2013 2014 PDF

Bangladesh Tax Handbook 2013-2014 1
Index Index
Page
Page
Major Changes in Bangladesh Taxation Laws 2013-2014
1. Tax Exemption Limit 9
2. Personal Tax Rate Structure 9
3. Minimum Tax (Individual) 10
4. Changes regarding Surcharge on individual 10
5. Minimum tax for firm subject to gross receipts 10
6. Withdrawal of tax on share premium 10
7. Changes in Company Tax Rates 10
8. Special tax treatment in respect of investment in residential building and 10

apartment
9. Amortization of license fees 11
10. House Rent allowance receivable in cash 12
11. Conveyance allowance receivable in cash with no conveyance facility 12
12. Changes regarding the extent of admissible allowance 12
13. Tax holiday of newly established industrial undertakings 12
14. Amendments in Tax Holiday Scheme 13
15. Extension of areas for TDS from certain services 13
16. Changes of rate of Withholding Tax at source 14
17. Return of income-in simplified return form 16
18. Power of giving order for not removing property 16
19. Reference to High Court Division 17
20. Amendment in Sixth Schedule, Part-A 17
21. Extension of time to avail reduced tax rate for certain industrial companies 17
22. Tax exempted income as per different SROs 18
23. Amendment of Alternative Dispute Resolution (ADR) 18
24. Procedure for spot assessment 18
25. Amendment of Tax-payers Identification Number 19
26. Summary of VAT Changes in FY: 2012-2013 20
Various Tax Incentives allowed as per Tax Laws
1. Tax incentives for Expatriate 23

2. Tax Incentives on Jute Industry, RMG & Textile Industry 23
2 Bangladesh Tax Handbook 2013-2014 Bangladesh Tax Handbook 2013-2014 3

Index Index
Page
Page
24. Capital Gains 45
3. Tax Incentives on Fisheries, Poultry, Dairy Farming etc. 23
25. Exemption of Capital Gains from tax 46
4. Tax Incentives on Real Estate and Land development Industry 23
26. Capital Gain Tax 47
5. Tax Incentives on Information & Technological Industry 23
27. Income from Other Sources 47
6. Tax Incentives on investment in Stock Exchange 24
28. Set-Off of Losses 48
7. Tax Incentive on money borrowed from abroad 26
29. Carry forward of loss 48
8. Incentive for investment in residential building and apartment 26
30. Carry forward of Depreciation Allowance 48
Summary of Taxation Laws 2013-2014
Income Tax 31. Income fully exempted from Tax subject to fulfillment of prescribed conditions 48
and limitations
1. Definitions 29
32. Tax Holiday for newly established industrial undertaking, Tourist Industry and 50
2. Charge of Income Tax 30 Physical Infrastructure facility set-up between the period of July 2011 to June 2015
3. Charge of Surcharge 31 etc. in certain cases
4. Charge of Additional Tax 31 33. List of eligible sectors for Tax Holiday 53
5. Charge of Excess Profit Tax 31 34. Tax Holiday for Hospitals 54
6. Charge of Minimum Tax 31 35. Exemption from tax of newly established physical infrastructure facility set up 54
7. Income Exemption Limit 32 between the period July 2011 and June 2015, etc. in certain cases
8. Personal Tax Rate Structure 32 36. Exemption of income of cooperative societies 56
9. Minimum Tax (Individual) 33 37. Investment Allowance for Tax Rebate 56
10 Incidence of Tax on Non-Resident 33 38. Rates of Corporate Tax 57
11. Scope of Total Income 33 39. Normal Depreciation Allowance and Amortization 60
12. Income Deemed to Accrue or Arise in Bangladesh 34 40. Amortization of License fees 62
13. Deemed Income 34 41. Initial depreciation 62
14. Special tax treatment in respect of investment in residential building and apartment 36 42. Accelerated Depreciation 62
15. Special tax treatment in respect of investment in the purchase of bond under 37 43. Withholding Tax / Tax Deducted at Source (TDS) 63
Bangladesh Infrastructure Finance Fund (BIFF) 44. Rates of tax at source 64
16. Special tax treatment in respect of investment in the purchase of Bangladesh 37 45. Form of Return of Withholding Tax 70
Government Treasury Bond 46. Advance Payment of Tax 76
17. Voluntary disclosure of income 37 47. Payment on the Basis of Return 76
18. Income from Salary 38 48. Mode of payment of Tax by assessee 76
19. Income from Interest on Securities 40 49. Return of statement of lifestyle 76
20. Income from House Property 40 50. Filing of Return of Income and Statement 77
21. Income from Business or Profession 41 51. Return of withholding tax 78
22. Allowable Deductions on income from Business or Profession 41 52. Obligation to furnish Annual Information Return 78
23. Deductions are not admissible in certain circumstances 44

Index
Income Tax
Page
53. Concurrent jurisdiction 78
54. Assessments 79
55. Some final settlement of tax liability 80
56. Assessment on the basis of Report of a Chartered Accountant 81
57. Assessment and computation of Income of Contractor of an Oil Company 81
58. Assessments under other sections 82
59. Transfer Pricing 82
60. Determination of income from international transaction having regard to arms 83
length price
61. Transfer Pricing Officer 83
62. Maintenance and keeping of information, documents and records 83
63. Report from an accountant to be furnished 83
64. Provision of penalty on transfer pricing 84
65. Determination of arms length price under section 107C 84
66. Factors to be considered in judging comparability 84
67. Most appropriate method 85
68. Information and documents to be kept and maintained under section l07E 85
69. Additional powers of enquiry and production of documents 85
70. Power of giving order for not removing property 85
71. Avoidance of Double Taxation 86
72. Relief in respect of Foreign Income 86
Value Added Tax
73. Who will deduct VAT 89
74. Where to deposit the deducted VAT? 89
75. Scope of VAT and its specified rates 89
Gift Tax
76. Gift Tax 99
77. Exemption from Gift Tax 99
78. Provisions of the Gift Act shall NOT apply in certain cases 100
79. Return of Gift Tax 100
80. Rates of Gift Tax 100

Income Tax Income Tax
1. Tax Exemption Limit
The ceiling of tax exempted income for the individual assessee has been enhanced from Taka
200,000 to Taka 220,000, while this limit for the individual female, persons aged 65 years &
more has been enhanced from Taka 225,000 to Taka 250,000 and limit for physically challenged
assessee has also been enhanced from Taka 275,000 to 300,000 with effect from 01 July 2013.
2. Personal Tax Rate Structure
The person defined under section 2(46) of Income Tax Ordinance (ITO) 1984, every individual
assessee (including Non-resident Bangladeshi), firm (partnership or single), association of
persons (AOP), Hindu undivided family (HUF), artificial juridical persons and Non-Government
Organization (NGO) shall have to pay income tax on their total income according to 5 tier
income slabs and tax rates for the Financial Year 2012-2013 and Assessment Year 2013-2014.
The following table entails comparable scenario of 5 tier income slabs and tax rates for the two
consecutive Financial Years 2012-2013 and 2011-2012:
Financial Year 2012-2013 Financial Year 2011-2012

(Assessment Year 2013-2014) (Assessment Year 2012-2013)
Tax Tax
Income Slabs Income Slabs
Rates Rates
i. On the first Taka 220,000 of Nil i. On the first Taka 200,000 of Nil
total income of assessee total income of assessee
On the first Taka 250,000 Nil On the first Taka 225,000 Nil
of total income for Female, of total income for Female,
persons aged 65 years & persons aged 65 years &
above assessee above assessee
On the first Taka 300,000 of Nil On the first Taka 275,000 of Nil
total income of physically total income of physically
challenged assessee challenged assessee
ii. On the next Taka 300,000 of 10% ii. On the next Taka 300,000 of 10%
total income total income
iii. On the next Taka 400,000 of 15% iii. On the next Taka 400,000 of 15%
iv. On the next Taka 300,000 of 20% iv. On the next Taka 300,000 of 20%
v. On the balance of total 25% v. On the balance of total 25%
income income
Non-resident (Foreign) 25% Non-resident (Foreign) 25%
assessee assessee

3. Minimum Tax (Individual) building or apartment for residential purpose and pays tax on the basis of measurement
before the assessment for the relevant assessment year in which the investment is completed,
Minimum tax for individual assessee has been changed on the basis of location. If tax then tax authority will not raise question on the source of investment. Area, measurement and
payable becomes less than Taka 3,000 or Taka 2,000 or Taka 1,000 or negative after adjusting tax rates of such residential building or apartment are as follows:
Investment Tax Credit, individual assessee has to pay minimum tax as follows:
Minimum tax is Taka 3,000 for resident of City Corporations Plinth area up to Plinth area more than
SL. Areas of residential building or 200 square meters, 200 square meters,
Minimum tax is Taka 2,000 for resident of District Head Quarters and Paurashavas NO. apartment Tax amount per Tax amount per
square meter (Taka) square meter (Taka)
Minimum tax is Taka 1,000 for resident of Upazillas and others
1 Gulshan Model Town, Banani, 5,000/- 7,000/-
Minimum tax exempted income for female, persons aged 65 years & more and physically Baridhara, Motijheel Commercial
challenged assessee having only agricultural income are Taka 300,000 and 350,000 Area and Dilkusha Commercial Area
respectively while for other assessee, this limit is Taka 270,000. of Dhaka
4. Changes regarding Surcharge on individual [sec: 16A] 2 Dhanmandi Residential Area, De- 4,000/- 5,000/-
fence Officers Housing Society
Surcharge @ 10% will be levied on income tax payable in case of having net assets of more (DOHS), Mahakhali, Lalmatia Hous-
than Tk. 2 crore to Tk. 10 crore in his statement of assets and liabilities, whereas the rate of ing Society, Uttara Model Town,
surcharge is 15% for assets more than value of Tk. 10 crore. Surcharge is applicable only for Bashundhara Residential Area,
individual assessee. Dhaka Cantonment, Kawran Bazar,
Bijaynagar, Segunbagicha, Nikunja
5. Minimum tax for firm subject to gross receipts more than Tk. 50 Lac [Sec: 16CCC] of Dhaka, and Panchlaish, Khulshi,
Every firm is liable to pay minimum tax @ 0.50% on gross receipts if gross receipts exceed Tk. Agrabad and Nasirabad Area of Chit-
50 Lac. This will be applicable for the Assessment Year 2013-2014. tagong
3 Other areas of City Corporations 2,000/- 3,000/-
6. Withdrawal of tax on share premium [Sec: 16E] except serial nos. 1 & 2 above
Tax @ 3% has been withdrawn on the sale of share premium over face value.
4 Areas of Paurasabhas of any district 1,000/- 1,500/-
7. Changes in Company Tax Rates headquarters
5 Upazilla and Others 700/- 1,000/-
Tax Rates as per Tax Rates as per
Types of Companies 6 If already owned a building or As per above tax As per above tax Plus
AY 2013-2014 AY 2012-2013
apartment in any City Corporation Plus extra 20% of extra 20% of above
Cigarettes Manufacturing Company (Publicly traded) 40% 35% before such investment is above calculated tax calculated tax
completed or the assessee invests
Cigarettes Manufacturing Company (Not-Publicly
45% 42.5% in two or more Buildings or
traded)
Apartments
Mobile phone operator company (Publicly traded) 40% 35%
9. Amortization of license fees is allowable business expenditure [Section#29 (1) (viiia) &
8. Special tax treatment in respect of investment in residential building and apartment Third Schedule, Para 10A]
[section # 19BBBBB]
License fees shall be amortized proportionately for two or more years. License fees mean
Source of any sum invested by any person in the construction or purchase of any residential Spectrum Assignment Fee paid by a cellular mobile phone operator. It is applicable for the
license fee paid on or after 01 July 2012.

10. House Rent allowance receivable in cash [Rule-33A] Period of Exemption Rate of Exemption
Tax exempted house rent allowance has been increased from Tk. 180,000 to Tk. 240,000. For the first and second years 100% of income
11. Conveyance allowance receivable in cash with no conveyance facility [Rule-33C] For the third year 70% of income
For the fourth year 55% of income
Tax exempted conveyance allowance has been increased from Tk. 24,000 to Tk. 30,000.
For the fifth year 40% of income
12. Changes regarding the extent of admissible allowance [Section#44, sixth schedule part-B]
For the sixth year 25% of income
Assessment Year Assessment Year For the seventh year 10% of income
Sl. Particulars
2013-2014 2012-2013
Provided that an industry engaged in the production of bio-fertilizer and petro-chemicals shall
1 Maximum Allowable investment 1.5 Crore Taka 1 Crore Taka be entitled for exemption from tax under the provisions of this section even if it is set up in the
2 % of Investment for tax rebate on 30% 20% districts of Dhaka, Gazipur, Narayanganj or Chittagong.
total income excluding employers
14. Amendments in Tax Holiday Scheme [Section#46C]
PF contribution
Subject to the provisions of this Ordinance, income, profits and gains under section 28 from
3 Actual investment Tk. 1.50 Crore or 30% of Tk. 1.00 Crore or 20% physical infrastructure facility, set up in Bangladesh between the first day of July, 2011 and
total income or actual of total income or the thirtieth day of June, 2015 (both days inclusive) shall be exempted from the tax payable
investment, whichever actual investment, under this Ordinance for ten years beginning with the month of commencement of commercial
is less whichever is less operation at the rates, below:
34 % of allowable tax rebate 15% 10% Period of Exemption Rate of Exemption
For the first and second years 100% of income
13. Tax holiday of newly established industrial undertakings [Section#46B]
For the third year 80% of income
Tax holiday of newly established industrial undertakings has been extended upto 30 June 2015
(previously it was 30 June 2013) with the following:- For the fourth year 70% of income
Industry undertaking in Dhaka and Chittagong divisions, excluding Dhaka, Narayanganj, Gazipur,
Chittagong, Rangamati, Bandarban and Khagrachari Districts will avail tax holiday benefit for For the sixth year 50% of income
a period of five years from the date of commercial production of the said undertaking: For the seventh year 40% of income
For the eighth year 30% of income
Period of Exemption Rate of Exemption
For the ninth year 20% of income
For the first and second years 100% of income
For the tenth year 10% of income
15. Extension of areas for TDS from certain services:
For the fourth year 40% of income 15.1 Deduction of tax from fees for professional and technical services [section # 52A (3)]
For the fifth year 20% of income On account of fees for professional or technical services shall be deducted or collected
as per following way:
Industry undertaking in Rajshahi, Khulna, Sylhet and Barisal divisions and Rangamati, ten per cent (10%) of such fees where the person receiving such fees furnishes
Bandarban and Khagrachari districts will avail tax holiday benefit for a period of seven years his taxpayers Identification Number (TIN) to the payer; or
from the date of commercial production of the said undertaking: fifteen per cent (15%) of such fees where the person receiving such fees fails
to furnish his Taxpayers Identification Number (TIN) to the payer.

