Income tax comparison between Bangladesh and Pakistan

1. WELCOME TO OUR
PRESENTATION
OUR TOPIC:
DISCUSS ABOUT TAX STRUCTURE OF
BANGLADESH AND PAKISTAN.

2.  Md. Nazmul Hasan Khan -1310411
 Asif Ahmed-1310493
 Jitu Saha-1231017
 Junait Husain Rahul-1310911
 Md. Dilwar Hussain-1310239
WE ARE

3. TAX STRUCTURE IN BANGLADESH
oIncome from salary
oIncome from Interest and
Securities
oIncome From house property
oIncome from agriculture
oIncome under Capital Gain
oIncome from business and
profession
oIncome from other source

4. Name of source Assessment year
2016-2017
Basic salary Full taxable
Dearness Allowance Fully taxable
Annuity Fully taxable
Festival bonus Fully taxable
Employers contribution to recognized
provident fund
Fully taxable
Interest on recognized provident fund Excepted: Lower of interest @ 14.5% or 1/3
of basic salary
Medical allowance Exempted: Tk 120000 or 10 % of basic salary
whichever is lower
House rent allowance Exempted: Lower of 50% basic salary or tk
300,000 annually
Rent free accommodation The rental value or 25% of basic slary
whichever is lower
Conveyance allowance Exempted: Up to 30,000
INCOME FROM SALARY

5. Broad categories Sub categories Basis of Chargeability for
Assessment Year 2016-17
Government securities Tax-exempted government
securities
•No TDS
•No Admissible Expanse
•Fully Exempted
Taxable government securities •5% TDS
•Grossing up is required if net
interest amount is given
•Admissible expanses are to be
deducted
•Fully taxable
Commercial securities Debentures •5% TDS
•Grossing up is required if net
interest amount is given
•Admissible expanses are to be
deducted
•Fully taxable
Zero coupon Bond •No TDS
•No Admissible Expanse
•Fully Exempted

6. Fully let out house property.
Partly let out house property.
Fully occupied let out house property by the
owner.
Admissible Expanse of House Property:
Land development.
Interest on mortgage loan.
Annual tax.
Vacancy allowance.

7. AL BOP
Income from Tea garden 60% 40%
Income from Rubber garden 60% 40%
Income from Tobacco/Sugar and other similar
Products industry:
Further processing is done by the assesses -
60% 40%
No further processing and sole to others
-
100% 0%
Description Assessment Year 2016-17
•Fully Agriculture Income
•Partly Agriculture Income
Income from Agriculture

8. •Income from sale of palm juice and date juice
•Income from land leased for agricultural purpose
•Income from any system of sharing of crop generally known
as adhi, barga, or bhag
•Income from ferry ghat, mooring terminal and fishing
•Income from salt production by flooding the land with sea
water and then extracting salt therefore
Other agricultural income

9. NON-AGRICULTURE INCOME
Description Assessment Year:2016-17
On first BDT 10 lakh
03%
On next BDT 20 lakh 10%
On the balance
amount
15%

10. INCOME FROM BUSINESS AND PROFESSION
Description Assessment Year: 2016-2017
Buildings (General) 10%
Factory buildings 20%
Furniture & fittings 10%
Office equipment 10%
Machinery & plant (General) 20%
Ocean going ships (New) 12%

11. TAX EXEMPTED CAPITAL GAINS
 The transfers of capital asset used for the
purpose of business
 The transfer of government securities
 The transfer of capital being building or
land to a new company
 The transfer of Securities approved by SEC
& traded in Stock Exchanges in some
specific cases

12. INCOME FROM OTHER SOURCE
Description Assessment year:2016-17
Dividend from mutual fund 5%
Income by winning lottery , gambling 20%
Interest on saving certificate(3-5
years
5%
Commission/fee 5%

13. Sources of income
1.Salaries
2.Interest on securities
3.Income from property
4.Agricultural income
5.Income from business or professions
6.Capital gain
TAX STRUCTURE (TAX SYSTEM) IN PAKISTAN

14.  Under the income tax slabs 2016-17 salaried person finance
Act 2016 when the income of an individual chargeable under
head “salary” exceeds 50% of his taxable income.
 Capital Gain:
 Capital Gain tax rate in Pakistan is 17.50%
 Tax on Companies:
 Corporate/company tax rate 32%
 Banking company tax rate 35%
 Small company tax rate 25%
SALARY TAX:

15.  Agricultural income:
 The government has proposed only Rs 2.3 billion
agriculture income tax in the provincial budget 2015-16
though the agriculture sector contributes 21 percent to
GDP and provides employment to 45 percent of the
production. It is about 4.6 percent
 Inter-corporate dividend Tax:
 Tax on the dividends received by a public company from
a Pakistan company is payable at the rate of 5% and at
the rate of 15% in case dividends are received by a
foreign company. Inter-corporate dividends declared or
distributed by power generation companies is subject to
reduced rate of tax 7.5%.
INCOME FROM PROPERTY:

16.  Treatment of Dividend income:
Dividend income received as below enjoys tax exemption,
provided it does not exceed Rs. 10,000/-.
 Sales Tax:
Sales Tax or GST (Goods and services Tax) is levied at various
stages of economic activity at the rate of 16 percent on: