|
|
 |
| Tax Structure in Bangladesh |
|
| A. Individual Tax: |
| Individual Tax Structure |
| Income Year 2005-2006 (Assessment Year 2006-2007) |
| Income Slabs |
Tax Rate |
| On the first Tk 1,20,000 of total income |
Nil |
| On the next Tk 2,50,000 of total income |
10% |
| On the next Tk 3,00,000 of total income |
15% |
| On the next Tk 3,50,000 of total income |
20% |
| On the balance of total income |
25% |
| Non-Resident assessee |
25% |
| Minimum Individual Tax |
Tk 1,800 |
| Minimum Tax: Sponsor or shareholder director of a company |
Tk. 3,600 |
| Government Authority: National Board of Revenue |
|
|
| B. Corporate Tax: |
| Corporate Tax |
| Company |
New Rate AY 2006-07 |
| Publicly Traded Companies (other than Banks, Insurance & Financial Institutions): |
- |
| Normal Tax Rate (paying Dividend 10% or more) |
30% |
| Additional Tax if the declared dividend/bonus share is not declared or distributed at least 15% within 6 months of the following income year |
5% on undistributed profit |
| Companies declaring dividend less than 10% |
40% |
| Rebate @ 10% on applicable tax in case where dividend is more than 20% |
10% |
| Banks, Insurances and Financial Institutions: |
- |
| Corporate Tax |
45% |
| Excess Profit Tax (additional)-for banks only |
15% (on excess profit) |
| Companies Not Publicly Traded |
40% |
| Textile Industries SRO 219/IT/2004, 13th July 2004 |
15% |
| Jute Industries SRO 218/IT/2004, 13th July 2004 |
15% |
| Industries set up between 1st July 2002 and 30th June 2005 and not applying for Tax Holiday. (This rate will continue for 5 years) SRO 177/IT/2002, 3rd July 2002 |
20% |
| Government Authority: National Board of Revenue |
|
| *** Income tax is levied on all companies and individuals for the previous year and payable for the year of assessment of fiscal year (July to June). If a company adopts an accounting period different from the fiscal year, the business period is a 12 month accounting period proceeding the year of assessment. Taxable income is calculated after adjusting for incurred expenses in the production of income. |
|
|
| C. Value Added Tax |
| Corporate Tax |
| Deduction of VAT at Source: The authority for deducting VAT at source has been given to the Government, Semi-Government, Autonomous Organizations, Non-Government Organization (NGOs), Bank, Insurance or Limited Company. The services on which deduction at source applicable are listed below: |
| Head # |
Service Code # |
Service Provider |
Rate of Deduction (%) |
| S 003 |
S 003.10 |
Garage and workshop of motor car |
4.5% |
|
S 003.20 |
Dockyard |
4.5% |
| S 004 |
S 004.00 |
Construction Contactor/Sangstha |
4.5% |
| S 007 |
S 007.00 |
Advertisement Organization: Government, Semi-Government, Autonomous Body, Nationalized Bank and Insurance Sector |
4.5% |
|
|
Private Organization, Non-Government Sangstha (NGO), Private Bank & Insurance, Limited Company, Any Sangstha or Person |
9% |
|
|
Others |
15% |
| S 008 |
S 008.10 |
Printing firm/organizations |
4.5% |
| S 020 |
S 020.00 |
Survey Sangstha |
15% |
| S 032 |
S 032.00 |
Consultancy and Supervisory Firm |
4.5% |
| S 033 |
S 033.00 |
Lessee |
15% |
| S 034 |
S 034.00 |
Audit and Accounting Firm |
4.5% |
| S 037 |
S 037.00 |
Procurement Service Provider |
2.25% |
| S 048 |
S 048.00 |
Transport Contactor: |
|
|
|
For carrying Petrol and Petroleum goods |
2.25% |
|
|
Others |
4.5% |
| S 049 |
S 049.00 |
Transport rent provided |
4.5% |
| S 053 |
S 053.00 |
Participants of Board Meeting |
15% |
| S 060 |
S 060.00 |
Buyer of Auction Goods |
1.5% |
| S 065 |
S 065.00 |
House clearing and maintenance organization |
2.25% |
| S 066 |
S 066.00 |
Lottery ticket seller |
15% |
|
|
| D. Gift Tax: |
| Amount |
Rate |
| On the first Tk. 5,00,000 of the value of all taxable gifts |
5% |
| On the next Tk. 10,00,000 of the value of all taxable gifts |
10% |
| On the next Tk. 20,00,000 of the value of all taxable gifts |
15% |
| On the balance of the value of all taxable gifts |
20% |
|
|
| E. Foreign Travel Tax: |
| Foreign Travel Tax 1990 has been amended through SRO No. 209/Law/Travel Tax/2005 dated 06.07.2005, rescheduling rate of Travel Tax effective from 01.07.2005 as follows: |
| (i) |
Travel by Air: Foreign Travel tax is payable on all foreign air travel by all Bangladeshi Nationals holding Bangladeshi Passports at the rate of: |
|
(a) |
For travel to any country of the continent of North America, South America, Europe, Africa, Australia and New Zealand and any country of the Far East |
Tk. 2,500 |
|
(b) |
For SAARC countries |
Tk. 800 |
|
(c) |
For any other country |
Tk. 2,000 |
| (ii) |
Travel by Land and Sea: Foreign Travel Tax is payable on all foreign travels by land or sea by Bangladesh Nationals holding Bangladeshi Passports |
-Tk. 500 travel by land/person
-Tk. 600 travel by sea/person |
| All on and off line airlines will collect foreign travel tax through air tickets in respect of foreign travel by air |
|
|
|
|
|
