DoubleTaxationPakistan – Bangladesh tax treaty: residence, 183 days, rates
Convention between the Government of the Islamic Republic of Pakistan and the Government of the People's Republic of Bangladesh for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (signed on 15 October 1981)
- Signed: 15/10/1981
- In force since: 08/07/1987
- Official text
If both countries treat you as resident
- Residence article of the 1981 Convention. Its text was not read for this package; the steps below follow the standard OECD order (permanent home, centre of vital interests, habitual abode, nationality, mutual agreement) and must be checked against the FBR or NBR text. Art. 4 Pakistan–Bangladesh Convention (1981) — residence
- Pakistan lists as covered tax agreements, among others: China — Agreement signed 15-11-1989, in force 27-12-1989, with protocols signed 19-06-2000 (in force 11-10-2000), 17-04-2007 (in force 17-04-2007) and 08-12-2016 (in force 24-04-2017); Japan — Convention signed 23-01-2008, in force 09-11-2008; Bangladesh — Convention signed 15-10-1981, in force 8/7/1987. India is not listed. Pakistan — MLI position at deposit, list of Covered Tax Agreements (OECD)
- NBR lists 43 agreements, Pakistan at serial 25 (PDF Bangladesh_Pakistan.pdf), published 27.04.2026. NBR — list of double taxation avoidance agreements (Bangladesh)
- FBR lists the treaties with Bangladesh (original only), China (original and «as modified by MLI», effective 1 September 2022) and Japan (original and «as modified by MLI», effective 1 April 2021); India is not listed. FBR — Bilateral full scope treaties
- Standard wording: if the centre of vital interests cannot be determined, or if the individual has no permanent home available in either State, he is deemed a resident of the State in which he has an habitual abode. Art. 4 Pakistan–Bangladesh Convention (1981) — habitual abode
- Centre of vital interests: the State with which your personal and economic relations are closer. Art. 4 Pakistan–Bangladesh Convention (1981)
- Standard wording: habitual abode in both States or in neither — the State of nationality; national of both or of neither — mutual agreement of the competent authorities. Art. 4 Pakistan–Bangladesh Convention (1981) — nationality and mutual agreement
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 16(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 120 days in the tax year. | Art. 7, Art. 15 |
| Pension | Only the country of residence. | Art. 19(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. | Art. 11(2) |
| Interest (deposits, bonds, loans) | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 12(2) |
| Royalties (copyright, licences) | Source country: at most 15%; the country of residence relieves double taxation. | Art. 13(2) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly from real estate: the same. Other property, including shares: only the country of residence. | Art. 14 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 22 |
How double taxation is relieved
- Bangladesh: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(1)
- Pakistan: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(2)
Data checked: 10/11/2026. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.