Income Tax at a Glance - National Board of Revenue

For retarded taxpayers, tax payable for theFirst 2,50,000/- NilNext 3,00,000/- 10%Next 4,00,000/- 15%Next 3,00,000/- 20%Rest Amount 25%Minimum tax for any individual assessee is Tk. 2,000Non-resident Individual 25%(other than non-resident Bangladeshi)On Dividend income 20%For CompaniesPublicly Traded Company 27.5%Non-publicly Traded Company 37.5%Bank, Insurance & Financial Company 42.5%Cigarette manufacturing company (not listed with stock exchange) 42.5%Cigarette manufacturing company (listed with stock exchange) 35%Mobile Phone Operator Company 45%Publicly Traded Mobile Operator Company 35%If any publicly traded company (excluding Mobile Operator Company) declares more than 20% dividend, 10% rebate on totaltax allowed.Tax Rebate for investment :Rate of Rebate:Amount of allowable investment is either actual investment in a year or up to 20% of total income or Tk. 100,00,000/-whichever is less. Tax rebate amounts to 10% of allowable investment.Types of investment qualified for the tax rebate are :- Life insurance premium , Contribution to deferred annuity , Contribution to Provident Fund to which Provident Fund Act, 1925 applies , Self contribution and employer's contribution to Recognized Provident Fund , Contribution to Super Annuation Fund , Investment in debenture or debenture stock, Stocks or Shares, acquired through Initial Public Offering (IPO), Contribution upto Tk 60,000 to deposit pension scheme sponsored by any scheduled bank, Contribution to Benevolent Fund and Group Insurance premium , Contribution to Zakat Fund , Donation to charitable hospital approved by National Board of Revenue , Donation to philanthropic or educational institution approved by the Government , Donation to socio-economic or cultural development institution established in Bangladesh by Aga KhanDevelopment Network ,

Le temps des puissancesEspoir d’Europel’ouverture est là, déjà effective. La vraie questionest : que fait-on pour que ce nouvel espace soitutile à nos entreprises, à nos entrepreneurs et àla société française ? Nous avons pris cette initiativecentrée sur l’information et la sensibilisationen liaison d’ailleurs avec les membres du Gouvernementqui sont concernés, et nous avonsentrepris une politique de contacts avec les paysprochainement entrants dans l’Europe. Avecquelques-uns de mes collègues et en liaisonavec nos ambassadeurs, nous avons déterminé,avec François Loos, les pays cibles par lesquelson devait commencer. Nous allons nous rendreen Pologne, en Tchéquie, en Slovénie, accompagnésde quelques présidents de Chambres etd’entrepreneurs pour nouer des liens et ouvrirles portes, pour éviter que la France ne soiten retard. C’est une première démarche pragmatiquequi consiste à dire : la concurrence vas’accentuer, nous rencontrerons des problèmesavec les fonds structurels,mais de toutefaçon cela va se faire.Alors comment faitonpour que ce soitle plus profitablepossible ?Renforcer les liensavec les paysqui partagentla même visionde l’EuropeJ’attire néanmoinsl’attention, y comprisde notre Ministreet des parlementaires,sur le fait qu’ily a un risque dansl’harmonisation descharges et des servitudesadministratives. J’ai entendu un responsableéconomique dire qu’il faut que nos entreprisesen profitent pour aller s’implanter là-bas ; ce quiest certes un projet louable, mais je ne suis passi sûr que les salariés de nos entreprises apprécieront.Voyons plutôt comment on peut à la foisnouer des liens et produire sur place, touten veillant à minimiser les effets destructeurspour l’emploi en France.Il est essentiel de renforcer les liens avec les paysavec lesquels nous partageons à l’évidencela même vision de l’Europe, notamment avecles Allemands. Nous avons pris l’initiative pournous rapprocher des Italiens, des Espagnols etdes Allemands, pour voir entre chefs d’entrepriseet entre Chambres de Commerce ce que nouspourrons faire ensemble. Le dernier point quim’a frappé, et auquel je suis particulièrementattentif, c’est tout ce qui concerne le bassinméditerranéen et ce qu’on peut appeler le Sud,et en tout cas la France. Quand vous comparezla planisphère avec la dimension des pays enfonction de leur PIB, et la même planisphèreavec la dimensiondes pays en fonctionde leur démographie,tout lemonde comprendque nous sommesface à un véritableproblème, conséquencedu choc dedeux dépressions :dépression démographiqueau Nord,dépression économiqueau Sud. Iln’y aura pas d’issuesatisfaisante pour l’Europe en général, et pourla France en particulier, si nous n’engageons pasun énorme effort d’appui au développement économiquede l’Afrique et notamment du Maghreb.111

