each country with regard to cross-border flows of income andproviding for tax credits or exemptions to eliminate doubletaxation. It also provides exchange of information between treatypartners regarding evasion of tax.
The objectives of a Bangladesh DTA are as follows:
to obtain a more effective relief from double taxation compared to relief gained under unilateral measures;
to create a favorable climate for the inflow of foreign investment into the country;
to make special tax incentives provided by Bangladesh fully effective for taxpayers of capitalexporting countries; and
to prevent evasion and avoidance of tax.
The Bangladesh model of Avoidance of Double Taxation Agreement consists of 29Articles that are as follows:
Article 1 - Persons CoveredArticle 2 - Taxes CoveredArticle 3 - General DefinitionsArticle 4 - ResidentArticle 5 - Permanent EstablishmentArticle 6 - Income from Immovable PropertyArticle 7 - Business ProfitsArticle 8 - Shipping and Air TransportArticle 9 - Associated EnterprisesArticle 10 - DividendsArticle 11 - InterestArticle 12 - RoyaltiesArticle 13 - Fees for Technical ServicesArticle 14 - Independent Personal ServicesArticle 15 - Dependent Personal ServicesArticle 16 - Director's FeesArticle 17 - Artists and SportsmenArticle 18 - PensionsArticle 19 - Government ServiceArticle 20 - Students and TraineesArticle 21 - Lecturers and ResearchersArticle 22 - Other IncomeArticle 23 - Elimination of Double TaxationArticle 24 - Non - DiscriminationArticle 25 - Mutual Agreement ProcedureArticle 26 - Exchange of InformationArticle 27 - Diplomatic Agents and Consular OfficersArticle 28 - Entry into ForceArticle 29 – Termination
Like many other countries in the developed as well as the developing world, Bangladesh too cannot absolveherself from the need to facilitate her trade and investments with the outside world through international taxtreaty network with other countries. The increased pace of industrialization coupled with increased foreigndirect investment in the country necessitated tax treaty arrangements with other countries to provide