any  person who  is  resident  in  Bangladesh  in  any  year  proves  to  the  satisfaction  of  the Deputy  Commissioner  of  Taxes  that,  in  respect  of  any  income  which  has accrued or arisen to him during that year outside Bangladesh, he has paid tax, by deduction or otherwise, in any country with which there is no reciprocal agreement  for  relief  or  avoidance  of  double  taxation,  the  Deputy Commissioner of Taxes may, subject to such rules as the Board may make in this behalf, deduct from the tax payable by him under this Ordinance a sum equal to the tax calculated on such doubly taxed income at the average rate of

tax of Bangladesh or the average rate of tax of the sai d country, whichever is the lower.


Explanation.-The expression "average rate of tax" means the rate arrived at by dividing the amount of tax calculated on the total income by such income.