Appeal against the order of DCT :A taxpayer can file an appeal against DCT's order to the Commissioner (Appeals)/Additional or Joint Commissioner of Taxes(Appeals), to the Taxes Appellate Tribunal against an Appeal order and to Commissioner of Taxes of the respective taxes Zonefor the revision of DCT's order.Tax withholding functions :In Bangladesh withholding taxes are usually termed as Tax deduction and collected at source. Under this system both privateand public limited companies or any other organization specified by law are legally authorized and bound to withhold taxes atsome point of making payment and to deposit the same to the Government Exchequer. The taxpayer receives a certificate fromthe withholding authority and gets credits of tax against assessed tax on the basis of such certificate.Heads of Income Subject to deduction or collection of income taxat source with specified rates of deduction.TableSl Head of Withholding authority Withholding rate/ rates of tax Limitationwithholding1. Salaries [section-50] Any person responsiblefor making suchpayment.Average of the rates applicableto the estimated total income ofthe payee under this head.2. Discount on the realvalue of BangladeshBank bills. [section-50A]Any person responsiblefor making suchpayment.Maximum rate3. Interest on securities[section-51]4. Payment tocontractors & subcontractors[section-52] [rule-16]Any person responsiblefor issuing any securityAny person responsiblefor making suchpayment.10% This shall not apply to the Treasurybond or Treasury bill issued by theGovernment or to any payment onaccount of interest payable ondebentures issued by or on behalfof a local authority or a company.Upto Tk. 2,00,000/--Nil.From 2,00,001 to Tk 5,00,000/-------------1%From 5,00,001 to Tk.15,00,000/- ------- 2..5%From 15,00,001 to Tk.25,00,000/- ------- 3..5%From 25,00,001 to Tk.3,00,00,000/- ------4%where thepayment exceeds Tk.3,00,00,000 ----------5%in case of oil supplied by oilmarketing companiesupto Tk 2,00,000 -- Nil5. Payment onindentingcommission orshipping agencycommission.[section-52, rule-17]6. Fees for Doctors[section-52A(1)]Any person responsiblefor making suchpayment.The principal officer ofa company or the chiefexecutive of any NGOor trust responsible forwhere thepayment exceeds Tk 2,00,000 -------- 0.75%on indenting commission -----------------------7.5%on shipping agency commission---------5%10%

7. Royalty or technicalknow-how fee[section-52A(2)]8. Fees for professionalor technical servicesor any serviceapplying forprofessionalknowledge [section-52A(3)]9. Payment of certainservices likestevedoring agency,private securityservice or anyservice other thanthe servicesmentioned inChapter VII of ITO[section-52AA]10. Clearing andforwarding agents[section 52AAA]11. Cigarettesmanufacturing[section 52B]12. Compensationagainst acquisitionof property [section52C]13. Interest on savinginstruments [section52D]14. BrickManufacturer[section 52F]making such payment.The government or any 10%other authority,corporation or body orany company or anybanking company orany insurance companyor any co-operativebank or any NGOresponsible for makingsuch payment.Do 10% Person certified by NBR havingnon assessable income or personhaving income exempted from taxThe government or any 10%other authority,corporation or body orany company or anybanking company or anyinsurance company orany co-operative bank orany NGO responsiblefor paying anycommission to astevedoring agency ormaking any payment toa private securityservice.Commissioner of 10%Customs.Any person responsiblefor selling banderols toany manufacturer ofcigarettes.Any person responsiblefor payment of suchcompensationAny person responsiblefor making suchpaymentAny person responsiblefor issuing anypermission or renewalof permission formanufacture of bricks.6% of the value of the banderols(a). 2% of the amount of suchcompensation against theimmovable property situatedwithin City Corporation,Paurashava or CantonmentBoard(b). 1% of the amount of suchcompensation against theimmovable property situatedoutside the jurisdiction ofCity Corporation,Paurashava or CantonmentBoard5% No deduction to be made if thesaving instrument is purchased byany approved superannuation fundor pension fund of gratuity fund orany recognized provident fund orany workers' profit participationTk.30,000/- for one sectionbrick field.Tk. 45,000/- for two sectionbrick field.fund.15. Commission of letterof credit [sectionAny person responsiblefor opening letter ofTk. 60,000/- for three sectionbrick field.5%

