March 6, 2019 Kathmandu: Nepal and Bangladesh have signed a double taxation avoidance pact, agreeing to mitigate or avoid taxation on same income by the two countries.
The two countries signed Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion on Tuesday. Nepal’s Finance Secretary (Revenue) Lal Shanker Ghimire and Senior Secretary Ministry of Finance of Bangladesh Mosharraf Hossain Bhuiyan signed the agreement on behalf of their respective governments in Kathmandu.
“The agreement will eliminate double taxation as well as help to promote bilateral trade, services and capital investment,” added the statement.
Minister for Finance Yuba Raj Khatiwada and Ambassador of Bangladesh to Nepal Mashfee Binte Shams were also present in the signing ceremony.
Double taxation avoidance agreements are signed to assure investors that they are not required to pay taxes in two countries as they can adjust such tax in the country where they are based. “This will encourage investors to come and make investment in Nepal,” the statement added.
The agreement has been signed ahead of the Investment Summit 2019 that the government is organizing in Kathmandu in the last week of March.
Source: My Republica