Bangladesh: Tax spared
The agreement provides for credit to be given for tax ‘spared’ (see INTM161270) in Bangladesh under the provisions of Bangladesh law set out in Article 22(2)(a).
In addition to the sections of the Bangladesh Income Tax Act 1922 specified in Article 22(2)(a), Sections 44(4), 45 and 46 of the Bangladesh Income Tax Act 1984 as well as section 46A of the1995 Act are agreed to be of a substantially similar character and credit may also be given, under Article 22(2)(b), for tax spared under those Sections.
The new paragraph (h) added to the Notification number SRO317-L/76 by Notification number SRO27-L/78 is not considered to be of a substantially similar character to the provisions listed in Article 22(2)(a).
Relief is restricted to tax ‘spared’ in Bangladesh for a period of 10 years in respect of any one source of income, other than interest on certain specified loans. Amounts of tax ‘spared’ for which relief is given should be reported as mentioned at INTM161290.