52I] credit.16. Renewal of tradelicense by CityCorporation orPaurashava [section52K]17. Freight forwardagency commission[section 52M]18. Rental PowerCompany[section 52N]19. Foreign technicianserving in diamondcutting industries[section 52O]20. Convention hall,convention centreetc. [section 52P]21. Service charges,remunerations,consulting fees,commissionsremitted fromabroad for servicesworks done bypersons living in thecountry[section 52Q]22. Importer [section53]23. House property[section 53A] [rule17B]24. Shipping business ofa resident [section53AA]25. Export of manpower[section 53B, rule-17C]City Corporation orPaurashava.Any person responsiblefor making suchpayment.Bangladesh PowerDevelopment Boardduring payment to anypower generationcompany against powerTk. 500/- for each trade license.15%4%purchase.Employer. 5% This rate is for 3 years from theappointment of such foreigntechnician and appointment to becompleted by 30 June 2010.The Government or anyauthority, corporationor body or anycompany or anybanking company orany co-operative bankor any NGO run orsupported by anyforeign donation or anyuniversity or medicalcollege or dentalcollege or engineeringcollege as user.Commercial banks orfinancial institutions.The Commissioner ofCustoms.The Government or anyauthority, corporationor body or anycompany or anybanking company orany co-operative bankor any NGO run orsupported by anyforeign donation or anyuniversity or medicalcollege or dentalcollege or engineeringcollege as tenant.Commissioner ofCustoms or any otherauthority dulyauthorised.The Director General,Bureau of Manpower,Employment andTraining.5%10% No deduction to be made againstremittance sent by wage earners'.5% Tax at source will not be withheldfor items prescribed in rule 17A.Up to Tk. 20,000/-per month [p. m] ---- NilFrom Tk 20,001/- to Tk.40,000/- p.m. -------3%More than Tk 40,000/- p.m.---5%5% of total freight received orreceivable in or out ofBangladesh.3% of total freight received orreceivable from servicesrendered between two or moreforeign countries.10%This does not apply if the owner ofhouse property is given a certificateby the DCT regarding not havingany assessable income during theyear or is having income otherwiseexempted from payment of incometax.

26. Export of Knit-wearand wovengarments, terrytowel, jute goods,frozen food,vegetables, leathergoods, packed food[section 53BB]27. Member of StockExchanges [section53BBB]28. Export or any goodsexcept knit-wearand wovengarments, terrytowel, jute goods ,frozen food,vegetables, leathergoods, packed food[section 53BBBB]29. Goods or propertysold by publicauction [section53C][rule 17D]30. Courier business of anon-resident [section53CC]31. Payment to actors,actresses, producersetc [section 53D][rule 17E]32. Commission,discount or fees[section 53E]33. Commission orremuneration paid toagent of foreignbuyer[section 53EE]34. Interest on savingdeposits and fixeddeposits[section 53F]35. Real estate or landdevelopmentbusiness[section 53FF]Bank.The Chief ExecutiveOfficer of stockexchange.Bank.Any person makingsale.Any person being acompany working aslocal agent of a nonresidentcouriercompany.1. The personproducing the film,drama, advertisement,TV/radio programmeor purchasing suchprogrammes.Any person being acorporation, bodyincluding a companymaking such payment.0.60% of the total exportproceeds.0.10% --0.70% of the total exportproceeds.5% of sale price. --15% on the amount of servicecharge accrued.10% --10%Bank. 7.5%Any person responsiblefor making suchpayment.Any person responsiblefor registering anydocument for transferof any land or buildingor apartment.No deduction or deduction at areduced rate to be made if anexporter produces certificate fromNBR regarding having fully orpartly exempted income.No deduction or deduction at areduced rate to be made if anexporter produces certificate fromNBR regarding having fully orpartly exempted income.--10% This shall not apply on the amountof interest or share of profit arisingout of any deposit pension schemesponsored by the government or bya schedule bank with prior approvalof the Government.In case of Building/Apartmentconstructed for residentialpurchases:(i) Tk. 2,000 per square meter forbuilding or apartmentsituated at Gulshan ModelTown,Banani,Baridhara,Motijheel andDilkusha. Tk 8,000/- forthose other than residentialpurposes;(ii) Tk. 1,800 per square meterfor building or apartmentsituated at Dhanmandi,Defense Officers HousingSociety (DOHS),Mahakhali, LalmatiaHousing Society, UttaraModel Town, Bashundhara