15.2 Deduction of tax from payment of stevedoring agency and private security service
Sl. Sections Heads of Rates of withholding Rates of withholding
[section# 52AA]
No & Rules Withholding tax (AY: 2013-2014) (AY: 2012-2013)
If National Board of Revenue issues certificate in writing that the person rendering 2 53FF Real estate (i) Tk. 1,600 per square (i) Tk. 2,000 per square
such services is not likely to have any assessable income during the year or the income or land meter for building or meter for building or
is otherwise exempted from tax under any provision of the Ordinance, payment shall development apartment for residential apartment for residential
be made without any deduction or with deduction at a lesser rate for that income year business at purpose situated at Model purpose situated at Model
as per Certificate. the time of Town, Banani, Baridhara, Town, Banani, Baridhara,
registering any Motijheel Commercial Motijheel Commercial
15.3 Withdrawal from deduction of tax on Bond transactions by a member of Stock
document for Area and Dilkusha Area and Dilkusha
Exchange [Section # 53BBB]
transfer of any Commercial Area of Dhaka Commercial Area of Dhaka
Requirement of deduction of tax at source on Bond transactions made by a member land or building
of Stock Exchange has been withdrawn. Since deduction of tax at source has been or apartment (ii) Tk. 6,500 per sq meter (ii) Tk. 8,000 per sq meter
withdrawn, income on Bond transactions will not be assessed u/s 82C. building for commercial building for commercial
purpose for the areas purpose for the areas
15.4 Deduction of tax from Collection of tax from manufacturer of soft drinks [section # 52S] mentioned in (i). mentioned in (i).
Tax @ 3% of the value of soft drinks will be collected while banderols or stamps are
(iii) Tk. 1,500 per square ( iii) Tk. 1,800 per square
delivered to any manufacturer of soft drinks. The value of such soft drinks will be the
meter for building or meter for building or
value as determined for the purpose of the Value Added Tax (VAT).
apartment situated at apartment situated at
15.5 Collection of tax on sale prices of Tea sold by public auction [section # 53C, rule-17D] Dhanmandi Residential Dhanmandi Residential
Area, Defence Officers Area, Defence Officers
The person responsible for auction of tea shall collect tax at the rate of 1% [Previously Housing Society (DOHS), Housing Society (DOHS),
it was 0.50%]. Mahakhali, Lalmatia Mahakhali, Lalmatia
Housing Society, Uttara Housing Society, Uttara
15.6 Deduction or collection of tax from commission, discount or fees [section# 53E (2)]
Model Town, Bashundhara Model Town, Bashundhara
Any company, as defined in clause (20) of section 2 of the Ordinance other than oil Residential Area, Dhaka Residential Area, Dhaka
marketing company, which sells goods to any distributor or to any other persons under Cantonment, Kawran Cantonment, Kawran
a written contract at a price lower than the retail price fixed by such company, shall Bazar Commercial Area Bazar, Commercial Area
collect at the time of sale of such goods to such distributor or other persons at the of Dhaka, and Panchlaish of Dhaka, and Panchlaish
rate of five per cent (5%) of the difference between the sale price to the distributor or R/A, Khulshi R/A, Agrabad R/A, Khulshi R/A, Agrabad
other persons and the retail price fixed by such company. and Nasirabad Area of and Nasirabad Area of
Chittagong; Chittagong;
16. Changes of rate of Withholding Tax at source
Sl. Sections Heads of Rates of withholding Rates of withholding (iv) Tk. 5,000 per sq (iv) Tk. 6,000 per sq
No & Rules Withholding tax (AY: 2013-2014) (AY: 2012-2013) meter building used for meter building used for
commercial purpose for commercial purpose for
1 52B Collection of tax 10% of the value of the 6% of the value of the the areas mentioned in
the areas mentioned
from cigarette banderols. banderols. (iii).
in (iii).
manufacturers
at the time of
selling banderols
Continued Continued
Sl. Sections Heads of Rates of withholding Rates of withholding 19. Reference to High Court Division [section # 160]
No & Rules Withholding tax (AY: 2013-2014) (AY: 2012-2013) For consideration of High Court Division, tax rate has been decreased from 25% to 15% where
(V)Tk. 600 per square (V)Tk. 800 per square tax demand does not exceed Tk. 1 million and the rate from 50% to 25% where tax demand
meter for residential meter for residential exceeds Tk. 1 million on the difference between the tax determined by taxes appellate tribunal
building or apartment is building or apartment is and tax payable under section 74.
situated in areas other situated in areas other
20. Amendment in Sixth Schedule, Part-A
than areas mentioned than areas mentioned
in (i) & (ii) above and Tk. above and Tk. 2,000 per Amendments are as follows:
1,600 per sq meter for sq meter for commercial
commercial building for building for the areas Paragraph 11 A: Income from dividend amounting to Tk. 10,000 previously it was Tk. 5,000.
the areas mentioned in mentioned in (i) & (iii)
Paragraph 35: Any income from the export of handicrafts for the period from 01 July
(i) & (iii) above. above.
2011 to 30 June 2015, previously it was 2013.
3 Sec-52, Supply of goods In case of oil supplied In case of oil supplied by
rule-16 and execution by oil marketing oil marketing companies: Paragraph 39: Income derived from any small and medium enterprise (SME) engaged
of contracts, companies: If payment If payment exceeds 2 in production of any goods and having an annual turnover of not more than Tk. 30 Lac,
sub-contracts & exceeds 2 lac-0.60%. lac-0.75%. previously it was Tk. 24 Lac.
local LC
Paragraph 42: Any income from poultry farming for the period from 01 July 2011 to 30
June 2015, previously it was 2013.
17. Return of income-in simplified return form [Section# 75 (2) (di)]
21. Extension of time to avail reduced tax rate for certain industrial companies
An individual, not being a shareholder director of a company, having income from salary or
income not exceeding Tk. 3 Lac from business or profession may opt not to submit particulars Sl. Particulars AY: 2013-2014 AY: 2012-2013
of life style statement or IT 10BB.
1 Income from production of jute industries Till 30 June 2015 Till 30 June
18. Power of giving order for not removing property [section # 116 A] tax @ 15%. [As per SRO No.206 AIN/AIT/2013, 2013
In the course of performing functions under the Ordinance, the Director General, Central dated 01 July 2013]
Intelligence Cell or the Commissioner has definite information in his hands that any person 2 Income from production of Textile and Yarn Till 30 June 2015 Till 30 June
has concealed the particulars of income or investment, he may, by order in writing- require any manufacturing related companies regis- 2013
person who is in immediate possession or control of any money, bullion, jewellery, financial tered under the Company Act 1994 @ 15%.
instrument, financial asset, valuable article or any other property not to remove, part with, [As per SRO No. 207 AIN/AIT/2013, dated 01
or otherwise deal with it without obtaining previous permission of the concerned authority July 2013]
passing such order:
3 Export oriented handicrafts an amount Till 30 June 2015 Till 30 June
Every such order shall cease to have effect after the expiry of a period of one year equal to 50% of the income is tax exempted. 2013
from the date of the order made. 4 Income derived from fisheries, production of 3% till 30 June 5% till 30
seeds, marketing of locally produced seeds, 2015 June 2013
The income tax authority may extend such period or periods with the approval of the
cattle farming, dairy farming, horticulture,
Board. Provided that the total period of extension shall in no case exceed one year.
frog farming, mushroom farming, floricul-
In computing the period if any, for which the order has been stayed by any Court, ture and sericulture. [As per SRO No.208 AIN/
shall be excluded. AIT/2013, dated 01 July 2013]
Continued
22. Tax exempted income as per different SROs Rate of
Initial capital Investment Applicability
Any income of Federation of Chamber of Commerce and Industries approved by tax (Taka)
Ministry of Commerce (except income from Bank interest, profit of organization and If the initial capital investment 3,000/- For assessee of any area.
income from Business) as per SRO No. 210 AIN/AIT/2013, dated 01 July, 2013. It will be up to Taka 8 lac
effective from Assessment Year 2014-2015. If the initial capital investment 5,000/- For assessee of any area.
Private power generation companies (except coal based power generation companies) up to Taka 10 lac
will get tax exemption for 15 years if its commercial production starts within 31 If the initial capital investment 10,000/- For assessee of any area.
December 2014. [SRO No. 211/AIN/IT/2013, dated 01 July 2013]. up to Taka 15 lac
Private power generation companies (except coal based power generation companies) (b) Where an assessee carrying on profession as a Lawyer or Doctor-
which will start commercial production from 01 January 2015 will enjoy tax exemption
facility if it starts commercial production on or after 01 January 2015 as per following Rate of
Length of profession Applicable area
Schedule: [SRO No. 212/AIN/IT/2013, dated 01 July 2013]: tax (Taka)
Upto 3 Years 1,000/- For the assessee not located under any
Period of Exemption Rate of Exemption city corporation or any paurashava of
For the first five years (1st, 2nd,3rd, 4th & 5th year) 100% of income district Head quarters.
For the next three years (6th, 7th, & 8th year) 50% of income Upto 4 Years 2,000/- For the assessee located at paurashava
For the last two years (9th and 10th year) 25% of income in district headquarters and other area
excluding city corporation.
23. Amendment of Alternative Dispute Resolution (ADR) [SRO NO. 68-AIN/IT/2011, dated 05
Upto 5 Years 3,000/- For assessee of any area.
March 2012 & SRO No. 205-AIN/IT/2012, dated 01 July 2013]
Upto 10 Years 5,000/- For assessee of any area.
In the case of a dispute pending before Appellate Tribunal, Assessee has to file application
to the Register/Deputy Register/Assistant Register of the concerned Tribunal Bench. 25. Amendment of Tax-payers Identification Number [Rule-64B]
After getting permission from High Court Division or Appeal Division of the Supreme Court Every person shall, for the purpose of obtaining Tax-payers Identification Number (TIN)
,the assessee has to file an application to the Second Secretary (Taxes Legal) of NBR. referred to in section 184B of the Ordinance, submit an application-
24. Procedure for spot assessment [Rule-38B (2)] Electronically through the website hosted by the Board for this purpose by following
the procedure mentioned in the website. (web address: www.incometax.gov.bd)
(a) Where an assessee carrying on business-
Manually in the form prescribed below to the Deputy Commissioner of Taxes with
Rate of whom his Jurisdiction lies to any other authority or agency as may be authorized by
Initial capital Investment Applicability
tax (Taka) the Board in this respect.
If the initial capital investment 1,000/- For the assessee not located under All income taxpayers will have to get new TINs by December 31 next through e-TIN
up to Taka 6 lac any city corporation or any paura- registration. The existing TIN will be invalid from 01 January 2014.
shava of district Head quarters.
If the initial capital investment 2,000/- For the assessee located at
up to Taka 7 lac paurashava in district headquar-
ters and other area excluding city
corporation.
Continued
VAT Tax Incentives
26. Summary of VAT Changes in FY: 2012-2013
Enhancement of Annual Turnover amount for turnover tax: Turnover tax @ 3% if

annual turnover of taxable goods or services is less than Taka 8,000,000 (Previous
Taka 7,000,000)
Condition for tax rebate: 80% rebate will be allowed on Telephone, Tele printer, Fax,
Internet, Freight Forwarders, C&F agent, WASA, Audit & Accounting Firm, Procurement
Provider, Security Service, Legal Consultant, Transport Contractor, Banking Service.
[earlier it was 60%]
Withholding VAT:
Areas of withholding VAT extended by the following:

IT enabled service 4.5%
Other Miscellaneous Services 15%
Sponsorship Services 7.5%
Meditation Services 7.5%
Package Value Added Tax for small businessmen-[SRO No.173-AIN/2013/677-Mushak,
dated 06 June, 2013]
Minimum value added tax shall be payable by small businessmen and shop owner who
got registration voluntarily as per following table:
Sl Annual Maximum Minimum pay-

Applicable Area VAT Rate
No. Value Addition (Taka) able VAT (Taka)
1 Dhaka & Chittagong 80,000/- 15% 12,000/-
City Corporations
2 Other City 60,000/- 15% 9,000/-
Corporations
3 Paurashava 40,000/- 15% 6,000/-
of District
headquarters
4 Other areas 20,000/- 15% 3,000/-
Declaration of Taxable Goods by NBR--[SRO No.176-AIN/2013/680-Mushak, dated 06

June, 2013]
Activity Code Activity Name
CO 17.28 Sweet & Sweet related goods
CO 38.30 Furniture

Tax Incentives Tax Incentives
1. Tax incentives for Expatriate
Salaries and allowances of expatriate personnel, employed in a foreign aided project established
under an agreement between the Bangladesh Government and foreign Government, are tax
exempted subject to respective agreement. SRO # 227-L/82 dated 20 June 1982.
2. Tax Incentives on Jute Industry, RMG & Textile Industry
Income tax rate for Jute Goods [SRO # 206-Ain/Income Tax/2013, dated 01 July 2013]: Any
industry manufactures or produces jute goods shall have to pay tax @ 15% and this incentive
will be applicable upto 30 June 2015.
Reduced rate of tax @ 10% of companies engaged in ready-made garments industries on

export sale and this incentive will be applicable upto 30 June 2014. [SRO # 265-Ain/Income
Tax/2010 later modified by SRO No. 217-AIN/IT/2012, dated 27 June 2012]
Reduced rate of tax @ 15% of companies engaged in textile industries from 01.07.2008 to
30.06.2015 [SRO # 207- Ain/Income Tax/2013, dated 01 July 2013]
3. Tax Incentives on Fisheries, Poultry, Dairy Farming etc.
Any income from fisheries, poultry, production of pelleted poultry feed, production seeds,
marketing of locally produced seeds, cattle farming, dairy farming, horticulture, frog farming,
mushroom farming, floriculture, sericulture etc. irrespective of individual or company
assessee shall have to pay tax @ 3% (earlier which was tax exempted through para # 34 of
sixth schedule). Ref. Income tax rate for fisheries, poultry, dairy farming etc. [SRO # 208-Ain/
Income Tax/2013, dated 01 July 2013].
4. Tax Incentives on Real Estate and Land development Industry
According to Section 38, Sixth Schedule, Part A
Any income derived from any building situated in any area of Bangladesh, not less than
five storied having at least ten flats, constructed at any time between the first day of July,
2009 and the thirtieth day of June, 2014 (both days inclusive), for ten years from the date of
completion of construction of the building, except the buildings situated in any areas of City
Corporation, Cantonment Board, Tongi Upazila, Narayanganj Paurashava, Gazipur Paurashava
and any Paurashava under Dhaka district.
5. Tax Incentives on Information & Technological Industry
According to serial number 33, Sixth Schedule, Part A
Any income derived from the business of software development and Information Technology
Enabled Services (ITES) for the period from the first day of July, 2008 to the thirtieth day of
June, 2015:

Tax Incentives Tax Incentives
Provided that the person shall file income tax return in accordance with the provisions of a. Company and Firm assessee: all companies [u/s-2(20)] and partnership firms [u/s-
section 75(2)(c) of the Ordinance. 2(32)] shall pay tax @ 10% on income for transfer of stocks and shares public limited
companies listed with stock exchange. This clause is only applicable for all listed
Explanation: Information Technology Enabled Services (ITES) means- Digital Content companies and firms including banks and insurance entity. The tax shall be paid as
Development and Management, Animation (both 2D and 3D), Geographic Information Services advance & besides this all other income will be taxed as prescribed manner and it will
(GIS), IT Support and Software Maintenance Services, Web Site Services, Medical Transcription, be effective for any transfer of shares from 01 July 2010.
Business Process Outsourcing, Data entry, Data Processing, Call Centre, Graphics Design, Search
Engine Optimization, Web Listing, E-commerce and Online Shopping, Document conversion, b. Sponsored shareholder assessee: any transfer of shares and stocks of bank, financial
imaging and archiving. institution, merchant bank, insurance, leasing company, portfolio Management
Company, stock dealer or stock broker company by individual sponsored shareholders
6. Tax Incentives on investment in Stock Exchange or directors, the assessee has to pay tax @ 5%. On the other hand company assessee
Income tax will be imposed on capital gain arising from the transfer of capital assets being has to pay tax @ 10%. The payment of tax will be treated as advance tax and it will be
stocks and shares of public limited companies listed with stock exchange in Bangladesh and effective for any transfer of shares from 01 July 2010.
bonus shares of the company but income from transfer of government securities is exempted c. More than 10% securities owned assessee: other than sponsored shareholders or
[section: 32(7)] directors, if any person owned more than 10% securities of listed companies i.e. bank,
nvestment in shares in the Stock Exchanges [SRO # 237-Ain/Income Tax/2011, dated 06 July 2011] financial institution, merchant bank, insurance, leasing company, portfolio management
company, stock dealer or stock broker company has to pay tax @ 5% on income from
No explanation regarding sources of income will be searched by the tax authority if investment transfer of those securities. This will be applicable if any assessee holds more than 10%
of un-taxed income is made on primary or secondary shares of any company listed with stock securities of listed companies any time within the income year. The tax shall be paid as
exchanges in Bangladesh and paid income tax @ 10% on invested amount subject to fulfilling advance and it will be effective for any transfer of shares from 01 July 2010.
following conditions:
Assessee has to pay Advance Income Tax as per prescribed manner, if any income and/or gain
Person (individual, firm, private limited company etc.) other than public limited company can from transfer of stocks and shares of a company listed with stock exchange [section: 64(2)]
take this opportunities;
Here securities means all stocks, shares, mutual fund unit, bond, debenture & other of listed
Investment must be made within 01 July 2011 to 30 June 2012 and declaration of such companies and transacted in stock exchange but not government securities. Capital gain on
investment in prescribed form must be submitted to Deputy Commissioner of Taxes (DCT) transfer of listed shares by all individual assessee will be tax exempted.
within 15 July 2012 or any time when investment will be made;
Collection of tax from transfer of securities or mutual fund unit by sponsored shareholders of
Copy of pay order for tax @ 10% on invested amount, portfolio statement and Beneficiary a company etc.
Owners (BO) account ledger should be submitted along with declaration form;
The Securities and Exchange Commission (SEC) or Stock Exchange (SE), as the case may be, at
Invested amount should not be withdrawn from capital market before 30 June 2013 and if the the time of transfer or declaration of transfer or according consent to transfer of securities
amount or any part of amount is withdrawn, the amount withdrawn shall be treated as income or mutual fund unit of a sponsored shareholder or director or placement holder of a company
from other source. But whole invested amount may be mobilized with purchasing and selling or sponsor or placement holder of a mutual fund listed with a stock exchange shall collect tax
of listed company shares and any gain from transactions is allowed for withdrawal; @ 5% on the difference between transfer value and cost of acquisition of securities or mutual
fund units.
Any tax concealment is noticed to tax authority within 30 June 2011 and then action taken as
per section # 93, no such benefit will be availed by the assessee; Here transfer includes transfer under a gift, bequest, will or an irrevocable trust and transfer
value means closing price prevailing on the day of consent accorded by SEC or SE or when last
Investment shall be shown with assets and liabilities in income tax return and no investment traded as the case may be.
allowance shall be exercised.
As per SRO # 269-Ain/Income Tax/2010, dated 01 July 2010, assessee has to pay tax on the
income of transfer of stocks and shares as per following schemes:

Tax Incentives Income Tax
7. Tax Incentive on money borrowed from abroad
SRO # 417-L/76 dated 29 November 1976
Under certain conditions, tax is fully exempted on the Interest on money borrowed from
abroad by:
Government
Statutory bodies
Industrial undertakings
8. Incentive for investment in residential building and apartment. [Sec: 19BBBBB]
No question as to the source of any sum invested by any person in the residential building or
apartment, if such person pays tax @ 10% on sum invested before the relevant assessment
year.

