August 8, 2006
HP-49

Treasury Announces Entry into Force of U.S.-Bangladesh Income Tax Treaty

WASHINGTON, DC – The Treasury Department announced today that Deputy Treasury Secretary Robert M. Kimmitt and Finance Minister of the People's Republic of Bangladesh Md. Saifur Rahman exchanged instruments of ratification for the U.S.-Bangladesh Income Tax Convention on August 7, 2006.  This exchange of instruments brings the tax treaty into force.

The United States and Bangladesh signed the tax treaty at a ceremony in Dhaka, Bangladesh on September 27, 2004. The United States Senate gave advice and consent to ratification of the treaty on March 31, 2006.
At the exchange, Deputy Secretary Kimmitt stated, "Treasury is pleased to bring this agreement into force on behalf of the United States, as it will help to reduce tax barriers to cross-border investment as well as stimulate new investment and development – all critical components to long-term U.S. economic strength and sustainability." 

With the entry into force of the treaty on August 7, 2006, the treaty generally will be effective for taxable periods beginning on or after January 1, 2007. The provisions of the treaty relating to withholding taxes will be effective for amounts paid or credited on or after October 1, 2006.