Mauritius and Bangladesh have signed a new Protocol, amending their Double Taxation Avoidance Convention dated 21^st December 2009. The changes will take effect once notification procedures are finalised.

Key updates include the introduction of a principal purpose test, aligning with international standards set by the OECD/G20 BEPS initiative. The Protocol also extends the 10% withholding tax to interest, royalties, and technical fees. Additionally, it revises the capital gains tax provisions so that they do not apply to abusive arrangements and include entities other than companies, applicable only in cases where more than 50% of the value of the assets consists of immovable property in Bangladesh or Mauritius. These amendments aim to strengthen fiscal cooperation between the two nations while enhancing tax compliance.

Further modifications include updated articles on Exchange of Information and Mutual Agreement Procedures, reflecting the 2017 OECD Model Tax Convention. The introduction of a new article on Assistance in Collection of Taxes will ensure better enforcement of procedures through bilateral support. Overall, these changes signify a commitment to transparent and equitable tax practices, benefiting businesses operating in both jurisdictions.