1. Definitions
a. Assessee [Section: 2(7)]: Assessee means a person by whom any tax or other sum of
money is payable under Income Tax Ordinance 1984.
b. Person [Section: 2(46)]: Person includes an individual, a firm, an association of
persons, a Hindu undivided family, a local authority, a company and every other
artificial juridical person.
c. Income [Section: 2(34)]: Income means any sum of income or gain from whatsoever
source derived, or accruing or arising or received or deemed to be accrue or arise or
to be received under any provision of IT Ordinance 1984.
d. Tax [Section: 2(62)]: Tax means the income tax payable under the Income Tax Ordinance
1984 and include any additional tax, excess profit tax, penalty, interest, fee or other
charge leviable or payable under the IT Ordinance 1984.
e. Income Year [Section: 2(35)]: Income Year means the financial year immediately
preceding the assessment year or when accounts are closed on a date within the
financial year, the twelve months ending on the date on which accounts are closed.
f. Assessment Year [Section: 2(9)]: Assessment Year means the period of twelve months
beginning from first day of July of every year. This is the immediate following financial
year of Income Year. Examples of Accounting Year, Income Year and Assessment year:
Accounting Period/Year Income Year Assessment Year

1 Accounting Year: July 2012 to June 2013 2012-13 2013-14
2 Accounting Year: January 2012 to 2012-13 2013-14
December 2012
3 Accounting Year: April 2011 to March 2012 2011-12 2012-13
4 Accounting Year: October 2011 to 2012-13 2013-14
September 2012
5 Accounting Year: August 2011 to July 2012 2012-13 2013-14
g. Annual Value [Section: 2(3)]: Annual value means the sum arising from letting out any
property and related furniture, fixture and fittings or any sum received as Annual Rent,
whichever is higher.
h. Basis of Residence [Section: 2(55)]:
i. Individual: An individual will be Resident: - if he/she stays in Bangladesh for a

period of or for the periods all together at least 182 days or more in the income
year or - if he/she stays in Bangladesh for a period of or for the periods all
together at least 90 days or more in the income year and 365 days or more
during the immediate four preceding years of income year.

ii. Company: The company will be resident if the management of its affairs is Income tax shall be deducted and collected at source and paid accordingly. Non-resident not
situated wholly in Bangladesh in the income year. being a company, capital gain and winnings shall be taxed as per second Schedule of this
Ordinance.
iii. Hindu Undivided Family, Firm, Other Association of Persons: They will be
resident if its control and management of affairs is situated wholly or partly in 3. Charge of Surcharge [Section 16A]
Bangladesh in the income year.
Surcharge on income shall be charged for any assessment year at any rate or rates as the case
i. Non-resident [Section: 2(42)]: Non-resident means a person who is not a resident. may be. Again, if any individual assessee whose total net worth more than Tk. 2 crore to 10
crore as per statement of assets, liabilities and expenses, shall have to pay tax @ 10% on tax
j. Salary [2(58) and 18] and Perquisites [2(45) and 30(e)]: Salary includes the following:
payable, whereas the rate of surcharge is 15% for assets more than value of Taka 10 crore.
yy Basic Salary yy Contribution to PF
4. Charge of Additional Tax [Section 16B]
yy Festival Bonus yy Pension Fund
If a publicly traded company (other than banking or insurance company) does not issue,
yy Incentive Bonus, allowable upto 10% of dis- Gratuity Fund
declare or distribute dividend or bonus share equivalent to at least 15% of its paid up capital
closed net profit [Section # 30(j)]
within 6 months immediately following its income year, it will be charged 5% additional tax
yy Arrear Salary yy Superannuation Fund on undistributed profit in addition to tax payable under IT Ordinance 1984. Here undistributed
yy Advance Salary yy Project pay profit means accumulated profit including free reserve.
yy Leave Encashment yy Compensation pay 5. Charge of Excess Profit Tax [Section 16C]
yy Leave Fare Assistance yy Wages or any other payment
If a banking company operating under Bank Company Act 1991 shows profit exceeding 50% of
yy Overtime the aggregate sum of capital and reserve, the bank shall pay @ 15% tax of such excess amount.

Such tax is payable in addition to tax payable under IT Ordinance 1984.
Perquisites include the following:
6. Charge of Minimum Tax [Section 16CCC]
Any benefits other than the items included under salary shall be considered as
perquisites - Examples of perquisites are: Minimum tax for every firm shall, subject to having more than gross receipts of Taka 50 Lacs
and every company irrespective of its profits or loss liable to pay minimum tax @ 0.50% on
Dearness Allowance total receipt from business in the income year. Total receipt from business for minimum tax
purpose will be calculated as follows:
House Rent allowed up to BDT 2,40,000
Conveyance allowed up to BDT 30,000 Sum of received or receivable from sale of products;
Medical allowed up to actual expenditure Sum of received or receivable from rendering of services;
Maximum perquisites allowed BDT 250,000 Interests, Commissions, Discounts, Fees or Charges; and
Excess of perquisites (over Tk. 250,000) will be taxed as per Organizations Income received or receivable from any other sources.
tax rate.
Minimum tax of the company assessee will be determined on total received or receivable from
Any other allowance all sources of income. Minimum tax will not be applicable, if any company has no received
or receivable from sales or any other sources and if companys income already taxed under
2. Charge of Income Tax [Section 16] section # 82C. But minimum tax will be applicable irrespective of net loss or adjustable
accumulated loss from previous years. This minimum tax has to be paid by the company at the
Income tax shall be charged for any assessment year at any rate or rates in accordance with
time of filling income tax return and in accordance with section # 74.
the provisions of this Ordinance in respect of the total income of the income year or years.

7. Income Exemption Limit 9. Minimum Tax (Individual)
Tax exempted minimum income limit of individual assessee has been enhanced from Taka Minimum tax for individual assessee has been changed on the basis of location. Whose taxable
200,000 to Taka 220,000 for male, while this limit for female, persons aged 65 years & income exceeding exemption limit of Taka 220,000 or Taka 250,000 or Taka 300,000 (as the
above has been enhanced from Taka 225,000 to Taka 250,000 and for disabled assessee this case may be) has to pay tax on the basis of following location:
limit enhanced from Taka 275,000 to Taka 300,000 with effect from Income Year 2012-2013
(Assessment Year 2013-2014). Minimum tax is Taka 3,000 for resident of City Corporations.
8. Personal Tax Rate Structure Minimum tax is Taka 2,000 for resident of District Head Quarters and Paurashavas
The person defined under section 2(46) of Income Tax Ordinance (ITO) 1984, every individual Minimum tax is Taka 1,000 for resident of Upazillas and others
assessee (including Non-resident Bangladeshi), firm (partnership or single), association of If minimum tax becomes less than Taka 3,000 or Taka 2,000 or Taka 1,000 (as the case may be)
persons, Hindu undivided family, artificial juridical person and Non-Government Organization or negative after adjusting Investment Tax Credit, individual assessee has to pay Taka 3,000 or
(NGO) shall have to pay income tax on their total income according to 5 tier income slabs and Taka 2,000 or Taka 1,000 respectively as minimum tax.
tax rates for the Financial Year 2012-2013 and Assessment Year 2013-2014.
Minimum tax exempted income for female, persons aged 65 years & more and disabled
The following table entails comparable scenario of 5 tier income slabs and tax rates for the two assessee having only agricultural income is Taka 300,000 and 350,000 respectively while for
consecutive financial years: other assessee, this limit is Taka 270,000.
Financial Year 2012-2013 Financial Year 2011-2012 10. Incidence of Tax on Non-Resident
(Assessment Year 2013-2014) (Assessment Year 2012-2013)
A person who is a non-resident is liable to pay tax on the incomes, profits and gains which
Income Slabs Tax Income Slabs Tax are received or deemed to have been received or are deemed to accrue or arise to him in
Rates Rates Bangladesh.
i. On the first Taka 220,000 of Nil i. On the first Taka 200,000 Nil
total income of assesses of total income of assessee A non-resident assessee is not entitled to any sort of allowance and relief as are admissible
to a resident assessee for the purpose of tax rebate;
On the first Taka 250,000 Nil On the first Taka 225,000 Nil
of total income for Female, of total income for Female, A non-resident assessee (other than Bangladeshi non-resident) is liable to pay tax on his total
persons aged 65 years & above persons aged 65 years & income @ 25% [Second Schedule]
assessee above assessee
On the first Taka 300,000 of Nil On the first Taka 275,000 of Nil
A Non-resident Bangladeshi (NRB) is subject to pay tax at normal rate, as applicable for a
resident assessee.
total income of physically total income of physically
challanged assessee challanged assessee 11. Scope of Total Income [Section 17]
ii. On the next Taka 300,000 of 10% ii. On the next Taka 300,000 10%
total income of total income The total income of any income year of any person includes:
iii. On the next Taka 400,000 of 15% iii. On the next Taka 400,000 15%
total income of total income Resident Non-Resident
iv. On the next Taka 300,000 of 20% iv. On the next Taka 300,000 20% All income from whatever sources including All income from whatever sources including
total income of total income received or deemed to be received in received or deemed to be received in
v. On the balance of total income 25% v. On the balance of total 25% Bangladesh; accrue or arises or deemed to Bangladesh; accrue or arises or deemed to
income accrue or arises in Bangladesh; or accrue or accrue or arises in Bangladesh.
Non-resident (Foreign) 25% Non-resident (Foreign) 25% arises outside Bangladesh.
assessee assessee

12. Income Deemed to Accrue or Arise in Bangladesh [Section 18]:
VIII Difference between the purchase price and fair market value - Income from Other
The following income shall be deemed to accrue or arise in Bangladesh, namely: Sources [Section 19(8)]
IX Salami or Premium - Income from Other Sources [Section 19(9)]
a. Any income which falls under the head Salaries, wherever paid, if [Section 18(1)]: X Goodwill, compensation or damages, etc. - Income from Other Sources [Section 19(10)]
it is earned in Bangladesh; or
it is paid by Bangladesh Government or local authority in the service of such XI Cancellation of indebtedness - Income from Other Sources [Section 19(11)]
government or authority; XII Managing Agency Commission - Income from Other Sources [Section 19(12)]
b. Any income accruing or arising, whether directly or indirectly, through or from XIII Lotteries, crossword puzzles etc. - Income from Other Sources [Section 19(13)]
[Section 18(2)]: XIV Income from Insurance Business - Income from Business or Profession [Section
any business connection in Bangladesh; 19(14)]
any property, asset, right, other source of income in Bangladesh;
transfer of capital assets in Bangladesh; XV Receipt back of loss, bad debt or expenditure and unpaid trading liability etc.
-Income from Business or Profession [Section 19(15)]
c. Any dividend paid outside Bangladesh by a Bangladeshi company [Section 18(3)]
XVI Income from sale of depreciated assets having been used for the purpose of any
d. Any income by way of interest payable [Section 18(4)]: business or profession - Income from Business or Profession [Section 19(16)]
by the government; or
XVII Income from sale of depreciated assets having been used for agricultural purpose
by a person who is resident / non-resident in Bangladesh;
- Income from Agriculture [Section 19(17)]
e. Any income by way of fees for technical services payable [Section 18(5)]:
XVIII Income from receipt of insurance, salvage or compensation moneys in respect of
assets having been used for the purpose of any business or profession - Income
from Business or Profession [Section 19(18)]
f. Any income by way of royalty payable [Section 18(6)]:
XIX Income from receipt of insurance, salvage or compensation moneys in respect of
assets having been used in agriculture - Income from Agriculture [Section 19(19)]
XX Income from sale of assets of capital nature - Income from Business or Profession
13. Deemed Income [Section 19] [Section 19(20)]
Unexplained cash credits, investments, possession of bullion, unpaid trading liabilities/ loan XXI Unpaid loan Taka 500,000 is to be recognized as income immediately after expiry
etc. will be treated as deemed income, which are mentioned below in brief with relevant heads of 3 years of loan taken. Income from Other Source [Section 19(21)]
of income and respective sub-section: XXII Loan or gift received by the assessee shall be deemed to be his income of the year
in which the same is received- Income from Other Source [Section 19(21A)]
I Unexplained Cash credit - Income from Other Source [Section 19(1)] XXIII Initial Capital of Business or Profession is shown in return of income under section
II Unrecorded investment or possession of bullion, jewellery etc. - Income from # 82BB transferred fully or partly shall be deemed income of the year in which
Other Source [Section 19(2)] transferred being made- Income from Other Source [Section 19(21B)]
III Unexplained expenditure - Income from Other Sources [Section 19(3)] XXIV Un-adjustable security money taken from tenant - Income from House Property
IV Unrecorded investment - Income from Other Sources [Section 19(4)] [Section 19(22)]
V Ownership of any money, bullion etc. - Income from Other Sources [Section 19(5)] XXV Income from transfer of export quota by Garments Industry - Income from
Business or Profession [Section 19(23)]v
VI Income received from discontinued business - Income from Business or Profession
[Section 19(6)] XXVI Investment by a company, not listed with any stock exchange, received paid up
capital from any share holder not being received by cross cheque or bank transfer
VII Receipt of Dividend - Income from Other Sources [Section 19(7)]
- Income from Other Source [Section 19(24)]

XXVII Company assessee receives loan from any other person other than crossed Plinth area up Plinth area more
cheque or bank transfer shall be deemed income for that year of loan received- to 200 square than 200 square
SL. Areas of residential building or
Income from Other Source [Section 19(26)] meters, Tax meters, Tax amount
# apartment
XXVIII Company assessee purchases directly or on hire motor car or jeep and value of amount per square per square meter
any motor car or jeep exceeds 10% of its paid up capital, then 50% of that exceeds meter (Taka) (Taka)
amount shall be deemed to be income of the year- Income from Other Source 4 Areas of Paurasabhas of any 1,000/- 1,500/-
[Section 19(27)] district headquarters
XXIX Individual assessee receives any sum exceeding Taka 500,000 as loan or gift 5 Upazilla and Others 700/- 1,000/-
otherwise than by a crossed cheque or bank transfer-Income from Other source
6 It already owned a building or As per above tax As per above tax
[Section 19(28)]
apartment in any City Corporation Plus extra 20% of Plus extra 20% of
14. Special tax treatment in respect of investment in residential building and apartment before such investment is completed above calculated above calculated tax
[Section: 19BBBBB] or the assessee invests in two or tax
Source of any sum invested by any person in the construction or purchase of any residential more Buildings or Apartments
building or apartment for residential purpose and pays tax on the basis of measurement 15. Special tax treatment in respect of investment in the purchase of bond under Bangladesh
before the assessment for the relevant assessment year in which the investment is completed, Infrastructure Finance Fund (BIFF) [Section: 19C]
then tax authority will not raise question on the source of investment.
No question shall be raised as to the source of any investment by any person in the purchase
Area, measurement and tax rates of such residential building or apartment are as follows: of bond issued under Bangladesh Infrastructure Finance Fund (BIFF) during the period
between 01 July 2010 and 30 June 2012 (both days inclusive), if assessee pays tax @ 10% on
Plinth area up Plinth area more such investment before filling return of income for the relevant income year. Any person may
to 200 square than 200 square invest under this scheme.
SL. Areas of residential building or
meters, Tax meters, Tax amount
# apartment 16. Special tax treatment in respect of investment in the purchase of Bangladesh Government
amount per square per square meter
meter (Taka) (Taka) Treasury Bond [section # 19D]
1 Gulshan Model Town, Banani, 5,000/- 7,000/- Notwithstanding anything contained in any other provision of the Ordinance, no question as
Baridhara, Motijheel Commercial to the source of any sum invested by any person, being an individual, in the purchase of
Area and Dilkusha Commercial Area Bangladesh Government Treasury Bond shall be raised if such person pays, before the filling
of Dhaka of return of income for that income year as per provisions laid down in section # 75(2), tax @
10% on sum invested.
2 Dhanmandi Residential Area, 4,000/- 5,000/-
Defence Officers Housing Society 17. Voluntary disclosure of income [section # 19E]
(DOHS), Mahakhali, Lalmatia Hous-
ing Society, Uttara Model Town, Any person, who has not been assessed tax for previous assessment year or years or who has
Bashundhara Residential Area, been assessed for tax lower than actual tax those year or years may disclose such income in
Dhaka Cantonment, Kawran Bazar, the respective heads of income in the return of income along with the income for the current
Bijaynagar, Segunbagicha, Nikunja assessment year.
of Dhaka, and Panchlaish, Khulshi, Return of income under this provision shall be treated as valid, if:
Agrabad and Nasirabad Area of
Chittagong The return of income is submitted within the time as specified u/s 75 (2)
3 Other areas of City Corporations 2,000/- 3,000/- Tax payable at applicable rate on total income inculding such income and penalty
except serial nos. 1 & 2 above @310% proportionate to such income are paid before submission of Return
Continued
A declaration is enclosed with the return of income including any salary paid or allowed to him in the income year by or on behalf of an
employer, though not due or before it became due to him;
Name of the person declaring
any arrears of salary paid or allowed to him in the income year by or on behalf
Head of the declared income and amount thereof; and
of an employer, if not charged to income tax for any earlier income year;
Amount of tax and penalty paid thereof.
ii. House rent allowance receivable in cash [Rule # 33A]: House rent allowance in Taka
The provision of this section shall not apply, where - 20,000 per month or 50% of basic salary or, whichever is less, shall be included in
income.
A notice under clause (b) of sub-section (3) of section 93 has been issued before
submission of such return of income iii. Rent free accommodation [Rule # 33B]: The rental value of the accommodation or 25%
of basic salary, whichever is less, shall be included in income.
A notice on a banking company under clause (f) of section 113 has been issued before
submission of such return of income; iv. Conveyance allowance receivable in cash with no conveyance facility [Rule # 33C]:
Allowable amount is Taka 30,000 per annum. The allowance so receivable in excess of
Any proceeding under section 164,165,166 has been initiated before submission of such
Taka 30,000 per annum shall be included in income.
return of income ;or
v. Conveyance provided partly or exclusively for personal or private use [Rule # 33D]: An
Any income declared under this section is
amount equal to 7.5% of basic salary shall be included in income.
Not derived from any legitimate source of income or
vi. Additional conveyance allowance [Rule # 33E]: The whole amount shall be included in
Derived from any criminal activities under any other law for the time being in force. income.
The income shown under this section may be invested in income generating activities or any vii. Free or concessional passage for travel abroad or within Bangladesh [Rule # 33G]:
section including the following:
Where free or concessional passage for travel abroad or within Bangladesh
Industrial undertaking including its expansion; is provided by the employer to an employee (including the members of his
household and dependents) shall be included in the income of the employee:
Balancing ,moderating, renovation and extension of an existing industry;
Building or apartment or land; Where the passage is provided in accordance with the terms of employment:
Securities listed with a stock exchange in Bangladesh; or An amount equal to the sum by which the cash payments, if any, made by
employer exceeds the actual expenditure incurred by the employee;
Any trade, commercial, or industrial venture engaged in production of goods or services.
Where the passage is not in accordance with the terms of employment:
18. Income from Salary [Section 21]
The whole of the amount paid in cash and if not paid in cash, the amount which
Any income classifiable as salaries irrespective of its place of payment shall be deemed to be would have been expended by the employee if not provided by the employer;
income accruing or arising income in Bangladesh if it is earned in Bangladesh or it is paid by
the government or local authority in Bangladesh to a citizen in Bangladesh. Where free concessional passage for travel abroad is availed more than once
in two years:
Salary once included in any year on due basis or advance payment basis is not includible in the
income of any other year. The whole of the amount paid in cash, if any, for such additional passage or if
no cash payment is made, the amount which would have been expended for
i. Income classified under the head Salaries: Salaries include the following- this passage if not provided by the employer shall be included in his income.
any salary due from an employer to the assessee in the income year whether
Where the transport is provided free of cost or at a concessional rate:
paid or not;
By an undertaking engaged in the transport of passengers or the carriage

