Finance Act 2023

Presented by
Md Shafiul Azam ACA
Cell:01777703398
date:7.7.2023
Implementation of ITA 2023
❖ Tax rates for 1 st July 2023 will be applicable retrospectiv ely for the
income year 2022-2023 i.e Assessement Year 2023-2024 [Chapter 3 (8)
(1 and 4)]
❖ Lottery income will be determined following 7th Schedule of New ITA
2023
❖ School , college, Univ ersities will pay additional 5% tax if these don’t
hav e sufficient arrangement for physically challenged people.
❖ Rebate- lower of 5% tax or 75% of salary paid to disabled persons/ Third
genders if any organization employs more than 25 handicapped
persons/Third genders as employees or minimum 10% of total number of
employees
❖ 5%/10% Rebate on income Small Cottage industry remains same if
production exceeds 15% to 25% or more than 25%
Tax rates for individual (Men) , HUF and firms have updated as
follows:

Total annual Tax Rate

income Remarks
First Taka 350,000 Nil Non taxable limits
has been raised
by 14% tax burden
reduced.
Next Taka 100,000 5%
Next Taka 300,000 10%
Next Taka 400,000 15%
Next Taka 500,000 20%
Balance amount 25%
Non taxable limits for others-
Nature of Taxpayer Non Taxable limits Remarks

Women and senior citizens aged 65 Taka 400,000

years or above
Third gender Taka 475,000

Physically challenged persons Taka 475,000

(mental/Autistic /intellectual/ dumb or
deaf etc.
Gazetted war-wounded freedom Taka 500,000
fighters
Parents or Legal Custodians of Non Taxable limit above Father or mother any one
Physically challenged person +Tk.50,000 will avail
Charge of surcharge Section 167 of ITA 2023
Total net worth
Rate of Surcharge
Up to Taka 4 Crore 0%

Ov er Taka 4 Crore to 10%

Taka 10 Crore or owner Village house
of more than 1 motor
car or owner of house property comes
property of more than
8,000 sft size under surcharge
Over Taka 10 20%
crore to 20 Crore

Over Taka 20 30%

crore to 50 Crore
Over Taka 50 35%
crore
Cigarette and 2.5% of Net Exmple: Paripatra
Tobacco Business Income before tax 2017-18
** Motor vehicle (with
Jeep Micro) -excludes Bus
Minibus, Coaster, Truck
lorry, Prime mover , Pick up
Van, Auto rickshaw, Motor
Cycle.
Minimum Tax (unchanged)
Location
Within Dhaka North City Taka 5,000
corporation, Dhaka South City Withdrawn of
Corporation and Chattogram City
Corporation proposed tk.2000
even having ETIN
Any other City Corporation Taka 4,000

Other than City Corporation area Taka 3,000

Environmental Surcharge( for all kinds of Assessee)
Engine Rate of ▪ Remarks
capacity of Surcharge for
motor car* each car
(Taka)
Up to 1500cc or 75kw Taka 25,000
▪ I n all cases one *Motor v ehicle-
car is exempted excludes Bus Minibus,
w hich has the Coaster, Truck lorry,
low est capacity. Prime mov er , Pick
Surcharge will up Van, Auto
charged on more rickshaw , Motor
than 1 car from Cycle.
minimum to
maximum
Exceeding 1500cc or 75kw Taka 50,000
▪ BRTA will collect
but not 2000cc or 100 kw
Arrear surcharge if
any and Current
year’s surcharge
before
Registration,
renewal and
Fitness stage
Exceeding 2000cc or 100 Taka 75,000
kw but not 2500cc or 125
▪ DCT may also
kw giv e notice
during Return
Process (S.181)
Exceeding 2500cc or 125 Taka 150,000
kw but not 3000cc or 150
kw
Exceeding 3000cc or 150 Taka 200,000
kw but not 3500cc or 175
kw
Exceeding 3500cc or 175 Taka 350,000
kw
 Tax Rate Remarks
Publicly traded companies) listed more than 10% of 20% All income and receipts,
their paid-up capital through IPO. and all expenses and
investments over Taka 5
lac for a single transaction
Corporate Tax and total Taka 36 lac in a
year shall be made
through banking channel;
otherwise 22.50%

Publicly traded companies) listed below 10% of 22.50% All income and receipts,
their paid-up capital through IPO. and all expenses and
invest ments over Taka 5
lac for a single
t ransaction and t otal
Taka 36 lac in a year
shall be made t hrough
banking channel;
ot herwise 25%

One person Company 22.50% All income and receipts,

and all expenses and
invest ments over Taka 5
lac for a single
t ransaction and t otal
Taka 36 lac in a year
shall be made t hrough
banking channel;
ot herwise 25%

Ev ery company not publicly traded 27.50% All income and

receipts, and all
Banks, insurance and other
financial institutions (except
merchant banks)
if publicly listed-
If not Publicly listed

37.50%

40%
merchant banks 37.50%

Tobacco Company and

I ndiv idual all
45% (Additional 2%
Surcharge)
Mobile phone operator
companies
45%

Mobile phone operator 40% 10% Rebate in the

companies that conv ert
year of transfer if at
themselv es into a publicly
traded company by transfer of least 20% share
at least 10% shares through offloaded
stock exchanges, of w hich Through IPO
maximum 5% may be through
Pre-I nitial Public Offering
Placement
Non resident Assessee other
than Bangladeshi non resident
(not being a company or AOP
Trust, Fund, AOP and other
taxable entities
30%
27.50% Max.36 Lac taka in cash
transaction and Tk.5 lac
in single Transaction. If
not complied Tax Rate is
30%

Cooperativ e Society 15%

(registered under
Cooperativ e Society Act
2001)
Priv ate Univ ersities, Pv t. 15%
Medical College, Pv t Dental
College, or Pv t. Engineering
College