Residential Area, DhakaCantonment Area, KarwanBazar Commercial Area ofDhaka and, Panchlaish,Khulshi Residential Area,Agrabad and Nasirabad ofChittagong. Tk 6,000/- forthose other than residentialpurposes;36. Insurancecommission[section 53G]37. Fees of surveyors ofgeneral insurancecompany[section 53GG]38. Transfer of property[section 53H]39. Interest on deposit ofpost office & savingbank account[section 53I]40. Rental value ofvacant land or plantor machinery[section 53J] [rule17BB]41. Advertisement ofnewspaper ormagazine or privatetelevision channel[section 53K]Any person responsiblefor paying suchcommission to aresident.Any person responsiblefor paying such fees toresidentAny person responsiblefor registering anydocument of a person.Any person responsiblefor making suchpayment.The Government or anyauthority, corporationor body including itsunits, the activities orany NGO, anyuniversity or medicalcollege, dental college,engineering collegeresponsible for makingsuch payment.The Government or anyother authority,corporation or body orany company or anybanking company orany insurance company(iii) Tk. 800 per square meterwhere the building orapartment is situated inareas other than areasmentioned in sub-clause (i)& (ii). Tk 2,000/- for thoseother than residentialpurposes.In case of Land:2% of deed value in case ofproperty situated in any citycorporation, paurashava orcantonment board.1% of deed value in case ofproperty situated in places otherthan any city corporation,paurashava or cantonment board.5%15%2% of deed value in case ofproperty situated in Dhaka,Narayanganj, Gazipur, CDA,KDA, RDA, any citycorporation, paurashava orcantonment board.1% of deed value in case ofproperty situated in areas otherthan those mentioned above.This shall not apply to sale by abank or a financial institution as amortgagee empowered to sell;mortgagee of any property to theBHBFC; mortgagee to any bank ofany property; transfer of anyagricultural land in Bangladeshexcept land situated in any areamentioned in paragraph [i] or [ii],of sub-clause [c] or clause [15] ofsection 2;10% This shall not apply if the totalamount of interest is paid to suchpayee or class of payees asspecified by the Board.Up to Tk. 15,000/- per month ---------------Nil.From Tk 15,001/- to Tk30,000/- per month –3%More than Tk. 30,000/- permonth ----------5%3%.