of goods of an employee of the undertaking in any conveyance owned or i. Maintenance allowances: (25% of annual value in case it is used for residential
charted by the undertaking for the purpose of the transport of passengers, purposes, and 30% of annual value in case it is used for commercial purpose)
nothing shall be added in his income;
ii. Insurance premium
viii. Entertainment allowance [Rule # 33H]: The whole amount shall be included in income iii. Interest on mortgage or other capital charges
except for free tea, coffee, beverages or the like thereof provided at the office premises iv. Any tax not being a charge leviable on annual basis
during the course of work.
v. Ground rent
ix. Medical expenses [Rule # 33I]: Receipts / receivable from employer in excess of actual vi. Land development tax
expenditure shall be included in the income of the assessee. vii. Interest payable on capital borrowed for the purpose of acquisition, construction,
reconstruction, repair or renovation of the house property; subject to owners
x. Other benefits [Rule # 33J]: Equivalent amount shall be included in income.
self occupied portion for which interest on borrowed capital not exceeding Taka
xi. Allowable exemptions on the income of Sponsor / Shareholder Directors [Rule # 33(2)(b)]: 2,000,000.
As per SRO 207-Ain/2005 dated 06.07.2005, a shareholder, being director of more than one viii Proportionate vacancy allowances
company, shall be entitled to the benefits under rule # 33 from one company only. ix. Interest payable during construction period to be allowed in 3 subsequent equal
installments.
19. Income from Interest on Securities [Section 22 & 23]
Interest or annual charge payable outside Bangladesh shall not be allowed as deduction on
Incomes classifiable under the head Interest on Securities are:
which tax has not been paid or deducted at source.
a. Interest receivable by the assessee on any security of the government or any security
21. Income from Business or Profession [Section 28]
approved by the government;
Income from business or profession includes the following:
b. Interest receivable by him on debenture or other securities of money issued by or on
behalf of a local authority or company;
i. profits and gains of any business or profession;
c. Deductions permissible in the determination of income from interest on securities are: ii. income of trade or professional association derived on account of specific services
performed for its members;
i. Commission or charges deducted from interest by a bank realizing the interest
on behalf of the assessee; iii. value of any benefit or perquisite arising from business or exercise of profession;
iv. receipt back of loss, bad debt or expenditure and unpaid trading liability as referred
ii. Interest payable on money borrowed for the purpose of investment in the
to section 19 (15);
securities;
v. income from sale of asset of depreciated asset as referred to section 19 (16);
Provided that allowance or deduction on account of interest or commission
in respect of or allocable to the tax-free government securities shall not be vi. income from receipt of insurance, salvage or compensation money as referred to
allowed. Deduction will also not be allowed in respect of interest payable section 19 (18);
outside Bangladesh on which tax has not been paid or deducted. vii. income from sale of asset of capital nature as referred to section 19 (20);
20. Income from House Property [Section 24 & 25] viii income from transfer of export quota as referred to section 19 (23).
a. Income from house property whether used for commercial or residential purposes 22. Allowable Deductions on income from Business or Profession [Section 29(1)]
is taxable on the basis of its annual value. The value determined by the tax authority The allowable deductions which have been specifically mentioned are the following:
u/s- 2(3) will be treated as annual value.
b. Deductions allowable in the determination of income from house property: The i. Rent for the business premises [Para # 1(i)]
following deductions are allowable in determining the net income: ii. Repairs to hired business premises [Para # 1(ii)]

iii. Bank interest paid or any profit shared with a bank run on Islamic principles in xvii Provision for bad and doubtful debt and interest thereon made by a commercial
respect of capital borrowed for the purpose of business or profession [Para #1(iii)] bank including the Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and
Karmosangsthan Bank for a sum equal to 1% of the outstanding loan including
iv. Share of profit paid by a bank run on Islamic principles [Para # 1(iv)] interest thereon or the amount of actual provision, whichever is less, subject to
v. An amount not exceeding 5% of the profit transferred to Special Reserve by the specified conditions, allowable during the assessment years 2001-2002,2002-
financial institutions approved by the Government [Para # 1(v)] 2003,2003-2004 and 2004-2005, 2005-06 and 2006-07;
If any amount out of the provision for bad and doubtful debt and interest thereon,
vi Repairs to own buildings, plants, machinery, furniture etc. [Para # 1(vi) which has been allowed, is ultimately recovered, the amount so recovered shall be
deemed to be profit of the year in which it is recovered [Para # 1(xviiiaa)]
vii. Insurance premium for insurance against risk of damage etc. of buildings plant etc.
xviii Any expenditure, not being capital expenditure, laid out or expected on scientific
used in business or profession [Para # 1(vii)]
research related to the business [Para # 1(xix)]
viii Depreciation of building, machinery, plant or furniture being owned by the assessee xix Any expenditure of a capital nature laid out or expended on scientific research
or bridge or road or fly over owned by a physical infrastructure undertaking related to the business subject to the stipulated conditions [Para # 1(xx)]
and used for business or profession; the allowances are admissible under Third
xx Any sum paid to scientific research institute etc. subject to the stipulated
Schedule [Para # 1(viii)]
conditions [Para # 1(xxi)]
In respect of amortization of license fees as admissible under the third schedule
[Para # 1(viiia)] xxi Any sum, not being of capital nature laid out or expended on any educational
institute or hospital established for the benefit of employees subject to the
ix Investment allowance for a passenger vessel or a fishing trawler, which is entitled stipulated condition [Para # 1(xxii)]
to special depreciation at 20% of the original cost subject to stipulated conditions xxii Expenditure (including capital expenditure) incurred on any educational institution
(Third Schedule, Para # 8) [Para # 1(ix)] or hospital established for benefit of employees and their dependents is
deductible provided no charge is made for the services rendered by such hospital
x Obsolescence allowance for building, machinery or plant, which has been
or institution. Expenditure incurred on the construction, maintenance or running
discarded, demolished or destroyed, under the stated circumstances and to the
of any institute for the training of industrial workers will be similarly deductible
prescribed extent (Third Schedule, Para # 10) [Para # 1(xi)]
[Para # 1(xxiii)]
xi Obsolescence allowance and allowance on account of death or useless animals; xxiii Any expenditure laid out or expended on the training of citizens of Bangladesh
[Para # 1(xii)] in connection with a scheme approved by the National Board of Revenue [Para #
1(xxiv)]
xii Land development tax or rent, local rates, etc. [Para # 1(xiii)] xxiv Expenses incurred in connection with visits abroad in a Trade Delegation
sponsored by Government [Para # 1(xxv)]
xiii Bonus paid to employees including festival bonus [Para # 1(xiv)]
xxv. Subscription paid to a registered trade organization or to a recognized professional
xiv The amount of bad debt, which is established to have become irrecoverable, under institution is allowable expenditure for the purpose of computation of income
the stated circumstances [Para # 1(xv)] from business [Para # 1(xxvi)]
xv The amount of bad debt written off as irrecoverable but deduction not allowed on xxvi. Any expenditure, not being in the nature of capital expenditure or personal
the ground that it was not then irrecoverable, the amount which was established expenses of the assessee laid out or expended wholly and exclusively for the
to be irrecoverable [Para # 1(xvi)] purpose of the business or profession of the assessee [Para # 1(xxvii)]
xvi The amount for bad debt having been irrecoverable in an earlier year, is allowable xxvii. Allowance in respect of expenditure on publicity and advertisement [Section 30,
for the earlier year under the stated circumstances and with the consent of the Para # f(iii)]
assessee [Para # 1(xvii)]

xxviii. Any allowance in respect of expenditure on entertainment not in excess of the iii. Payment of interest, salary, commission or remuneration by a firm or an association
amount prescribed in this behalf, Ceiling of admissible expenditure has been of persons to any partner of the firm or any member of the association as the case
prescribed in Rule 65 of Income Tax Rules, 1984 [Section 30, Para # f(i)] may be [Para # 30(b)]
On the first Taka 1,000,000 of income from business or profession : 4% iv. Brokerage or commission paid to a non-resident if tax has not been deducted there
On the balance income : 2% from under section 56 [Para # 30(c)]
xxvix. Foreign travel expenses for holidaying and recreation incurred by business houses v. Payment to a provident or other fund unless effective arrangement has been made
on account of their employees and their dependants not exceeding the amount for deduction of tax at source while making the payments from the fund which are
prescribed in this behalf under Rules 65A of the Income Tax Rules, 1984 [Section taxable under the head Salaries [Para # 30(d)]
30, Para # f(ii)] vi. Amount of perquisites or other benefits paid, as defined under Section 2(45), to any
The amount has been restricted upto 3 months basic salary or three-fourth of employee in excess of Taka 250,000 [Para # 30(e)]
the actual expenditure whichever is less, not oftener than once in every 2 years; Provided that this ceiling shall not be applicable to an employer where perquisites
subject to sum exceeding Taka 10,000 shall not be allowed as deduction unless were paid to an employee in pursuance of any government decision to implement
such payment is made through bank. the recommendation of a Wage Board constituted by the government;
xxx. Allowable expenditure on distribution of Free-Sample {(Rule: 65C), (Section vii. The amount of expenditure in excess of the prescribed rates and as is not, in the
30,Para # f(iv)} case of sales and services liable to excise duty, supported by excise stamp or seal in
In respect of industry other than pharmaceutical industry: respect of the following items [Para # 30(f)]
Turnover upto Taka 5 crore : 1.50% Entertainment (Rule # 65)
Turnover exceeding Taka 5 crore but not exceeding Foreign travels of employees and their dependants for holidaying and recreation
Taka 10 crore : 0.75% (Rule # 65A)
Turnover exceeding Taka 10 crore : 0.375% Distribution of free samples (Rule # 65C)
viii. Any expenditure exceeding 10% of the profit under the head office expenses by a
In respect of pharmaceutical industry: company not incorporated in Bangladesh under Companies Act 1994 [Para # 30(g)]
Turnover upto Taka 5 crore : 2.0% ix. Any payment by way of royalty, technical services fee, technical know how fee or
Turnover exceeding Taka 5 crore but not exceeding technical assistance fee exceeding 8% of the profit [Para # 30(h)]
Taka 10 crore : 1.0% x. Any payment by way of salary or remuneration made otherwise than by crossed
Turnover exceeding Taka 10 crore : 0.50% cheque or bank transfer by a person to any employee having gross monthly salary
xxxi Head Office Expenses for a Company not incorporated in Bangladesh, allowable of Taka 15,000 or more [Para # 30(i)]
upto 10% of the net profitt (Section 30g) xi. Any expenditure by way of incentive bonus exceeding 10% of the disclosed net
xxxii Technical Assistance Fee / Royalty allowable upto 5% of the profit (Section 30h) profit [Para # 30(j)]
xxxiii Incentive Bonus allowable upto 10% of the disclosed net profit (Section 30j) xii. Any expenditure by way of overseas traveling exceeding 1% of the disclosed
turnover [Para # 30(k)]
23. Deductions are not admissible in certain circumstances [Section 30] xiii. Any payment by way of commission paid or discount made to its shareholder
director by a company [Para # 30(l)]
The following expenditures are not admissible deductions in the determination on income
from business or profession: xiv. Any payment by a person exceeding Taka 50,000 or more, otherwise than by
a crossed cheque or bank transfer excluding payment for the purchase of raw
i. Payment of salaries if tax is not deducted at the time of payment and paid thereon materials and payment for government obligation.
in accordance with section 50 [Para # 30(a)]
ii. Any payment made by an assessee to any person if tax thereon has not been 24. Capital Gains [Section 31]
deducted and credited in accordance with Chapter VII and VAT thereon has not been Any gains arising from transfer of a capital asset (both movable and immovable) as defined in
collected or deducted and credited in accordance with VAT Act. 1991 [Para # 30(aa)] Section 2(15) of the Income Tax Ordinance is chargeable to income tax in accordance with the

Second Schedule, Para # 2 of the Income Tax Ordinance, 1984 which prescribes rates of income iv. Transfer of Capital Asset of a firm to a new company: Capital gain arising from transfer
tax in certain special cases; of capital asset of a firm to a new company registered under companies Act 1994 and
the whole amount of capital gain is invested in the equity of the said company by the
In determination of the gain on transfer of any expenditure incurred solely in connection with
partners of the firm, then the capital gain shall not be charged to tax as income of the
transfer of the capital asset and the cost of acquisition including expenditure, if any, incurred
year of transfer [Section 32(11)]
for the provement of asset are deductible from the sale value. In case of acquisition of asset:
v. Transfer of Stocks and Shares of a public company by a non-resident: Capital
Events Value of cost capital assets gain arising in the hand of a non-resident from transfer of stocks or shares of a
listed company is exempted from tax provided such assessee is entitled to similar
i. By purchase the actual cost of the Actual cost of the previous owner as reduced by exemption in the country in which he is a resident [Section 31]
asset; depreciation allowance;
26. Capital Gain Tax [Second Schedule]
ii. Property acquired by gift, Where actual cost of the previous owner as
bequest or will or under a reduced by depreciation allowance. Where
Assessee New Rate Previous Rate
transfer on a trust or distribution actual cost to the previous owner cannot be AY 2013-14 AY 2012-13
of capital asset on liquidation of ascertained, fair market value of assets on the
company or solution of a firm or date on which it became the property of Tax in respect of Capital Gain:
In Case of Company: [Second Schedule,
association of persons; previous owner, shall be taken to be the cost of Para # 2(a)]
acquisition in the hand of present owner; Capital gain will be taxed as a block of 15% 15%
income separate from other income of the
25. Exemption of Capital Gains from tax [Section 32] assessee company at flat rate
Capital gains or portion thereof arising out of transfer of certain capital assets are exempted
In Case of a person other than Company: Applicable rate Applicable rate on
from the income tax under certain circumstances and upon fulfillment of certain conditions. [Second Schedule, Para # 2(b)] on total income total income including
Following are the cases of full or partial exemptions: Where the capital gain arises as result of a including capital capital gain
disposal after not more than 5 years from gain Tax payable at the rate
i. Transfer of capital asset used in the business with following rules: [Section 32(5)] the date of acquisition Tax payable at the applicable on total
Where the capital gain arises as result of a rate applicable income including said
A declaration shall have to be made before the assessment is made; disposal after 5 years from the date of on total income income @ 15% on the
acquisition; including said capital
yy a new capital asset for the purpose of business or profession has to be purchased income @ 15% on
within 1 year before or after the date of transfer; the capital
yy when capital gain is greater than the cost of new asset, capital gain upto the extent
of cost of acquisition of new asset shall be exempted and balance shall be charged 27. Income from Other Sources: [Section 33]
to tax;
Following income of an assessee is assessable under the Income from Other Sources:
yy when capital gain is equal or less than the cost of new asset, no tax shall be
charged on the capital gain; a. Dividend;
ii. Capital gain arising out of transfer of Government Securities is exempted from tax b. Interest;
[Section 32(7)]
iii. Transfer of Buildings and Lands to a new company for setting up an industry and the c. Royalties and Technical Services;
whole amount of capital gain arising out of such transfer is invested in the equity of
d. Income from letting of machinery, plant, furniture, building etc;
the said company, the capital gain shall not be charged to tax as income of the year
of transfer [Section 32(10)] e. Deemed Income [Section 19 (1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 21 & 24)]
f. Income of any kind which is not classifiable under any other heads specified in Section 20.

28. Set-Off of Losses [Section 37] Income of a religious or charitable institution derived from voluntary contributions.
iii
Whenever an assessee sustains a loss in any year under any of the following heads of income, [Para # 2]
such as, property, interest on securities, business or profession, agricultural income and other iv Income of Local Government. [Para # 3]
sources, he is entitled to set-off the loss so sustained against his income, profits or gains under v Income of Provident Fund and other Funds. [Para # 4]
any other head in that year. Any speculative transactions undertaken by an assessee should be
treated as a distinct and separate business and any loss incurred in those transactions should Traveling Allowances, etc. (to meet expenses wholly and necessarily incurred in
vi
be set-off only against the income, profits or gains of that business. Loss on Capital Gains performance of the duties of an office or employment of profit) incurred. [Para # 5]
cannot be set-off against income from any other head. Such loss can be set-off only against vii Income of Trustees on behalf of any recognized fund. [Para # 6]
the Capital Gains. Any loss from Business or Profession shall not be set off against income from Income of the personnel of the foreign missions, not being a citizen of Bangladesh.
House Property in the year such loss crop up. viii
[Para # 7]
29. Carry forward of loss [Section 38] ix Pension. [Para # 8]
x Income from dividend amounting to Taka 10,000.
Whenever an assessee sustains any loss under the head of Business or Profession not being
loss from speculation business and the loss cannot wholly be set-off against income under any xi Share of Capital Gains of a Partner of a Firm. [Para # 18]
other head i.e. salary, property, agricultural income, interest on securities and income from xii Income of a member of Hindu Undivided Family. [Para # 19]
other sources, such unadjusted loss shall be carried forward to the following year to be set-off
xiii Gratuity. [Para # 20]
against the profits and gains of the same business or profession. The only exception in this
regard is that the loss sustained in speculative business shall be carried forward to be set-off Any payment received from Provident Fund and other Funds (PF, WPPF and approved
xiv
only against speculative profits, if any, of the following year. Loss cannot be carried forward superannuation fund). [Para # 21]
for more than six successive assessment years. xv Income from dividend of a mutual fund or a unit fund upto Taka 25,000. [Para # 22A]
30. Carry forward of Depreciation Allowance [Section 42(6)] xvi Interest on tax-free Government Securities. [Para # 24]
xvii Interest on the balance in a Recognized Provident Fund. [Para # 25]
Depreciation allowance which cannot be given full effect of, in any year, because of there
being no profits or of inadequate profits, unadjusted allowances or portion thereof as the case xviii Payment received on voluntary retirement. [Para # 26]
may be, shall be carried forward to the next year or so on for succeeding years and be part of xix Income of indigenous Hillman. [Para # 27]
allowance for that year.
xx Income from export business. [Para # 28]
While setting-off loss on account of depreciation allowance, effect shall first be given to xxi Income from agriculture upto Taka 50,000. [Para # 29]
business loss (Section 38) including loss from speculation business (Section 39).
xxii Capital Gains from Machinery or Plant used in business or profession. [Para # 31A]
31. Income fully exempted from Tax subject to fulfillment of prescribed conditions and xxiii Income from the business of Software Development and Information Technology
limitations [Section 44(1) and Part A of Sixth Schedule] Enabled Services (ITES) upto 30 June 2015. [Para # 33]
Certain incomes are totally exempted from tax and they are not includable with other income xxiv Income from fisheries (not applicable to a company), poultry, production &
even for rate purpose. Income specified in Part-A of the Sixth Schedule (Exclusions from Total marketing of seeds, farming (cattle, dairy, frog & mushroom), horticulture,
Income) of the Income Tax Ordinance 1984 are exempt and excluded from the computation of floriculture and sericulture; if such income exceeds Taka 150,000 and at least 10%
total income subject to fulfillment of limits, conditions and qualifications laid down therein: of income invested in bond & govt. Securities. [Para # 34]
xxv Income from the export of handicrafts upto 30 June 2015. [Para # 35]
Income from property held under Trust but shall not apply to NGOs registered with xxvi Any amount paid by govt. as tax on behalf of Petroleum Exploration Company under
i
NGO Affairs Bureau. [Para # 1] Production Sharing Contract (PSC). [Para # 36]
Any income derived from micro credit operations by NGOs registered with NGOAB. xxvii Income from educational activities of private Agricultural College and University.
ii
[Para # 1A] [Para # 37]

