Dhaka July 13, 1993
With reference to Article 3 of the Convention signed today between the Kingdom of the Netherlands and the People's Republic of Bangladesh for the Avoidance of Double Taxation with respect to Taxes on Income, I have the honour to explain that the conclusion of this Convention does not affect the position of the Kingdom of the Netherlands concerning the Maritime boundaries of the People's Republic of Bangladesh.
Regarding the taxation of income from ships, Bangladesh agreed to reopen negotiations with the Netherlands with a view to according treatment that is similar to any more favourable treatment of income from ships granted by Bangladesh in a treaty or other agreement with another country after the signing in Dhaka of the Memorandum of Understanding by the Heads of Delegations on January 16th, 1992.
Regarding the taxation at source on interest Bangladesh also agreed to reopen negotiations with the Netherlands with a view to according treatment that is similar to any more favourable treatment of interest received by a bank or any other financial institution (including an insurance company) granted by Bangladesh in a treaty or other agreement with another country.
I would be grateful if you would confirm that you are in agreement with the above. If so, this Note and Your Excellency's Note of Reply shall be regarded as an integral part of this Convention and will enter into force on the date of entry into force of the Convention.
Permit me, Excellency, to renew to you the assurances of my highest consideration.
(sd.) H. GAJENTAAN
Ambassador of the Kingdom of
The Netherlands to Bangladesh.
Dr. Akbar Ali Khan
Internal Resources Division
Ministry of Finance,
Government of the People's
Republic of Bangladesh.