42. Collection of taxfrom sale of share ata premium over facevalue [section 53L]43. Collection of taxfrom transfer ofshares by thesponsor shareholdersor placement holdersof a company listedon stock exchange[section 53M]44. Dividends[section 54]or any cooperative bankor any NGO or anyuniversity or medicalcollege or dentalcollege or engineeringcollege responsible formaking such payment.Securities & ExchangeCommissionSecurities & ExchangeCommission/StockExchangeThe principal officer ofa company.3%5%Resident/ non-residentBangladeshi company ----- 20%Resident/ non-residentBangladeshi person other thancompany -----10%If the DCT certifies, deduction inthis regard may not be made ormade at a rate less than themaximum rate.45. Income from lottery[section 55]46. Income of nonresidents[section 56]Any person responsiblefor making suchpayment.Any person responsiblefor making suchpayment.Non-resident (other thanBangladeshi non-resident)person other than a company---25%.20%Non resident company at therate applicable to a company.Non-resident non-Bangladeshiperson other than a company ---25%Non-resident Bangladeshiperson at the rate applicable to aresident.Major areas for final settlement of tax liability :Tax deducted at source for the following cases is treated as final discharge of tax liabilities. No additional tax is charged orrefund is allowed in the following cases:-Supply or contract workBand rolls of hand made cigarettesImport of goodsTransfer of propertiesExport of manpowerReal Estate BusinessExport value of certain items including knit and woven garments.Local shipping businessRoyalty, technical know-how feeInsurance agent commissionAuction purchasePayment on account of survey by surveyor of a general insurance companyClearing & forwarding agency commissionTransaction by a member of a Stock ExchangeCourier businessCompensation against acquisition of property

Premium value over face value of a shareIncome from transfer of securities of a sponsor shareholder.Winning from lotteries.Tax Recovery System :In case of non-payment of income tax demand the following measures can be taken against a taxpayer for realization of tax:-Imposition of penalty,Attachment of bank accounts, salary or any other payment,Filing of Certificate case to the Special Magistrate.Advance Payment of Tax :Every taxpayer is required to pay advance tax in four equal installments falling on 15th September; 15th December; 15th Marchand 15th June of each year if the latest assessed income exceeds Taka four lakh. Penalty and interest are imposed for default inpayment of any installment of advance tax.Fiscal incentives :Following are fiscal incentives available to a taxpayer:-a) Tax holiday : Tax holiday is allowed for industrial undertaking and physical infrastructure facility established between1st July 2011 to 30th June 2013 in fulfillment of certain conditions.Industrial Undertaking Eligible for Tax holiday :(i) (a) active pharmaceuticals ingredient industry and radio pharmaceuticals industry;(b) barrier contraceptive and rubber latex;(c) basic chemicals or dyes and chemicals;(d) basic ingredients of electronic industry (e.g resistance, capacitor, transistor, integrator circuit);(e) bio-fertilizer;(f) biotechnology;(g) boilers;(h) compressors;(i) computer hardware;(j) energy efficient appliances;(k) insecticide or pesticide;(l) petro-chemicals;(m) pharmaceuticals;(n) processing of locally produced fruits and vegetables;(o) radio-active (diffusion) application industry (e.g. developing quality or decaying polymer or preservation offood or disinfecting medicinal equipment);(p) textile machinery;(q)(q)tissue grafting; orany other category of industrial undertaking as the Government may, by notification in the official Gazette,specify.Physical Infrastructure Eligible for Tax holiday:(a) deep sea port;(b) elevated expressway;(c) export processing zone;(d) flyover;(e) gas pipe line,(f) Hi-tech park;(g) Information and Communication Technology (ICT) village or software technology zone;(h) Information Technology (IT) park;(i) large water treatment plant and supply through pipe line;(j) Liquefied Natural Gas (LNG) terminal and transmission line;(k) mono-rail;(l) rapid transit;(m) renewable energy (e.g energy saving bulb, solar energy plant, windmill);(n) sea or river port;(o) toll road;(p) underground rail;(q) waste treatment plant; or(r) any other category of physical infrastructure facility as the Government may, by notification in the officialGazette, specify.b) Accelerated depreciation: Accelerated depreciation on cost of machinery is admissible for new industrial