xxviii Any income derived from any building situated in any area of Bangladesh (other i. The undertaking is set up in Bangladesh between 01 July 2011 and 30 June 2015;
than areas of city corporation, Cantonment board, Tongi Upazila, Naryangonj ii. The undertaking is managed either by (i) a body corporate established by or
Paurashava, Gazipur , Paurashava and any Paurashava under Dhaka district), not under an act of Parliament having head office in Bangladesh or (ii) a company
less than five storied having at least ten flats, constructed at any time between defined under Companies Act 1913 or 1994 having subscribed & paid up capital
01 July 2009 and 30 June 2014 for ten years from the date of completion of of not less than Taka 1,000,000 on the date of commencement of commercial
construction of the building has been declared tax free. production;
xxix Income from any Small and Medium Enterprise (SME) having annual turnover not
more than Taka 3,000,000. [Para # 39] iii. The undertaking is engaged in: [Section 46(B), Para # 2]
xxx Income from Zero Coupon Bond. [Para # 40] The Industrial Undertaking in the production of textile, jute, high value garments
xxxi Income from poultry farming for the period from July 2011 to June 2015. [Para # 42] (overcoats, jackets & suits), pharmaceuticals, melamine, plastic, ceramics,
sanitary, steel, fertilizer, computer and agriculture machinery, energy saving
xxxii Any profits and gains under the head Capital Gains arising from the transfer of bulbs, solar energy panel, barrier contraceptive or rubber latex etc;
stocks or Shares of a public company in listed in any stock exchange in Bangladesh
of an assessee being a non-resident subject to the condition that such assessee is Providing on commercial basis, physical infrastructure facilities;
entitled to similar exemption in the country in which he is a resident . [Para # 43]
Tourist industry as defined in the explanation to Section 46;
xxxiii An amount of income derived from cinema hall or Cineplex which starts commercial iv. 30% of the tax exempted income to be invested in the same undertaking
exhibition between the first day of July 2012 and thirtieth day of June 2015. [Para or for a new industry during the period of exemption or within one year of
# 44] expiring tax holiday period. An additional 10% profit has to be invested each
xxxiv An amount of income derived by an industrial undertaking engaged in the year within 3 months of closing the income year by purchasing shares of listed
production of rice bran oil and commencing commercial production by thirtieth companies in Bangladesh;
day of June 2015 at the specified rates. [Para # 45]
Provided that the purchase of shares of a listed company except
xxxv An amount equal to fifty percent of the income of an assessee derived from the readymade garments industry and if 40% of income re-invested between 01
production of corn/maize or sugar beet. [Para # 46] July 2008 and 30 June 2013 in the said or new industrial undertaking during
xxxvi Income of an assessee donated in an income year to any fund established by or the period or within one year from end of the period.
under the provisions of Trust of Prime Ministers Education Assistance Act 2012
subject to a maximum of : v. The undertaking is not formed by splitting up or by reconstruction or
twenty percent (20%) of income of a company or Taka eight crore, whichever is reconstitution of an existing business or by transfer to a new business of any
less. [Para # 47 (a)] machinery or plant used in Bangladesh at any time before commencement of
the new business;
Twenty percent (20%) of income of an assessee other than a company or one crore vi. An application shall be filed with the Board for approval of the undertaking
Taka, whichever is less. [Para # 47 (b)] within 6 months from the end of the month of commencement of commercial
32. Tax Holiday for newly established industrial undertaking, Tourist Industry and Physical production or operation, and the undertaking must be approved by the Board;
Infrastructure facility set-up between the period of July 2011 to June 2015 etc. in certain
vii. A clearance certificate from the Directorate of Environment shall be obtained
cases [Section 46B]
for the relevant income year.
A. Condition for Tax Holiday
B. Period of Exemption [Section 46(B), Para # 1]
Period of tax holiday has been further extended for 3 years beyond 30 June 2011 in
Dhaka and Chittagong divisions, excluding Dhaka, Narayanganj, Gazipur,Chittagong,
respect of industrial undertaking, tourist industry and physical infrastructure facility
Rangamati, Bandarban and Khagrachari districts, for a period of five years beginning
subject to following conditions:
with the month of commencement of commercial production of the said undertaking:

Period of Exemption Rate of Exemption 33. List of eligible sectors for Tax Holiday [Section 46B]
For the first two years ( 1st and 2nd year) 100% of income i. Industrial Undertaking
yy Textile; yy Insecticide & pesticide;
yy Jute goods; yy Computer hardware;
yy High Value Readymade Garments yy Residential hotel having facility of
(overcoat, jackets, suits); three star or more;
If the said undertaking is set-up in Rajshahi, Khulna and Barisal divisions, and hill
yy Pharmaceuticals; yy Petro chemicals;
districts of Rangamati, Bandarban, and Khagrachari; for a period of 7 years beginning
with the month of commencement of commercial production or operation; yy Barrier contraceptive or rubber yy Basic raw materials of drugs,
latex. chemicals & Pharmaceuticals;
Period of Exemption Rate of Exemption
yy Plastic products; yy Agricultural machine;
For the first and second year 100% of income
yy Ceramics & sanitary ware; yy Boilers & compressors;
yy Steel from iron ore; yy Textile machinery;
yy Sanitary ware; yy Energy saving bulb;
yy MS Rod & CI Sheet; yy Solar energy panel;
For the sixth year 25% of income yy Fertilizer; yy Melamine;
For the seventh year 10% of income
ii. Physical Infrastructure Facility:
Provided that an industry engaged in the production of bio-fertilizer or petro-
chemicals shall be entitled for exemption from tax even if it is set up in the districts of yy Sea or river port; yy Mono-rail & underground rail;
Dhaka, Gazipur, Narayanganj or Chittagong. yy Container terminals, internal yy Telecommunication other than
container depot (ICD) & container mobile phone
c. Computation of Tax Holiday Income
freight station (CFS);
The profit and gain shall be computed under the head income from business yy Large water treatment plant &
or profession (section 28) yy LNG terminal and transmission line;
supply through pipe line;
Loss sustained in a tax holiday undertaking shall not be set off against profits yy CNG terminal and transmission line; yy Waste treatment plant;
of taxable units. Loss shall be carried forward to be set off against income from
yy Gas pipe line; yy Solar energy plant;
same undertaking in the following years, but not beyond tax holiday period;
yy Flyover; yy Export processing zone;
Only normal depreciation allowance, if any, shall be allowed;
And any other category of industrial including as the government may be notification
Any dividend distributed by a tax-holiday company to its shareholders out of
in to official Gazette specify.
its exempted profit shall not be exempt from tax;
iii. Tourism Industry:
Capital gains earned by tax holiday undertaking shall not be exempt from tax;
Residential hotel having facility of three star or more and any other category of tourist
Income of the said undertaking resulting from disallowance made under
industry facility as the Government may by notification in the official Gazette specify.
section 30 shall not be exempted from tax;

34. Tax Holiday for Hospitals [SRO 204-Ain/IT/2005 dated 6th July 2005]
yy gas pipe line, yy Hi-tech park;
a. A newly established private hospital will be eligible for exemption of income for
yy Information and Communication Technology yy Liquefied Natural Gas (LNG)
another 5 years subject to the following conditions:
(ICT) village or software technology zone; terminal and transmission line;
b. The hospital is owned by a company registered under the Companies Act 1913 or 1994;
yy Information Technology (IT) park; yy waste treatment plant; or
c. The hospital is established between the period 1st July 1999 to 1st July 2008 in the yy large water treatment plant and supply
private sector; yy toll road and toll bridge;
through pipe line;
d. The hospital is housed in a building constructed on the companys own land; yy any other category of physical infrastructure yy renewable energy (e.g. energy
e. The hospital has number of beds (i) 200 beds in case of general hospital (ii) 50 beds facility as the Government may, by notification saving bulb, solar energy plant,
in case of specialized hospital for heart, kidney and cancer patients; in the official Gazette, specify. windmill);
f. 10% of the beds must be kept reserved for treatment of poor free of charge; The exemption shall apply to the said facility if it fulfills the following conditions, namely:-
35. Exemption from tax of newly established physical infrastructure facility set up between the that the said facility is owned and managed by-
period of July 2011 and June 2015, etc. in certain cases [section # 46C]
(i) a body corporate established by or under any law for the time being in force
Subject to the provisions of this Ordinance, income, profits and gains under section 28 from with its head office in Bangladesh; or
physical infrastructure facility (hereinafter referred to as the said facility) set up in Bangladesh
between the first day of July 2011 and the thirtieth day of June 2015 (both days inclusive) shall (ii) a company as defined in company law, 1994 with registered office in Bangladesh
be exempted from the tax payable under this Ordinance for the 10 years beginning with the and having a subscribed and paid up capital of not less than two million taka
month of commencement of commercial operation, and at the rate, specified below: on the date of commencement of commercial operation;
that thirty percent of the exempted income is invested in the said facility or in any new
Period of Exemption Rate of Exemption physical infrastructure facility during the period of exemption or within one year from
For the first and second year 100% of income the end of the period to which the exemption relates and in addition to that, another
For the third year 80% of income ten percent of the exempted income is invested in each year before the expiry of three
F or the fourth year 70% of income months from the end of the income year in the purchase of shares of a company listed
with any stock exchange, notwithstanding the provisions of this Ordinance, be subject
to tax in the assessment year for which the exemption was allowed.
For the sixth year 50% of income
For the seventh year 40% of income Provided that the quantum of investment referred to in this clause shall be reduced
For the eighth year 30% of income by the amount of dividend, if any, declared by the company enjoying tax exemption
under this section.
For the ninth year 20% of income
For the tenth year 10% of income that the said facility is approved, and during the relevant income year, stands approved
by the Board for the purposes of this section;
For the purpose of this section, physical infrastructure facility means,-
that application in the prescribed from for approval for the purposes of this section,
yy deep sea port; yy underground rail; as verified in the prescribed manner, is made to the Board within six months from the
yy elevated expressway; yy mono-rail; end of the month of commencement of commercial operation;
yy export processing zone; yy rapid transit; that the said facility maintains books of accounts on a regular basis and submits
yy flyover yy sea or river port; return of its income as per provisions of section 75 of this Ordinance.

36. Exemption of income of cooperative societies (Section-47) Sl. # Particulars
Any income derived from sale of goods, lending of money or lease of land and buildings which VIII. Donation to Zakat Fund [Para # 13]
is for personal use of the members of the co-operative societies will be exempted: IX. Contribution to Benevolent Fund and Group Insurance Scheme [Para # 17]
X. Donation of Aga Khan Development Network [Para # 21]
The entire income of the societies if it is carried on the following businesses:
XI. Donation to philanthropic or educational institution [Para # 22]
Agricultural or rural credit XII. Any sum invested in the purchase of one computer or one laptop by an
individual assessee subject to maximum Taka 100,000 for laptop and Taka
Cottage industry
50,000 for desktop. [Para # 23]
Marketing of agricultural produce of its members XIII. Any sum paid by an assessee as donation to a national level institution
set up in memory of the liberation war [Para # 24]
Purchase of agricultural implements, seeds, livestock, etc. for supplying those
to the members for agriculture purpose XIV. Any sum paid by an assessee as donation to a national level institution
set up in memory of Father of the Nation [Para # 25]
The processing which help agricultural produce turned into marketable goods XV. Any sum invested by an assessee, being an individual, in the acquisition
without any power generated manufacturing operation of any stocks or shares of a company, mutual fund or debenture listed
with any stock exchange [Para # 27]
Exception
XVI. Any sum invested by an assessee, being an individual, in the purchase of
Co-operative society does not get any exemption, if it is engaged in any Bangladesh Government Treasury Bond [Para # 28]
insurance business carried on by a mutual insurance according to paragraph
38. Rates of Corporate Tax
8 of the Fourth Schedule.
Irrespective of profit or loss all companies and every firm having gross receipts of more than
37. Investment Allowance for Tax Rebate [Section 44 (2) & (3) and Part B of Sixth Schedule]
Tk. 50,00,000 have to pay tax @ 0.50% on gross receipts as minimum Tax. Tax rates applicable
a. Maximum ceiling of Investment Allowance: Maximum ceiling for Investment Allowance for companies are as follows:
is taka 15,000,000, subject to maximum of 30% of the total income excluding
employers contribution to recognized PF & Interest thereon and actual amount of SL. New Rate Previous Rate
Assessee
investment, whichever is lower. No. AY 2013-14 AY 2012-13
b. Tax Rebate: Tax Rebate @ 15% of the eligible investment shall be allowed as Rebate. i Publicly traded Companies (other than Banks, 27.50% 27.50%
Insurance & Financial Institutions):
c. Investments eligible for Tax Rebate:
Minimum Dividend is 10%
Sl. # Particulars Publicly traded companies and declare dividend 24.75% -
I. Life insurance premium paid by an individual [Para # 1] more than 20%
II. Life insurance premium paid by Hindu Undivided Family [Para # 2] Additional Tax, if declared dividend or bonus 5% on 5% on
III. Contribution to Provident Fund and Other Funds [Para # 3, 4, 5 & 6] share rate is less than 15% [section: 16B] undistributed undistributed
IV. Investment in Unit Certificate etc [Para # 10] porfit porfit
V. Contribution in any Deposit Pension Scheme (DPS) not exceeding Taka
60,000 [Para # 11] Companies declaring dividend less than 10% or 37.50% 37.50%
VI. Donation to a charitable Hospital [Para # 11A] dividend not paid within the time
VII. Donation to organization for the welfare of the retarded people [Para
# 11B]
Continued
SL. New Rate Previous Rate SL. New Rate Previous Rate
Assessee Assessee
No. AY 2013-14 AY 2012-13 No. AY 2013-14 AY 2012-13
ii Banks, Insurance and Financial Institutions: 42.5% 42.5% xiii. Payment of Dividend: Payment of Dividend by
Excess Profit Tax (banks only): Profit in excess 15% on ex- 15% on excess companies formed under Company Act. 1994 or
50% of Capital+ Reserve cess profit profit by foreign companies (FED/702/2006/5743 and
Finance Ordinance 2008) to:
Merchant bank 37.50% 42.50%
iii Companies not publicly traded 37.50% 37.50% Non Resident Assessee: Other than non-resi- 10% 10%
dent Bangladeshi:
iv Mobile Operator Company: Company shareholders of tax treaty country
with more than 10% total shareholdings
If the company is converted into publicly 40% 35%
traded company through at least 10% share for Company shareholders of tax treaty country 20% 20%
Initial Public Offering (IPO) Subject to not more holding less than 10% of total shares of the
than 5% of pre IPO placement; company
If not converted into a publicly traded 45% 45% Company shareholders of non tax treaty 20% 20%
company with 10% share for IPO countries
v Private University: Income accrued from private 15% 15% Remittance of Profit to/by a Foreign Company 20% 20%
universities approved by University Grant
Commission and other universities which are Person or Individual 25% 25%
not public universities shall pay tax
Resident Assessee: Including non-resident 20% 20%
vi Company engaged in Diamond cutting and 15% 15% Bangladeshi:
Polishing industry Company Shareholders
vii Readymade Export oriented Garments Indus- 10% 10% Individual 10% 10%
tries
xiv. Tax in respect of Capital Gain: 15% 15%
viii Companies which manufacture of yarn related 15% 15% In Case of Company: [Sectioned Schedule, Para
production of fabrics, dying, finishing and # 2(a)]
covering of yarn Capital gain will be taxed as a block of income
ix. Textile Industries 15% 15% separate from other income of the assessee
x. Jute Industries 15% 15% company at flat rate
xi. Cigarette Manufacturing Company: In Case of a person other than Company: [Sec- At appli- At appli-
tioned Schedule, Para # 2(b)] cable rate on cable rate on
Publicly traded company 40% 35%
Non publicly traded company 45% 42.5% Where the capital gain arises as result of a including including
xii. Tax on Income Accrued from Research Institute 15% 15% disposal after not more than 5 years from the capital gain capital gain
under Trust Act date of acquisition
Continued Continued
SL. New Rate Previous Rate Rate of WDV
Assessee
No. AY 2013-14 AY 2012-13 SL except as
Class of Assets Remarks
No. otherwise
Where the capital gain arises as result of a dis- At the rate At the rate
indicated
posal after 5 years from the date of acquisition applicable on applicable on
total income total income 1) Ocean-going ships (new) 12%
including said including said The allowance is
income income 2) Ocean-going ships (Second hand) to be calculated
OR OR age at the time of purschase on the original
@ 15% on the @ 15% on the cost
capital gain capital gain
whichever is whichever is * Less than 10 years 12%
lower lower * 10 years or more 24%
xv. Income accrued outside Bangladesh to any Nil (SRO- Nil (SRO- 3) Inland ships including steamers,
of her citizen, if such income is brought into motor vessels, iron or steel flats for
Ain/IT/2004, Ain/IT/2004, 24%
Bangladesh cargo, wooden cargo boats, motor
launches and speed boats
dated dated
1) Batteries, X-Ray and electronic
13.09.04) 13.09.04)
therapeutic apparatus and 20%
xvi. Income from business of software and IT Nil Nil accessories thereto
Enabled Services (ITES) including IT Support &
2) Machinery used in the production
Software maintenance services, data entry, data
and exhibition of cinematographic 20%
processing, call centre, BPO Services, etc.
films
xvii. Capital gain arising out of transfer of govt. Nil Nil
Securities [Section 32(7)] 3) Motor vehicles, not plying for hire 20%
4) Motor vehicles, plying for hire 24%
39. Normal Depreciation Allowance and Amortization (Third Schedule, Para # 3): [section:
29(1) (viii) & (ix)] 5) Computer & computer equipments 30%
6) Bangladeshi made computer
Rate of WDV 50%
software
SL except as
Class of Assets Remarks 1) Professional & reference books 30%
No. otherwise
indicated 2) Aircraft, aero-engine and aerial
30%
photographic apparatus
a) Building 10%
i 3) Moulds used in the manufacture of
b) Factory building 20% 30%
glass or plastic goods or concrete pipe
ii Furniture & fittings 10% Mineral of concerns 30%
iii Machinery & plant 1) Below ground installation 30%
a) General rate 20% 2) Above ground installations, that is
b) Special rates- to say, portable boilers, drilling tools, 30%
Ships well-head tanks and rigs
Continued Continued
Rate of WDV - For the first year in which the undertaking 50% of the actual cost of plant and
SL except as starts commercial production machinery to the assessee
Class of Assets Remarks
No. otherwise
indicated - For the next following second year 30% of the actual cost of plant and
Physical infrastructure undertaking 30% machinery to the assessee
1) Bridge 2%
- For the next following third year 20% of the actual cost of plant and
2) Road 2% machinery to the assessee
3) Fly over 2%
The assets enjoying accelerated depreciation will not be eligible for any other depreciation
In case of motor vehicles, being passenger vehicles or sedan cars, not plying for hire cost for under the Income Tax Ordinance.
the purpose of depreciation is restricted to Taka 2,000,000.
The undertaking must fulfill all the prescribed conditions and apply to Board in the prescribed
40. Amortization of License fees [Section 29 (1) (VIIIa)/Third schedule Para 10A] manner for approval for the purpose of deprecation of this category within six months from
Addition of new paragraph 10A after paragraph 10: the end of the month of commencement of commercial production. Board is to give decision
on the application within 45 days [Section 46A (3) or 46B (6)].
10A. (1) Amortization of license fees.- (1) Where an assessee, - being a resident company, paid
any sum as license fees on or after the first day of July, 2012 wholly and exclusively Accelerated depreciation is also allowable on machinery and plant other than office
for the purpose of obtaining a permission from any authority = authorised by the appliances and road transport vehicles which having not being previously used in Bangladesh,
government applicable for two or more years to run a business, the assessee shall be has been or is used in the expansion unit of any existing undertaking or in the treatment and
allowed a deduction of an amount proportionate to such years and such deduction disposal of toxic and environmentally hazardous wastes or in the collection or processing of
shall continue till the last year of the period for which the license was granted. biodegradable waste or in the research and development in any industrial undertaking owned
by a company. In this case accelerated depreciation is allowed at 80% for 1st year (starts
(2) For the purpose of this paragraph, license fees means Spectrum Assignment fees paid commercial production or operation) and 20% for the next following year [Para # 7A (1)].
by a cellular mobile phone operator.
43. Withholding Tax / Tax Deducted at Source (TDS) [Section # 50, 51, 52, 53, 54, 55 & 56]
41. Initial depreciation: [Third Schedule, Para # 5A]
Where any building has been newly constructed or any machinery or plant has been in Bangladesh All taxes deducted or collected in accordance with the section 48 to 74, shall be paid to the
after 30th June 2002, an amount by way of initial depreciation allowance in respect of the year credit of govt. by e-payment, challan or pay order within 3 weeks from the date of such
of construction or installation or the year in which such building, machinery or plant is used by deduction or collection and all taxes deducted or collected shall be deposited to Bangladesh
the assessee for the first time for the purpose of his business or profession or the year in which Bank or Sonali Bank, except deduction from
commercial production is commenced, whichever is later, shall be allowed at the following rates:
Supply of goods or execution of contracts (u/s-52)
In the case of building - 10% of the cost;
In the case of machinery or plant other than ships or motor vehicles not plying for hire 25% of Professional or technical service fee (u/s-52A)
the cost; House property (u/s-53A)
42. Accelerated Depreciation [Third Schedule, Para # 7 & 7A]
Commission or fees (u/s-53E)
In the case of any machinery or plant (other than office appliance and road transport vehicles)
which not having been previously used in Bangladesh, has been or is used in an industrial For the above four cases, cheque equivalent to deducted amount needs to be issued in
undertaking set up in Bangladesh between the first day of July, 1977 and the thirtieth day favor of concerned DCT and send to the person [u/s-2(46)] from whom tax has
of June 2012 (both days inclusive) accelerated depreciation allowance shall be allowed and been deducted subject to production of counter foil of treasury challan. Provided that if the
computed as follows: person is not resident in Bangladesh, exception will not be applicable.

