1. Changes in the Finance Act 2022
Course Code: F-206
Course Title: Business Taxation
2. Group Member List (Group 5)
Name Id
Tanjina Akter Nipa 26-013
Naimul Hasan Rafi 26-019
Faiyaz Abrar Richi 26-056
Mohammad Mohtasim Haque Bhuyian 26-081
Sadia Afroz Ishaan 26-094
Syeda Nusrat Mahi 26-110
Maliha Tabassum Meem 26-183
5. Change in personal tax
There is no particular change in personal tax in 2022-23 fiscal year.
Tax Payer Income Slabs Tax Rate
For Bangladeshi
individuals, residents,
one person business and
partnership firms
Up to BDT 300,000 -
Next BDT 100,00 5%
Next BDT 300,000 10%
Next BDT 400,000 15%
Next BDT 500,000 20%
On balance 25%
6. Change in corporate tax
Finance act 2021
20%
Publicly traded
company
Publicly limited
company 27.5%
Finance act 2022
25%
30%
7. Change in minimum tax
There is no particular change in minimum tax that a company needs to pay even if it
faces losses.
Types of Companies 2021-2022 2022-2023
1. Tobacco 1% 1%
1. Mobile phone operator 2% 2%
1. Others 0.6% 0.6%
9. Change in tax rebate on certain investments: Section 44
Amendment of section 44 (2C)(ii)
Finance act 2021 Finance act 2022
Total Investment
25% of Total Income
BDT 10,000,000
Total Investment
20% of Total Income
BDT 10,000,000
Lower is considered for the eligible amount
10. Change in tax rebate on certain investments: Section 44
Amendment of section 44 (2C)(ii)
Finance act 2021 Finance act 2022
15%
If total income
doesn’t exceed 15
lacs
If total income
exceeds 15 lacs
10%
15% In general case
If assesse fails to
comply submit
return u/s 75
7.5%
11. Mr Choudhury has a taxable income of 20 lac, and total allowable investment of 510000.
Eligible
amount
Finance act 2021
Total Investment:
510000
25% of Total Income:
500000
BDT 10,000,000
Lower
25% of Total Income:
500000
taxable income of 20 lacs>15 lacs
10%
Tax rebate Rate
Tax Rebate: 50000
12. Mr Choudhury has a taxable income of 20 lac, and total allowable investment of 510000.
Eligible
amount
Finance act 2022
Total Investment:
510000
20% of Total Income:
400000
BDT 10,000,000
Lower
20% of Total Income:
400000
General Rate
15%
Tax rebate Rate
Tax Rebate: 60000
13. Eligible
amount
Finance act 2021
Total Investment:
510000
25% of Total Income:
250000
BDT 10,000,000
Lower
25% of Total Income:
250000
taxable income of 10 lacs<15 lacs
15%
Tax rebate Rate
Tax Rebate: 37500
Mr. Choudhury has a taxable income of 10 lac, and total allowable investment of 510000.
14. Mr Choudhury has a taxable income of 10 lac, and total allowable investment of 510000.
Eligible
amount
Finance act 2022
Total Investment:
510000
20% of Total Income:
200000
BDT 10,000,000
Lower
20% of Total Income:
200000
General Rate
15%
Tax rebate Rate
Tax Rebate: 40000
15. Finance act 2022: Impact on Tax rebates
The tax rebate has increased for those who have an
income of more than 15 lac
The tax rebate has decreased for those who do not
have an income of more than 15 lac
17. Change in net wealth surcharge: Section 16A
Asset Rates (2021-22 &
2022-23)
Net asset exceeding 3 crores, but not exceeding 10 crores
Or, Ownership of 2 or more motor cars
Or, Ownership of house property having an aggregate area of 8000
square feet in a city corporation area
10%
More than 10 crores, not exceeding 20 crores 20%
More than 20 crores, not exceeding 50 crores 30%
More than 50 crores 35%
There was no particular change in net wealth surcharge income tax slab implied on
individual’s income in 2022-23 fiscal year.
18. Change in income from fish farming
There is no income tax on first 10 lacs income from fish farming as the Tax Ordinance.
