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Branch office Taxation in Bangladesh

27 December 2019

We are currently dealing in Bangladesh through Dealers. Now we are planning to open a branch office in Bangladesh. What will be the impact of our direct supply to dealers from India even if we have branch office there. Will that income also be treated as deemed income of Bangladesh Branch and gets taxable there?

Reference of relevant clause will be helpful.

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2 Replies

Kapadia Pravin (17259 Points)
Replied 27 December 2019

You need to check Tax provisions of Bangladesh and DTAA agreement between India Bangladesh.

For direct supply ,it will be usually under Export category.

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Ronak Dagliya (CA) (332 Points)
Replied 27 December 2019

Thanks Pravin.

I checked DTAA agreement but there is no specific clause regarding my query. Bangladesh tax provision also doesn't clarify this.

Since we will have a permanent establishment in Bangladesh, will they allow us to trade directly also ?

What is the rule in India if any foreign company have PE in India (as a branch) and also wish to sale directly from parent company to India customers ?