44. Rates of tax at source: SL. Section/ Rate of
Particulars
No. Rule # deduction (%)
SL. Section/ Rate of
Particulars 5 52 (1) & Indenting commission received through remittance 7.5
No. Rule # deduction (%)
Rule 17
1 50 Salaries and benefits: Average rate Shipping agency commission received through 5
On first Taka 220,000 (Male Assessee); Nil remittance
On first Taka 250,000 (Female Assessee); Nil
On first Taka 250,000 (Assessee aged 65 & more); Nil 6 52 A (1) Fees for services rendered by Doctors, Accountants, 10
On first Taka 300,000 (Physically challenged Assessee); Nil Engineers & Consultants
On next Taka 300,000; 10
On next Taka 400,000; 15 7 52A(2) Royalty or Technical Know How Fee 10
On next Taka 300,000; 20 8 52 A (3) Fees for Professional or Technical Services 10
On the rest of the balance 25 - if furnishes TIN
2 50 A Discount of the real value of Bangladesh Bank bills
Individual 27.5 or 37.5 or Fees for Professional or Technical Services 15
Company 42.5 or 45 - if fails to furnish TIN
whichever is
applicable 9 52AA Payments of Commission to Stevedoring Agency and 10
any Other Services not covered under sections # 52
3 51 Interest on securities excluding treasury bond or 10
treasury bill issued by the government Payment for Private Security Services 1.5
4 52 (1) & In case of Supply of goods or execution of Contracts, 10 52AAA Commission to Clearing & Forwarding agents 10
Rule 16 subcontracts, local L/C, payment of Indenting or
Shipping Agency Commission locally:
11 52 B Collection of tax from Cigarette Manufacturers 10
Where the cumulative payment does not exceed Taka Nil
200,000 12 52 C Compensation against Acquisition of Property:
Where the cumulative payment exceeds Taka 200,000 1 Immovable property situates within city corporation,
but does not exceed Taka 500,000 paurashava or Cantonment board area 2
Where the cumulative payment exceeds Taka 500,000 2.5 Immovable property situates outside of city 1
but does not exceed Taka 1,500,000 corporation,paurashava or Cantonment board area
Where the cumulative payment exceeds Taka 1,500,000 3.5 13 52 D Interest on saving instruments [Interest on 5
but does not exceed Taka 2,500,000 sanchayapathra purchased after 01 July 2011]
Where the cumulative payment exceeds Taka 4
14 52 F Collection from brick manufacturers (at the time of
2,500,000 but does not exceed Taka 30,000,000
permission for manufacture of bricks):
Where the cumulative payment exceeds Taka 30,000,000 5 - for one section brick field Tk. 30,000
- for two section brick field Tk. 45,000
In the case of supplied by oil marketing company
- for three section brick field Tk. 60,000
Where the payment does not exceed Taka 200,000 Nil
15 52 I Commission of Letters of credit 5
Where the payment exceeds Taka 200,000 0.60
Continued Continued
SL. Section/ Rate of SL. Section/ Rate of
Particulars Particulars
No. Rule # deduction (%) No. Rule # deduction (%)
16 52 K Renewal of trade license by City Corporation or Paurashava: 27 53 B & Export of manpower (service charges) 10
For Dhaka City Corporation or Chittagong City Tk 500 Rule 17C
Corporation 28 53 BB Collection of tax from export of knitwear and woven 0.80
In any City Corporation, other than Dhaka City Tk . 300 garments
Corporation and Chittagong City Corporation
29 53 BBB Collection of tax from Member of stock exchanges 0.05
In any paurashava at any district headquarter Tk. 300 (bond has been omitted from members portfolio)
In any other paurashava Tk. 100
30 53 BBBB Collection of tax from export of any goods except 0.80
17 52 M Collection from freight forward agency commission 15 knitwear and woven garments
18 52 N Rental power company 4 31 53 C & Collection of tax on sale price of goods or property 5
Rule 17D sold by public auction
19 52 O Collection of tax for making payments or giving credit to a 5
foreign technician serving in a diamond cutting Industry 32 53 CC Deduction or collection of tax at source from courier 15
business of a non resident
20 52 P Services from convention hall, conference centre, etc. 5
33 53 D Payment to actors, actress, producers etc. Exceeding 10
21 52 Q Credit or Payment to the account of any resident 10
Tk. 10,000
out of remittances received from abroad by way of
Service Charge / Consultancy Fee/ Commission / 34 53 DDD Deduction from export cash subsidy 5
Remuneration or other Fees 35 53 E(1) Commission, discount or fees on account of 10
22 52R Deduction of tax from receipts in respect of marketing or distribution of goods
international phone call 53 E(2) Company (other than oil marketing company) shall 5
On total amount of international phone call received collect tax on the difference between the sale price
1
through International Gateway (IGW) to the distributor or other persons and the retail price
fixed by the company
On the amount of international phone call paid or
credited by International Gateway(IGW) services 36 53 EE Commission or remuneration paid to agent or 7.5
5
operator to the account of Interconnection representative of a foreign buyer as per terms of L/C
Exchange (ICX ), Access Network Services (ANS) or or under any other instructions
any other person under any agreement with BTRC
37 53 F Interest on Savings and Fixed Deposits or any term
23 52 S Collection of tax from manufacturer of soft drink 3 deposit maintained with schedule bank including a
corporation, bank or by way of profit on term deposits,
24 53 & Rule Collection of tax from importers. The board shall 5 financial institutions, Leasing Company or housing
17A specify from whom collection to be made company
25 53A Payment of rent to landlord 5 For TIN holder 10
For assessee Without TIN having deposit above 15

26 53 AA Collection of tax from shipping business of a resident:
Taka 1,00,000
Freight received or receivable in or out of Bangladesh 5
Freight received or receivable from service rendered 10
For assessee Without TIN having deposit less
between two or more countries 3 than Taka 1,00,000
Continued Continued
SL. Section/ Rate of SL. Section/ Rate of
Particulars Particulars
No. Rule # deduction (%) No. Rule # deduction (%)
38 53 FF Collection of tax from persons engaged in real 41 53 H Collection of tax on transfer, etc. of property:
estate or land development business: -- On deed value within the jurisdiction of RAJUK and CDA 3
In case of building or apartment - -- On deed value within the jurisdiction of Dhaka and
Building for residential purpose: Chittagong districts excluding RAJUK, CDA, Gazipur, 2
Situated at Gulshan, Banani, Baridhara, Moti- Tk. 1,600 per Narayanganj, Munshiganj, Manikganj and Narsingdi
jheel and Dilkusha of Dhaka square meter districts, City corporation excluding Dhaka South
City Corporation, Dhaka North City Corporation
Situated at DOHS, Dhanmondi, Mohakhali, Tk. 1,500 per and Chittagong City Corporation, paurashava,
Lalmatia, Uttara, Bashundhara, Cantonment, square meter cantonment board
Kawran Bazar of Dhaka and Khulshi, Pan- -- On deed value for any areas other than areas 1
chlaish, Nasirabad & Agrabad of Chittagong mentioned above.
42 53 I Interest on deposit of Post Office Savings Bank 10
Other areas in Bangladesh Tk. 600 per Account, deductible only when total interest exceeds
square meter Tk. 150,000 and TDS applicable only on the interest in
excess of Tk. 150,000
Building not for residential purpose: 43 53 J Payment of rental value of vacant land or plant 5
44 53 K Advertising bill of newspaper or magazine or private 3
Situated at Gulshan, Banani, Baridhara, Moti- Tk. 6,500 per television channel and private radio station
jheel and Dilkusha of Dhaka square meter
45 54 Deduction from Dividends:
Situated at DOHS, Dhanmondi, Mohakhali, Lal- -- Company beneficiary for non-tax treaty countries
Tk. 5,000 per 20
matia, Uttara, Bashundhara, Cantonment, Kaw- square meter -- Company beneficiary for tax treaty countries
10
ran Bazar, of Dhaka and Khulshi, Panchlaish, -- Company beneficiary for tax treaty countries having
Nasirabad & Agrabad of Chittagong 20
less than 10% shareholding
-- Resident Company with more than 10% 20
Tk. 1,600 per
Other areas in Bangladesh. shareholding
square meter
-- Individual: Resident & Non-resident Bangladeshi 10
In case of land: -- Individual: Non resident Foreigner 25
On deed value for Dhaka, Gazipur, Narayanganj, 5
Munshiganj, Manikganj, Narsingdi and Chit- 46 55 & Rule Income from lottery etc. 20
tagong districts 17
47 56 Deduction from income of non-residents: Rate applicable
On deed value for any other district 3 Company to company, i.e.,
37.5%
39 53 G Payment of insurance commission 5
Person other than company & non-resident Bangladeshi 25
40 53 GG Payment of fees / remuneration to surveyor of 15 Non resident Bangladeshi Rate applicable

General Insurance Company for resident
individual
Continued
45. Form of Return of WithholdingTax under Income Tax Ordinance, 1984 (Ord. XXXVI OF 1984) 8. Particulars of tax deducted or collected:
(Return under section 75A) Payment

Rate of Amount of
Section
FOR COMPANY TAXPAYERS ONLY Type of during Tax
SL. of I.T.O, deduction/
payment the deduction /
1. Name of the Company: 1984 collection
quarter collection
- - (1) (2) (3) (4) (5) (6)
2. TIN/UTIN: 1. Salary 50
2. a. Payment to 52
- -
contractors/
3. TCAN - supplier
4. (a) Circle:. (b) Taxes Zone: b. Indenting 52
commission
5. Deduction/Collection Period: c. Shipping 52
agency
1st quarter (July-September),......................................................... Year ... .. ;
commission
2nd quarter (October-December),.................................................. Year ... .. ; 3. a. Service of 52A(1)
doctor
3rd quarter (January-March),.......................................................... Year ... .. ;
b. Royalty or 52A(2)
4th quarter (April-June),.................................................. ............... Year ... .. ; technical
know-how fee
c. Fees for 52A(3)
6. (a) Address: professional
& technical
(b) Phone: services
4. a. Payment 52AA
(c) Fax No.:
for private
(d) E-mail: security
service
(e) Web address: http://www... b. Payment to 52AA
7. Contact person: Stevedoring
agencies
(a) Name: c. Any other 52AA
service
(b) Designation:
5. L/C commission 52I
(c) Telephone: ... . 6. Freight forward 52M
(d) Mobile: agency
commission
(e) E-mail: ...
Continued
Payment Amount of Payment Amount of
Section Rate of Section Rate of
Type of during Tax Type of during Tax
SL. of I.T.O, deduction/ SL. of I.T.O, deduction/
payment the deduction / payment the deduction /
1984 collection 1984 collection
quarter collection quarter collection
(1) (2) (3) (4) (5) (6) (1) (2) (3) (4) (5) (6)
7. Payment to 52O 16. Collection of tax 53BBBB
foreign technician from export of
serving in any good except
diamond cutting certain items.
industry 17. Receipt from 53C
8. Payment for 52P public auction
services 2P from 18. Courier business 53
convention hall etc. of a non-resident.
9. Payment to 52Q. 19. Payment to actor/ 53D
resident person actress.
against services
19A Deduction of tax 53DDD
provided person
at source from
9A Deduction of tax 52R export cash
from the service subsidy
of international
20. Payment as 53E(1)
gateway service
commission or
in respect of
discount for
phone call
distribution of
10. Collection 52S goods.
of tax from
manufacturer of 20A. Company, other 53E(2)
soft drink than oil marketing
11. House/office rent 53A 53A company, shall
12. Collection of tax from 53AA collect tax on
shipping business of a the difference
resident between the sale
13. Receipt from 53B price to the dis-
export of tributor or other
manpower persons and the
14. Collection of tax 53BB retail price fixed
from export of by such company.
knit-wear and
woven garments. 21. Payment to 53EE
15. Collection of tax 53 foreign buyers
from member agent.
of stock exchanges
Continued Continued
10. Tax shall be deposited to respective account code according to the following table:
Payment Amount of
Section Rate of Income tax- Income tax-
Type of during Tax Name of the Zone Other Fees
SL. of I.T.O, deduction/ Person Company
payment the deduction /
1984 collection Taxes Zone-1, Dhaka 1-1141-0001-0111 1-1141-0001-0101 1-1141-0001-1876
quarter collection
(1) (2) (3) (4) (5) (6) Taxes Zone-2, Dhaka 1-1141-0005-0111 1-1141-0005-0101 1-1141-0005-1876
22. Interest on 53F Taxes Zone-3, Dhaka 1-1141-0010-0111 1-1141-0010-0101 1-1141-0010-1876
savings and fixed Taxes Zone-4, Dhaka 1-1141-0015-0111 1-1141-0015-0101 1-1141-0015-1876
deposit.
Taxes Zone-5, Dhaka 1-1141-0020-0111 1-1141-0020-0101 1-1141-0020-1876
23. Insurance 53G
commission. Taxes Zone-6, Dhaka 1-1141-0025-0111 1-1141-0025-0101 1-1141-0025-1876
24. Payment to 53GG Taxes Zone-7, Dhaka 1-1141-0030-0111 1-1141-0030-0101 1-1141-0030-1876
surveyor of Taxes Zone-8, Dhaka 1-11410035-0111 1-1141-0035-0101 1-1141-0035-1876
general insurance.
Taxes Zone-9, Dhaka 1-1141-0080-0111 1-1141-0080-0101 1-1141-0080-1876
25. Rental value of 53J
Taxes Zone-10, Dhaka 1-1141-0085-0111 1-1141-0085-0101 1-1141-0085-1876
vacant land, plant
or machinery. Taxes Zone-11, Dhaka 1-1141-0090-0111 1-1141-0090-0101 1-1141-0090-1876
Taxes Zone-12, Dhaka 1-1141-0095-0111 1-1141-0095-0101 1-1141-0095-1876
26. Advertising bill 53K
of newspaper or Taxes Zone-13, Dhaka 1-1141-0100-0111 1-1141-0100-0101 1-1141-0100-1876
magazine. Taxes Zone-14, Dhaka 1-1141-0105-0111 1-1141-0105-0101 1-1141-0105-1876
27. Transfer of 53M Taxes Zone-15, Dhaka 1-1141-0110-0111 1-1141-0110-0101 1-1141-0110-1876

