The draft agreement was reached after negotiations that lasted three days at the office of the Ministry in Abu Dhabi.

Commenting on the draft agreement, HE Khalid Al Bustani, Executive Director for International Financial Relations, Ministry of Finance said: “The UAE is a leading country to have signed the most agreements to avoid double taxation. These agreements bring about a positive impact on investment promotion, economic cooperation and trade between the UAE and other countries. The number of such agreements that the UAE has signed with various countries has now reached 49.”

According to the draft agreement, governmental institutions are exempted from all types of tax on any income. In addition the agreement reduces tax on private investment from 17.5 per cent to 5 per cent. It also gives investors in the UAE other financial benefits and includes a complete taxation exemption of income derived from aviation.

Income taxes include taxes on total income, elements of income and on gains generated from movable and immovable property or funds.

The volume of the UAE’s non – oil exports to Bangladesh has increased from AED 79 million in 2007 to AED 107 million in 2008.

“This draft agreement will enhance the trade partnership between the two countries and ease the tax burden on the states’ investments in its public and private sectors. It also facilitates the movement of capital and goods in addition to encouraging joint investments between the two countries. It is in harmony with the vision of MOF with regard to increasing cooperation and development of economic relations with other countries across the world. The agreement takes into consideration and increases benefits to the national economy”, HE Khalid Al Bustani added.