Bangladesh and Qatar signed an income tax treaty on 23 April 2024, covering double taxation, withholding taxes, and capital gains. It takes effect after ratification, applying in Bangladesh from 1 July and in Qatar from 1 January following entry into force.
Bangladesh and Qatar concluded their income tax treaty on 23 April 2024. Bangladesh’s income tax, including any applicable surcharge, and Qatar’s income tax and corporate tax are both encompassed under the treaty.
Double taxation relief
To prevent double taxation, both Contracting States apply the credit method. This ensures that taxes paid in one State are credited against the tax liability in the other State, providing relief for residents and companies engaged in cross-border transactions.
Withholding tax rates
Dividends are subject to 5% withholding tax if the beneficial owner is a company directly holding at least 3% of the paying company’s capital; otherwise, the rate is 10%. Interest is taxed at 7.5%, with an exemption for amounts received by a Contracting State, its political subdivisions, local authorities, the Central Bank, or any entity fully owned, directly or indirectly, by such State, subdivision, or authority. Royalties and fees for technical services, including managerial, technical, or consultancy services, are taxed at 7.5%.
Capital gains
Capital gains earned by a resident of one Contracting State may be taxed by the other State in specific cases. This includes gains from the sale of immovable property located in the other State, gains from movable property forming part of a permanent establishment in the other State, and gains from shares deriving more than 50% of their value directly or indirectly from immovable property in the other State. All other gains from property sales are taxable only in the resident’s State.
The treaty takes effect after ratification and applies in Bangladesh from 1 July and in Qatar from 1 January following entry into force.