securities Taxes Zone, Narayangonj 1-1141-0115-0111 1-1141-0115-0101 1-1141-0115-1876
by sponsor Taxes Zone, Gazipur 1-1141-0120-0111 1-1141-0120-0101 1-1141-0120-1876
shareholders.
Taxes Zone, Mymenshing 1-1141-0125-0111 1-1141-0125-0101 1-1141-0125-1876
28. Dividends. 54
Taxes Zone, Comilla 1-1141-0130-0111 1-1141-0130-0101 1-1141-0130-1876
29. Lottery. 55
Taxes Zone, Chittagong 1-1141-0135-0111 1-1141-0135-0101 1-1141-0135-1876
30. Payment to non- 56
Taxes Zone, Bogra 1-1141-0140-0111 1-1141-0140-0101 1-1141-0140-1876
resident.
Large Taxpayer Unit (LTU 1-1145-0010-0111 1-1145-0010-0101 1-1145-0010-1876
Verification
Central Survey Zone 1-1145-0005-0111 1-1145-0005-0101 1-1145-0005-1876
9. I, .................................................................... designation........................... s o l e m n l y Taxes Zone-1, Chittagong 1-1141-0040-0111 1-1141-0040-0101 1-1141-0040-1876
declare that to the best of my knowledge and belief the information given in this
Taxes Zone-2, Chittagong 1-1141-0045-0111 1-1141-0045-0101 1-1141-0045-1876
return is correct and complete.
Taxes Zone-3, Chittagong 1-1141-0050-0111 1-1141-0050-0101 1-1141-0050-1876
Place:
Taxes Zone- Khulna 1-1141-0055-0111 1-1141-0055-0101 1-1141-0055-1876
Date: Signature and seal Taxes Zone- Rajshahi 1-1141-0060-0111 1-1141-0060-0101 1-1141-0060-1876
NB: 1. The return shall be accompanied by a statement of deduction or collection of Taxes Zone- Rongpur 1-1141-0065-0111 1-1141-0065-0101 1-1141-0065-1876
tax along with copy of treasury challans or payment orders. Taxes Zone-Sylhet 1-1141-0070-0111 1-1141-0070-0101 1-1141-0070-1876
Taxes Zone- Barisal 1-1141-0075-0111 1-1141-0075-0101 1-1141-0075-1876

Name of the Zone Income tax- Person & Company income not exceeding Taka 300,000 (Taka Three Lac) from business or profession may opt not
to submit his/her lifestyle statement. This will be effective from Assessment Year: 2013-2014.
Appeallate Zone-1 1-1143-0001-1876
Appeallate Zone-2 1-1143-0005-1876 50. Filing of Return of Income and Statement [Section 75, 76, 77 & 78]
Appeallate Zone-3 1-1143-0010-1876 Every person whose total income during an income year exceeds the exemption limit i.e. the
Appeallate Zone-4 1-1143-0035-1876 maximum amount which is not chargeable to tax and every person whatever his income in the
income year who was assessed to tax for any year within three years preceding that year, shall
Appeallate Zone- Rajshahi 1-1143-0040-1876 furnish a return setting forth therein (along with such other particulars as may be prescribed)
Tribunal Fee 1-1143-0015-1876 his total income and total income during the income year.
I.R.C 1-1731-0001-1801
Every company shall file a return of its income or the income of any other person for whom the
VAT Deposit 1-1133-0000-0311 company is assessable, on or before the date specified.
Affix Stamp 1-1101-0020-1301
Where a person is not required to file a return under sub-section 1 of section 75, he is to file a
46. Advance Payment of Tax [Section 64] return if he:
The ceiling of the amount of income for payment advance tax is Taka 400,000; [Section 64] a. resides in a city corporation or paurashava, or divisional head quarters or district head
The new assesses have been exempted from the payment of advance tax unless their income quarters and fulfils any of the following conditions:
exceeds Taka 400,000; [Section 68]
i. owns a more than one story building with an area of more than 1,600 sft;
Advance tax is payable by an assessee during each financial year if the latest assessed income
(assessment completed either on regular or provisional basis before the fifteenth May of ii. owns a motor car;
the year) exceeds Taka 400,000. Advance tax is payable in four equal installments on 15th
iii. subscribes a telephone;
September, 15th December, 15th March and 15th June. If one estimates that ones income during
any financial year will be less than the last assessed income, one may submit an estimate of iv. is a member of club registered under VAT Act 1991;
income of ones own and that the tax paid on the basis of the estimate does not fall short of
b. runs a business or profession with trade license from a city corporation or
75% of the tax payable on regular assessment. Because, if the tax paid falls short he is liable
paurashava, union parishad and operates a bank account;
for interest [Section 73].
c. is registered with a recognized professional body as a doctor, dentist, ITP, CA,
47. Payment on the Basis of Return [Section 74(1)]
CMA, engineer, architect, surveyor or any similar profession.
Every person who is required to file a return under Sections 75, 77, 78, 89 (2), 91 (3) & 93 (1) d. member of a club or a trade association;
shall, on or before the date on which he files the return, pay the amount of tax payable by
him on the basis of such return or tax liabilities, if applicable, as per provision of section e. is a candidate for an office of paurashava or a city corporation or a member of
#16CCC as reduced by the amount of any tax deducted from this income or paid by him. a parliament;
48. Mode of payment of Tax by assessee (Rule-26A) f. participant in a tender floated by government, semi-government, autonomous
body or local authority;
All payments of Tax U/S-64,70,73,74,82D,83(2),84,89(3),107(2)(a),120,121(4)(a),123-129,135
g. has a tax payers identification number in accordance with the provision of
(2),137(1),154(1), 158(5),160(1) and any other payments shall be made by pay order or demand
section 184A;
draft or account payee cheque of scheduled bank in favor of concerned DCT.
h. any non government organization registered with NGO Affairs Buraeu.
Provided that payment does not exceed Taka 10,000 can be made through treasury challan.
Every individual shall furnish, along with the return or the certificate, as the
49. Return of statement of lifestyle [Section # 75 (2) (d) (i)] case may be, a statement in the prescribed form and verified in the prescribed
An individual note being a shareholder Director of a company, having income from Salary or manner giving particulars of the total assets and liabilities of himself,

his spouse and his minor children and dependants. He shall also furnish and functions of the DCT shall be concurrently exercised by such other authority as may be
particulars of his personal and family expenditure as per proforma determined specified by the board.
by the board to be called life-style as per rule 25A:
54. Assessments
Provided that an individual, not being a shareholder director of a company, having
income from salary or income not exceeding three lakh taka from business or i. Assessment on Correct Return: [Section 82]
profession may opt not to submit such statement;
Where a return or a revised return has been filed under Chapter VIII and the Deputy
In the case of a company the return will be accompanied by a statement of accounts Commissioner of Taxes is satisfied, without requiring the presence of the assessee
audited by a chartered accountancy firm. or the production of any evidence, that the return is correct and complete, he shall
assess the total income and determine the tax payable by him on the basis of such
51. Return of withholding tax [Section # 75A and Rule # 24A] return and communicate the assessment order to the assessee within thirty days next
following: Provided that-
Every person, being a company, shall file or cause to be filed, with the deputy commissioner of
taxes where he is being assessed, a return of withholding tax collected or deducted at source. Such return shall be filed on or before the date as specified in clause (c) of sub section
The return shall be submitted on quarterly basis within 15th day of October, January, April and (2) of section 75;
July of each financial year. Following conditions are applicable for the return:
The amount of tax payable shall be paid on or before the date on which the return is
Return of withholding tax shall be in prescribed form specified in Rule # 24A; filed; and
Return shall be submitted in Tax Circle in which companys tax assessment is being Such return does not show any loss or lesser income than the last assessed income, or
made; assessment on the basis of such return does not result in refund;
Return submission is mandatory for any amount of tax if deducted at source; ii. Universal Self Assessment [Section 82 BB]
Time extension of 15 days may be allowed by DCT; Where an assessee furnish a correct and complete return of income, the DCT
shall receive such return himself or cause to be received by any other official
Return shall be signed by chief official of the entity; and issue a receipt of such return and, the receipt shall be deemed to be
Summary of tax deducted at source and related treasury challans or payment orders an order of assessment for the assessment year for which the return is filed.
shall be affixed with the return; A return shall be taken to be complete, if it is filed in accordance with the
Penalty shall be imposed under section # 124 if return is not submitted within provisions of sub-section (2) or (3) of section 75.
prescribed time period; The amount of tax payable shall be paid on or before the date on which the
If any person fails to collect, deduct or credit the tax, the assessee shall be treated as return is filed in accordance with section 74.
assessee in default. The Board or any authority authorized by the Board may select a number of
52. Obligation to furnish Annual Information Return [Section # 75B] such returns filed may refer to the DCT for the purpose of audit to make the
assessment under section 83 or 84.
Government may, by notification in the official gazette, require any person or group of persons
responsible for registering or maintaining books of account or other documents containing No question as to the source of investment made by a new assessee deriving
a record of any specified financial transaction, under any law for the time being in force, to income from business or profession shall be raised, if he shows income at least
furnish an Annual Information Return, in respect of such specified financial transaction. not less than 25% of the capital invested in business or profession and pays
tax on such income before filling of income.
53 Concurrent jurisdiction [Section # 75C]
The initial capital investment of business or profession or any fraction of such
Board may, by general or special order in writing, direct that in respect of all or any initial capital shall not be transferred from that business or profession within
proceedings relating to receiving of return of income and issuance of acknowledgement the income year when the investment was made or within five years when the
thereof in accordance with the provisions of sections 75, 77, 78, 89(2), 91(3) or 93(1), the power investment was made or within five years from the end of that income year.

55. Some final settlement of tax liability [section # 82C] Final discharge of tax liability shall not be applicable subject to following condition:
Tax deducted or collected at source in accordance with the provisions mentioned below shall Tax deduction or collection at source shall not be adjusted against refund due for earlier year or
be deemed to be the final discharge of tax liability from that source. These are as follows: years or refund due for the assessment year from any source other than mentioned in this section;
Section references Sources of tax deduction or collection Income from the sources mentioned in this section shall be determined on the basis of the tax
deducted or collected at source and the rate or rates of tax applicable for the assessment year;
Section # 52 Payment on account of supply of goods or execution of contract or
local Letter of Credit (L/C) This income mentioned in earlier clause shall not be set off against loss;
Section # 52A(2) Payment on account of royalty, fees for technical services Any income shown or assessed in excess of the amount mentioned in earlier clause shall be
Section # 52AAA Commission from clearing and forwarding agency business liable to tax at the rate applicable for the assessment year;
Section # 52B Value of banderols computed on account of manufacturer of cigarettes
Any income not admissible as allowances under section # 30 shall be added to this income;
Section # 52C Compensation against acquisition of property
Section # 52N Amount received by sale of rental power by rental power companies 56. Assessment on the basis of Report of a Chartered Accountant [Section 83AAA]
Section # 52O Salaries of foreign technician serving in a diamond cutting industry Where a return or a revised return filed by a company is reasonable believed to be incorrect
Section # 52R Amount received by International Gateway (IGW) services operator or or incomplete, the Board may appoint a registered Chartered Accountant to examine the
Interconnection Exchange (ICX) in respect of international phone call accounts of that assessee.
Section # 53 Goods imported, not being goods imported by an industrial
The Chartered Accountant shall exercise the powers and functions of the DCT and after
undertaking as raw materials for its own consumption
examining the accounts shall submit a report to the Board in writing. The Board shall forthwith
Section # 53AA Amount received or receivable from shipping business of a resident forward the report to the Deputy Commissioner of Taxes and the Deputy Commissioner of
Section # 53B Amount received on account of export of manpower Taxes after giving an opportunity to the assessee shall make the assessment on the basis of
Section # 53BB Amount received on account of export of certain items the report of the chartered Accountant and on the basis of the other evidences within thirty
Section # 53BBB Amount received on account of transaction by a member of stock days after completion of hearing or consideration as the case may be and communicate the
exchange order within thirty days from the date of such order.
Section # 53C The amount of auction purchase 57. Assessment and computation of Income of Contractor of an Oil company (Rule 39)
Section # 53CC Amount received on account of courier business of a non-resident
1. Any person/company who resides out of Bangladesh and carries on business
Section # 52DDD Amount received on account of Export cash subsidy in Bangladesh under an agreement as a contractor to an oil company or as a
Section # 53FF Amount received from persons engaged in real estate or land subcontractor to the contractor to an oil company engaged in Petroleum Operations
development business in Bangladesh for exploration and development of oil & gas may exercise an option
Section # 53G The amount of remuneration or reward, whether by way of commission or ascertainment of income, profits and gains from the operation of drilling of oil,
or otherwise payable to an insurance agent geophysical survey, marine seismic survey, shallow water seismic survey and other
Section # 53GG The amount representing the payment on account of survey by activities relating to petroleum operations, under Rule 39.
surveyor of a general insurance company
In such case his income, profits and gains derived from such operations shall, subject
Section # 53H The amount of value of property to the provision of this rule, be deemed to be an amount equivalent to 10% of the gross
Section # 53L The premium received from raising of share at a premium over face value earrings from such operations provided that:
Section # 53M Income received from transfer of securities or mutual fund units by
sponsor shareholders of a company a. such option shall be exercised before the 30th day of September of the year of
assessment in which such person is assessable for the first time in Bangladesh.
Section # 55 & 19(13) The amount on account of winnings
b. the option once exercised shall be treated as final and shall be applicable to
Provided that final discharge of tax liability shall not be applicable for a contractor of an oil
all assessments thereafter.
company or a sub-contractor to the contractor of an oil company [section # 52, 82C & rule # 39]

2. For the purposes of the Rule 39: (2) International transaction means a transaction between associated enterprises,
either or both of whom are non- residents, in the nature of purchase, sale or lease
a. The expression income, profits and gains shall mean the net income, profts and
of tangible or intangible property, or provision of services, or lending or borrowing
gains determined after considering all expenses, allowances and depreciation
money, or any other transaction having a bearing on the profits, income, losses,
as allowed for the purposes of sections 28, 29 and 30 of the Ordinance;
assets, financial position or economic value of such enterprises, and includes-
b. the expression gross earnings shall include the total value of all fees, moneys,
(a) a mutual agreement or arrangement between two or more associated
income, compensations or reimbursable costs as stipulated in the agreement
enterprises for the allocation or apportionment of, or any contribution to, any
with the oil company, or in the agreement with the contractor to the oil
cost or expense incurred or to be incurred in connection with a benefit, service
company (whether in cash or in kind and whether received or not) derived
or facility provided or to be provided to anyone or more of such enterprises;
from the operations referred to in sub-rule by the person but excluding the
amount of tax, if any, paid or payable on behalf of the said persons, as reduced (b) a transaction entered into by an enterprise with a person other than an
by the following amounts- associated enterprise, if there exists a prior agreement in relation to the
amount constituting compensations or reimbursements exclusively relevant transaction between such other person and the associated enterprise,
for expenditures effected by the said person for the purchase or the terms of the relevant transaction are determined in substance between
of equipments for the oil company, which are, in fact, not his such other person and the associated enterprise;
responsibility; and
(3) Uncontrolled transaction means a transaction undertaken between enterprises not
amount constituting compensations or reimbursements exclusively for being the associated enterprises.
expenditures effected by the said person for the purpose of transporting
or moving, drilling and other equipments into and out of Bangladesh 60. Determination of income from international transaction having regard to arms length price
[Section #107B]
58. Assessments under other sections
The amount of any income, or expenditure, arising from an international transaction shall be
a. Spot Assessment u/s 82D and Rule 38B; determined having regard to the arms length price.
b. Provisional Assessment u/s 81;
61. Reference to Transfer Pricing Officer [Section # l07D]
c. Best Judgment Assessment u/s 84;
Deputy Commissioner of Taxes, with prior approval of the Board, may refer the determination
d. Assessment in thend case of discontinued business u/s 89; of the arms length price to the Transfer Pricing Officer, the Transfer Pricing Officer, with prior
approval of the Board, may proceed to determine the arms length price in relation to any
e. Assessment in the case of Deceased Persons u/s 92;
international transaction.
f. Assessment in the case of departure from Bangladesh u/s 91;
62. Maintenance and keeping of information, documents and records [Section # l07E]
g. Assessment in the case of Minors, Lunatics, Idiots, Beneficiaries of any Trust,
etc. u/s 95; (1) Every person who has entered into an international transaction shall keep and
maintain such information, documents and records as may be prescribed.
h. Assessment of Co-operative Societies u/s 47;
(2) The Board may prescribe the period for which the information, documents and records
59. Transfer Pricing shall be kept and maintained.
In section 107A, following definitions on Transfer Pricing have been mentioned:
(3) The Deputy Commissioner of Taxes may, by notice in writing, require any person to
(1) Arms length price means a price in a transaction, the conditions (e.g. price, margin furnish any information, documents and records within the notice period.
or profit split) of which do not differ from the conditions that would have prevailed
in a comparable uncontrolled transactions between independent entities carried out 63. Report from an accountant to be furnished [Section# 107F]
under comparable circumstances; Every person who has entered into international transaction or transactions the aggregate
of value which, as recorded in the books of account, exceeds three crore Taka during an