On third 10 lacs the tax implied
Implacable tax rate on third 10 lacs
Finance Act 2021-22 Finance Act 2022-23
10%
15%
The tax rate decreased for the third 10 lacs income of the fisheries in 2022-23 fiscal year’s finance act
19. Tax deducted at source on account of import of goods
Section 53
Particulars Tax rate in 2021-22 Tax rate in 2022-23
Gold Imports 5% 0%
Wheel Chair 5% 0%
Changes in TDS: Section 53
21. Tax deducted at source on account of Supply of goods
Section 52
Particulars Tax rate in 2021-
22
Tax rate in 2022-
23
Supply of books to institutions or persons other than the
Government or any institution of the Government
7% 3%
Supply of goods to traders 7% 5%
Supply of raw materials to manufacturer 7% 4%
Changes in TDS: Section 52
22. Tax deducted at source on account of Services
Section 52
Particulars Tax rate in 2021-22 Tax rate in 2022-23
Bandwidth payments to non-residents in building
Digital Bangladesh
20% 10%
Other payments to non-residents 30% 20%
Any other payment 30% 20%
Changes in TDS: Section 52
23. Tax deducted at source on interest on savings deposits and
fixed deposits: Section 53F
Investment by
‘Company’
10% 20%
Changes in TDS: Section 53F
25. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 04; Subsection 02)
VAT submission has been mandated to:
Existing:
• Importers, exporters, and manufacturers of goods and services that are subject
to Supplementary Duty in Bangladesh.
• People who supply goods or services or both under any contract, agreement,
or tender.
• People engaged in the Import-Export business of any kind.
• People appointed as a VAT agent.
Addition:
• Any branch or liaison or project office of foreign company established in the
land of Bangladesh.
26. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 46; Subsection 01 ক-{অ})
Existing Revision
VAT exemption for inter-company cash purchase:
> 1 Lac
Subject to VAT if purchases
exceed 1 lac and no banking
channel is involved
Unlimited
Intercompany purchases under
a common ownership are VAT
exempted
27. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 50; Subsection 02):
Existing Revision
Withheld VAT can be adjusted with VAT liability:
1 Year
Within 1 tax period
3 Years
Within 3 tax period
28. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 82; Subsection 01)
Existing Revision
Credit Rating Agency’s liability to assist VAT officers:
Not Liable Liable
29. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 85; Subsection 01)
Existing Revision
Penalty if assessee fails to submit VAT return:
10,000 BDT
If VAT return not submitted
within due time
5000 BDT
If VAT return not submitted
within due time
30. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 85; Subsection 01)
Existing Revision
Penalty if assessee willingly avoids to submit tax return:
200%
of the avoided tax amount
50 or 100%
of the avoided tax amount
32. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 85; Subsection 04)
Existing Revision
VAT returns during the dormant period of the business:
Penalty
For not filing VAT returns
No Penalty
Relieved from penalty if the
business notifies the authority
appropriately
33. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (Section 95; Subsection 05)
Existing Revision
Discontinuation of utilities to recover tax:
Not permitted Permitted
VAT authorities can ask the
providers to cut off utilities
34. Changes in VAT (Finance Act, 2022)
Certain Other Changes:
Existing Revision
VDS deposit to govt. treasury within:
15 Days
After deduction
7 Days
After deduction
35. Changes in VAT (Finance Act, 2022)
Certain Other Changes:
Existing Revision
Vat reduction for jewelry traders:
10% 5%
36. Changes in VAT (Finance Act, 2022)
Certain Other Changes:
Existing Revision
Increased duty on bank balance above BDT 5 crore:
40,000 BDT
Per account
50,000 BDT
Per account
38. Changes in VAT (Finance Act, 2022)
Certain Other Changes:
Existing Revision
Vat on locally manufactured mobile phones:
0% 5%
39. Changes in VAT (Finance Act, 2022)
Certain Other Changes:
Existing Revision
VAT on AC restaurants:
10% 5%
Except 3-star and above graded hotels
and restaurants having residential
facilities
40. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (2nd Schedule)
SD on certain mentionable goods and services:
• Meat and edible offal of bovine animals, sheeps or goats = 20%
• Fish, fresh or chilled, excluding fish fillets NR and other fish meat = 20%
• Frozen Prawn = 20%
• Powdered Milk = 20%
• Butter and Certain Milk Products = 20%
• Cheese and Curd = 20%
• Fresh or Chilled Vegetables = 20%
• Fresh or Dried Fruits (mango, grape, orange, apples, etc.) = 20%
• Coffee = 20%
• Green Tea = 20%
• Sugar Confectionery = 45%
• Finished Chocolates = 45%
• Potato Chips = 45%
• Malted Bears = 250%
41. Changes in VAT (Finance Act, 2022)
Amendment of Act 47 of 2012 (2nd Schedule)
SD on certain mentionable goods and services:
• Cigarettes = 350%
• Perfumes = 30%
• Automobile Tires = 20%
• Woven Fabrics = 20%
• Razors = 20%
• Up to 1600cc Cars = 45%
• Up to 1800cc Hybrid Cars = 20%