undertaking in the first year of commercial production 50%, in the second year 30% and in the third year 20%.c) Income derived from any Small and Medium Enterprise (SME) engaged in production of any goods andhaving an annual turnover of not more than taka twenty four lakh is exempt from tax.d) Industry set up in EPZ and commencing commercial production or operation before December 31, 2011 isexempt from tax for a period of 10 years from the date of commencement of commercial production. Industryto be set up after January 1, 2012 will enjoy tax holiday for five years.e) Income from poultry is exempt from tax up to 30th June, 2013, subject to investing at least 10% of theexempted income that exceeds one lakh and fifty thousand Taka, in government securities or bonds.f) Income derived from export of handicrafts is exempted from tax up to 30th June, 2013.g) An amount equal to 50% of the income derived from export business is exempted from tax.h) Listed companies are entitled to 10% tax rebate if they declare dividend of 20% or more.i) Income from Information Technology Enabled Services (ITES) business is exempted up to 30th June, 2013.(j) Income of a private power generation company subject to certain conditions included in private sectorpower generation policy of Bangladesh is exempted from tax for 15 years form the day of commencementof commercial production before June 30, 2013. Income of a private power generation companycommencing commercial production from July, 2013 will enjoy tax holiday for 10 years subject to certainlimits and conditions.Avoidance of Double Taxation Agreement :There are agreements on avoidance of double taxation between Bangladesh and 28 countries which are:-(1) United Kingdom of Great Britain and Northern Ireland, (2) Singapore (3) Sweden (4) Republic of Korea (5) Canada (6)Pakistan (7) Romania (8) Sri Lanka (9) France (10) Malaysia (11) Japan (12) India (13) Germany (14) The Netherlands (15)Italy (16) Denmark (17) China (18) Belgium (19) Thailand (20) Poland (21) Philippines (22) Vietnam (23) Turkey (24)Norway (25) USA (26) Indonesia (27) Switzerland.

List of the Commissioner's/DG's (Income Tax Wing)Sl. Name of theName of the Phone No. Fax No. E-mailNo.OfficeOfficer(1) (2) (3) (4) (5) (6)1. CommissionerTaxes Zone-1, DhakaMr. Dr. MahbuburRahman83629448333855(PA)2. CommissionerMs. Rahela831 2416Taxes Zone-2, Dhaka Chowdhury3. CommissionerMr. Md Sirajul Islam 831 2402Taxes Zone-3, Dhaka4. CommissionerMr. Dr. Md. Mahbabur 933 6788Taxes Zone-4, Dhaka Rahman5. CommissionerMr. Md. Abdur Razzak 934 6364Taxes Zone-5, Dhaka6. CommissionerMr. Pervez Iabal 831 6049Taxes Zone-6, Dhaka7. CommissionerMr. Syed Md. 835 0603Taxes Zone-7, Dhaka Mahbubur Rahman8. CommissionerMr. Kalipada Halder 934 0075Taxes Zone-8, Dhaka9. Commissioner (incharge)Large Taxpayer's Unit(LTU)10. CommissionerCentral Survey Zone,Dhaka11. CommissionerTaxes Zone-1,Chittagong12. CommissionerTaxes Zone-2,Chittagong13. CommissionerTaxes Zone-3,Chittagong14. CommissionerTaxes Zone-Rajshahi15. CommissionerTaxes Zone-Khulna16. CommissionerTaxes Appeal Zone-1,Dhaka17. CommissionerTaxes Appeal Zone-2,Dhaka18. CommissionerTaxes Appeal Zone-3,Dhaka19. CommissionerTaxes Appeal Zone-ChittagongMr. Md. Abdul BatenAdd. CommissionerMr. Sanjit KumarBiswasMr. RamendraChandra BasakMr. Md. HabiburRahman Akhand831 2472717 4224031-715190031-710840Mr. Sultan Mahmud 031-725897Mrs. Rokeya Khatun 0721-812320Mr. Md. Dabir Uddin 041-760669Mr. Mir Mushtaq Ali 933 7533Mrs. Rowshan AraAkhter833-3116Mr. Liakat Ali Khan 833 3116Mr. Haidar Khan 031-714217

20. CommissionerTaxes Appeal Zone-Khulna21. Director GeneralCentral Intelligence Cell22. Director GeneralTax Inspection, Dhaka23. Director GeneralTax Training Academy24. CommissionerTaxes Zone-Rangpur25. CommissionerTaxes Zone-Barisal26. CommissionerTaxes Zone-SylhetMr. Chinmoy ProshunBiswas041-760349Mr. Md. Alauddin 833 1011Mr. Kanon Kumar Roy 835 9444Mr. Md. Meftahuddin 933 3520KhanMr. Balal Uddin 0521-61772Mr. Radhesam Roy 0431-72202Mr. M.A Jabbar 0821-716403