income year shall furnish, on or before the specified date in the form and manner as may be 67. Most appropriate method [Rule#72]
prescribed, a report from a Chartered Accountant.
The most appropriate method for determining the arms length price of an international
64. Provision of penalty on transfer pricing [Section# 107G, 107H, and 107I] transaction shall be the method that, under the facts and circumstances, provides the most
reliable measure of an arms length price in relation to the international transaction.
References Particulars Penalty 68. Information and documents to be kept and maintained under section l07E [Rule#73]
Section# 107G Penalty for failure to keep, A penalty not exceeding one percent
maintain or furnish information, of the value of each international
ownership profile of the multinational group in which the assessee enterprise is a
member
documents or records to the transaction
Deputy Commissioner of Taxes business profile of the group
Section # 107H Penalty for failure to comply with A penalty not exceeding one percent Brief business profiles of each of the member of the group
the notice or requisition of the value of each international
transaction
information on the business relationship
Section#107I Penalty for failure to furnish report A penalty of a sum not exceeding consolidated financial statement of the group
from a Chartered Accountant three lac Taka profile of the assessee enterprise and each of the associated enterprises operating in
65. Determination of arms length price under section 107C [Rule#70] Bangladesh, including tax and VAT registration number, IRC & ERC numbers, address
and locations of activity centers etc
(a) Comparable uncontrolled price method: The price charged or paid for property
transferred or services provided in an uncontrolled transaction + the differential amount business profile of the assessee enterprise and each of the associated enterprise
from the price of the international transaction+ adjustment = arms length price operating in Bangladesh including the line of business, industry dynamics, and market
and economic environment
(b) Resale price method: The resold price to an independent enterprise - comparable
normal gross margin+ adjustment =the adjusted price =arms length price brief description of the functions performed, risks assumed and assets employed
or to be employed by the assessee and by the associated enterprise involved in the
(c) Cost plus method: Direct and indirect costs + comparable profit mark-up + adjustment
international transaction
=arms length price
financial statements of the assessee
(d) Profit split method: the combined profit arising from international transaction or
transactions and divisible among the associated enterprises based on the relative information on economic and market analyses, forecasts, budgets or any other
contribution of each associated enterprise to that profit = arms length price. financial estimates.
66. Factors to be considered in judging comparability [Rule # 71] details of all transactions with the associated enterprises
The characteristics, nature, extent, forms of property, services or intangible properties contracts, terms and agreements of the transactions with associated enterprise; etc.
involved in the transaction
69. Additional powers of enquiry and production of documents [section # 116 (1)]
The functions performed, the risks assumed and the assets employed
Directors-General of Inspection (DGI), the Commissioner, the Director General (DG), Central
The contractual terms Intelligence Cell (CIC) and the Inspecting Joint Commissioner of Taxes (IJCT) can make an
Economic circumstances including geographic location, the size and level of markets; enquiry on any assessee or above assessee or related any person and ask for documents
the extent of competition in the market, the availability of substitute goods and including electronic copy along with authority to ask them to appear before authority for
services, the purchasing powers of consumers, government orders and policies and providing information.
the timing of the transaction
70. Power of giving order for not removing property [section # 116 A]
Any other factors that have material effect on the international transaction and
uncontrolled transaction. In the course of performing functions under this Ordinance, the Director General, Central

Intelligence Cell or the Commissioner has definite information in his hands that any person
has concealed the particulars of income or investment, he may, by order in writing- require any
person who is in immediate possession or control of any money, bullion, jewellery, financial
instrument, financial asset, valuable article or any other property not to remove, part with,
or otherwise deal with it without obtaining previous permission of the concerned authority
passing such order:
Every such order shall cease to have effect after the expiry of a period of one year
from the date of the order made.
The income tax authority may extend such period or periods with the approval of the
Board. Provided that the total period of extension shall in no case exceed one year.
In computing the period if any, for which the order has been stayed by any court, shall
be excluded.
71. Avoidance of Double Taxation [Section 144]
The Government of Bangladesh may enter into an agreement with the Government of other
countries for the avoidance of double taxation and prevention of fiscal evasion with respect to
taxes on income leviable under the Ordinance and also under corresponding law of the other
country. Under the agreement, each dominion determines the total income of an assessee in
the ordinary way under its own laws but in respect of the source of income or categories of
transactions, as specified in the agreement, it is entitled to retain tax on such portion of the
income there from as is calculated according to the percentage as embodied in the agreement.
At present, Government of Bangladesh has entered into agreement for the avoidance of
double taxation with the following 28 countries:
Belgium India Norway Singapore Thailand

Canada Indonesia Oman South Korea Turkey
China Italy Pakistan Sri Lanka UK
Denmark Japan Philippines Sweden USA
France Malaysia Poland Switzerland Vietnam
Germany Netherlands Romania
72. Relief in respect of Foreign Income [Section 145]
Where there is no reciprocal arrangement for avoidance of double taxation, relief is available
in respect of doubly taxed income. If any person who is resident in Bangladesh during any
year can prove to the satisfaction of the Deputy Commissioner of Taxes that he paid income
tax in respect of any income arising outside Bangladesh, he shall be entitled to deduction
from Bangladesh income tax payable by him of a sum equal to the tax calculated on the
double taxed income at the Bangladesh rate of tax or at the rate of tax of the foreign country,
whichever is the lower.

Value Added Tax Value Added Tax
Value Added Tax
73. Who will deduct VAT?
Following persons are responsible to deduct VAT at source, such as:
Govt. organization;
Semi-govt. organization;
Autonomous organization;
NGO;
Bank;
Insurance;
Financial Institutions;
Limited company; and
Educational Institutions.
74. Where to deposit the deducted VAT?
Deducted VAT amount shall have to be deposited to govt. exchequer with following area code,
such as:
Commissionerate Areas Treasury Challan Financial Code

Large Tax-payer Unit (LTU) 1/1145/0010/0311
Dhaka (North) 1/1133/0015/0311
Dhaka (South) 1/1133/0010/0311
Chittagong 1/1133/0025/0311
Sylhet 1/1133/0018/0311
Rajshahi 1/1133/0020/0311
Jessore 1/1133/0005/0311
Khulna 1/1133/0001/0311
75. Scope of VAT and its specified rates
Applicable VAT rates on various services, and areas where VAT Deduction at Sources (VDS) are
applicable shown as per following table.
Continued
Service Service Rate of VAT (%) Service Service Rate of VAT (%)
Head # VDS * Applicable Head # VDS * Applicable
Code # Provider 2013-2014 Code # Provider 2013-2014
S 001 S 001.10 Hotels including Club 15 S 012 S 012.10 Telephone Service 15
S 001.20 Restaurant including Provider
Club: S 012.11 Tele-printer Service 15
a) Restaurant with Air 15 Provider
Condition S 012.12 Telex Service Provider 15
b) Restaurant without 6 S 012.13 Fax Service Provider 15
Air Condition S 012.14 Internet Service 15
S 002 S 002.00 Decorators and Caterers 15 VDS Applicable Provider
S 003 S 003.10 Motor Garage & 4.5 VDS Applicable S 012.20 SIM Card Distributors 15
Workshop S 013 S 013.00 Automated Laundry 15
S 003.20 Dockyard 4.5 VDS Applicable
S 014 S 014.00 Indenting Service 15 VDS Applicable
S 004 S 004.00 Construction Works / 5.5 VDS Applicable
S 015 S 015.10 Freight Forwarders 15
Firms (Builders)
S 015.20 Clearing and Forwarding 15
S 005 S 005.10 Warehouse 15
Agent
S 005.20 Port for import or 15
S 016 S 016.00 Travel Agency 15
export
S 006 S 006.00 Cold Storage 15 S 017 S 017.00 Community Centre 15
S 007 S 007.00 Advertisement 15 VDS Applicable
S 018 S 018.00 Film Studio 15
Organizations
S 019 S 019.00 Photo Grapher 4.5
S 008 S 008.10 Printing Press 15 VDS Applicable
S 020 S 020.00 Survey Sangstha 15 VDS Applicable
S 008.20 Binding Organizations 15
S 021 S 021.00 Plants or Capital 15 VDS Applicable
S 009 S 009.00 Auction 15 VDS Applicable
Machineries Rent
S 010 S 010.10 Land Development 1.5 VDS Applicable Provider
Organization
S 022 S 022.00 Sweet Shop 15
S 010.20 Building Construction 1.5 VDS Applicable
Organization S 023 S 023.10 Cinema Hall or Film 15
Distributor
S 011 S 011.10 Video Cassette Shop 15
S 023.20 Film Producer 15
S 011.20 Video Games Shop 15
S 024 S 024.00 Sales Centre of Furniture:
S 011.30 Video, Audio Recording 15
Shop At the time of production 6 VDS Applicable
S 011.40 Video and Audio CD Rent 15 At the time of marketing 4 VDS Applicable
Provider Shop subject to treasury
challan for 6% at
production stage
Continued Continued
S 025 S 025.00 WASA 15 S 040 S 040.00 Security Service 15 VDS Applicable
S 026 S 026.00 Goldsmith, Silversmith 2 Provider
and Gold & Silver Trader S 042 S 042.00 Automated Saw-machine 15
S 027 S 027.00 Insurance Company 15 S 044 S 044.00 Specialized Doctors 15
S 045 S 045.00 Legal Advisors 15 VDS Applicable
S 028 S 028.00 Courier & Express Mail 15 VDS Applicable
S 046 S 046.00 Health Club and Fitness 15
Service
Centre
S 029 S 029.10 Medical Centre 15 S 047 S 047.00 Sports Organizer 15
S 029.20 Dental Clinic 15 S 048 S 048.00 Transport Contractor:
S 029.30 Pathological Laboratory 15 For carrying petrol and 2.25 VDS Applicable
related goods
S 030 S 030.00 Beauty Parlor 15
Others goods 4.5 VDS Applicable
S 031 S 031.00 Repairing or Servicing 15 VDS Applicable S 049 S 049.00 Transport Fare or Rent- 15 VDS Applicable
of Taxable Goods a-car
S 032 S 032.00 Consultancy firm and 15 VDS Applicable S 050 S 050.10 Architect, Interior 15 VDS Applicable
Supervisory firm Designer or Interior
Decorator
S 033 S 033.00 Lessee 15 VDS Applicable
S 050.20 Graphics Designer 15 VDS Applicable
S 034 S 034.00 Audit and Accounting Firm 15 VDS Applicable S 051 S 051.00 Engineering firms 15 VDS Applicable
S 035 S 035.00 Shipping Agent 15 S 052 S 052.00 Sound and Lighting 15 VDS Applicable
S 036 S 036.10 Air-Conditioned Bus 10 Instruments Rent
Service Providers
S 036.20 Air-Conditioned Launch 10 S 053 S 053.00 Present at Board 15 VDS Applicable
Service Meeting
S 036.30 Air-Conditioned Railway 10 S 054 S 054.00 Advertisement with 15 VDS Applicable
Service Satellite Channel
S 037 S 037.00 Procurement Provider 4 VDS Applicable S 055 S 055.00 Land Sellers other than 15
Land Developers
S 038 S 038.00 Organizer of Cultural 15
Program with Foreign S 056 S 056.00 Banking and non- 15
Performers banking service provider
S 039 S 039.10 Satellite Cable Operators 15 S 057 S 057.00 Electricity Supplier 5
S 039.20 Satellite Channel 15 S 058 S 058.00 Chartered Airplane 15 VDS Applicable
Distributors or Helicopter Rent
Providers
Continued Continued
S 059 S 059.00 Glass Sheet 15 S 075 S 075.00 Stock or Securities 15
Manufacturer Broker
S 060 S 060.00 Buyer of Auction Goods 4 VDS Applicable
S 061 S 061.00 Credit Card Supplying 15 S 076 S 076.00 Social and Sports 15
organization related Club
S 062 S 062.00 Money Changer 15 S 077 S 077.00 Tour Operator 15
S 063 S 063.00 Tailoring Shop 15
S 078 S 078.00 Sales Centre of RMG of 5
S 064 S 064.10 Amusement and Theme 15
Own Brand
Park
S 099 S 099.00 Any services not 15
S 064.20 Picnic Spot and 15
specified under SRO #
Shooting spot
175-Ain/2011/598-Mushak
S 065 S 065.00 House, Floor & 15 VDS Applicable dated 09 June 2011,
Space Cleaning Second Schedule and
and Maintenance section # 14 of VAT Act.
organization 1991 will be taxed under
S 066 S 066.00 Lottery ticket seller 15 VDS Applicable this code
S 067 S 067.00 Immigration Advisor 4.5 S 099.10 Information Technology 4.5 VDS Applicable
Enabled Services
S 068 S 068.00 Coaching Centre 15
S 099.20 Other services 15 VDS Applicable
S 069 S 069.00 English Medium School 4.5
S 099.30 Sponsorship Services 7.5 VDS Applicable
S 070 S 070.10 Private University 15
S 099.40 Meditation Services 7.5
S 070.20 Medical and Engineering 15 Section 3 5(2) of SRO # Advance Trade VAT 4
College 242-Ain/2012/659-Mushak
S 071 S 071.00 Event Organizer 15 VDS Applicable dated 28 June 2012
S 072 S 072.00 Human Resource 15 VDS Applicable
Providers
* VDS denotes VAT deduction at source.
S 073 S 073.00 Human Resource 15
Exporters
S 074 S 074.00 Rent of Office Space 9
or Building used for
Commercial Purpose **
** VAT is exempted on rent of office space upto 300 sft. and also on the rent for residential
purposes (SRO # 08 -Aain/2011/584-Mushak, Gezzette dated 10-01-2011)
Continued

Value Added Tax Gift Tax

Gift Tax Gift Tax
76. Gift Tax
The gift tax is leviable on gift made in any financial year on and from the 1st day of July 1990
at the prescribed in the schedule [u/s-3]. Gift means the transfer by one person to another of
any existing immovable or moveable property made voluntarily and without consideration of
any money or moneys worth Sec 2 (d), The Gift Tax Act 1990;
The value of property under gift other than cash shall be the value which, in the opinion of the
Deputy Commissioner of Taxes, it would fetch if sold in the open market on the date of gift.
When a property is not saleable in the open market and its such value cannot be determined,
its value will be determined according to the rules prescribed for the purpose. Methods of
valuation of gift have been provided in the section 5 of the Gift Tax Act 1990.
77. Exemption from Gift Tax [Section 4]
Gift tax shall not be charged under the Act in respect of the following gifts made by any
person:
1) of property situated outside Bangladesh;
2) to the Government or any local authority;
3) to the following funds or institutions, for charitable purpose:
(i) any University established under the law in force in Bangladesh or any
educational institution including polytechnic institute, recognized by the
Education Board or recognized or run by the Government;
(ii) any hospital recognized or run by the Government or any local authority or
any hospital aided by the Government or any Local Authority;
(iii) any flood or disaster management fund established or approved by the

Government;
(iv) such institutions or funds for religious or charitable purposes, not being a
private religious institution or fund which does not ensure for the benefit of
the public, as are established in Bangladesh and approved by the Government
for such purposes or to any institution established for religious or charitable
purposes and registered under any law for the time being in force, upto 20% of
the total income determined for the concerned year or Tk. 100,000 whichever
is less;
4) to dependent relative upto Tk. 20,000 on the occasion of his/her marriage;
5) by way of payment of policy of insurance or annuity for any person (other than wife/
spouse) dependent upon him for support and maintenance upto Tk. 20,000;
6) under a will;

Gift Tax Gift Tax
7) under contemplation of death;
8) to sons, daughters, father, mother, his or her spouse, own brothers and sisters;
In addition to the above exemptions, gifts made in any financial year up to value of Tk.
20,000 are exempt from gift tax. The Government may by notification exempt any class
of gift or any class of person from gift tax.
78. Provisions of the Gift Act shall NOT apply to following gifts made by [Section 20]
1) a body corporate established or constituted by or under any law
2) any institution or fund, income whereof is exempt from income tax under paragraph 1
and 2 of Part A of the Sixth Schedule of the Income Tax Ordinance 1984;
79. Return of Gift Tax [Section 7]
Every person who had made taxable gift during any financial year of an amount as to render
him liable to gift tax under the gift tax act shall before the fifteenth day of September of the
corresponding assessment year furnish a return to the Deputy Commissioner of Taxes in the
prescribed form and in the prescribed manner. Tax on the basis of the return is payable on or
before the date on which such return is furnished.
80. Rates of Gift Tax [Section 3]
Particulars Percentage
(Slab Amount of Taxable Gifts) Rate (%)
On the first Tk. 500,000 of the value of all taxable gifts 5
On the next Tk. 1,000,000 of the value of all taxable gifts 10
On the next Tk. 2,000,000 of the value of all taxable gifts 15
On the balance of the value of all taxable gifts 20
Gift Tax Gift Tax

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Bangladesh Tax Handbook 2013-2014 1

8. Special tax treatment in respect of investment in residential building and 10

Various Tax Incentives allowed as per Tax Laws

1. Tax incentives for Expatriate 23

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2. Personal Tax Rate Structure

Financial Year 2012-2013 Financial Year 2011-2012

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Enhancement of Annual Turnover amount for turnover tax: Turnover tax @ 3% if

Areas of withholding VAT extended by the following:

Sl Annual Maximum Minimum pay-

Declaration of Taxable Goods by NBR--[SRO No.176-AIN/2013/680-Mushak, dated 06

Activity Code Activity Name

CO 17.28 Sweet & Sweet related goods

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2. Tax Incentives on Jute Industry, RMG & Textile Industry

Reduced rate of tax @ 10% of companies engaged in ready-made garments industries on

3. Tax Incentives on Fisheries, Poultry, Dairy Farming etc.

4. Tax Incentives on Real Estate and Land development Industry

According to Section 38, Sixth Schedule, Part A

5. Tax Incentives on Information & Technological Industry

According to serial number 33, Sixth Schedule, Part A

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SRO # 417-L/76 dated 29 November 1976

8. Incentive for investment in residential building and apartment. [Sec: 19BBBBB]

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Accounting Period/Year Income Year Assessment Year

h. Basis of Residence [Section: 2(55)]:

i. Individual: An individual will be Resident: - if he/she stays in Bangladesh for a

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For assessee Without TIN having deposit above 15

40 53 GG Payment of fees / remuneration to surveyor of 15 Non resident Bangladeshi Rate applicable

(Return under section 75A) Payment

27. Transfer of 53M Taxes Zone-15, Dhaka 1-1141-0110-0111 1-1141-0110-0101 1-1141-0110-1876

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Belgium India Norway Singapore Thailand

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73. Who will deduct VAT?

Following persons are responsible to deduct VAT at source, such as:

Limited company; and