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Sharif Husian sharifhusian@yahoo.com 9/28/04 4:36 PM |
Bangladesh, US sign deal to avoid double taxation Associated Press Dhaka, September 26-2004 Bangladesh and the United States signed an agreement on Sunday to avoid double taxation for US and Bangladeshi companies investing or doing business in each other's countries, the government said. The chairman of Bangladesh's National Board of Revenue, Khairuzzaman Chowdhury, and US Ambassador in Bangladesh Harry K Thomas signed the accord in the capital, Dhaka, the government said in a statement. "With the implementation of the agreement, economic relations between Bangladesh and the United States would be consolidated and US investment in the country expanded," it said. Under the new agreement, American investors and companies -- after paying taxes in Bangladesh -- will not have to pay taxes again on repatriated profits. The same will apply for Bangladeshis doing business in the United States. The deal will allow tax exemption for the first two years for Bangladeshi and American students and teachers working in each other's countries. US companies have invested nearly $1 billion in Bangladesh, mostly in the natural gas industry. Meanwhile, American discount stores are major buyers of Bangladesh-made garments, purchasing about $2 billion worth a year. Bangladesh annually imports nearly $225 million of US goods, mostly computers and food products. Many Bangladeshi expatriates also run small businesses in the United States. |
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