Regular Tax Requirements for Companies and NGOs in Bangladesh

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Compiled By: Masum Gazi
Regular requirements of Income Tax required to comply by a company/Branch
office/Liaison office/Bank/Non-Banking Financial Institutions/Insurance
company/NGOs etc.
In light of Finance Act, 2018
Senior-Assistant Manager
ACNABIN Chartered Accountants
LinkedIn: Masum Gazi
Contact: +8801935131132
1. Deduction of Tax from different source of Income:
➢ As per provision of Section 48 of the ITO 1984, tax shall be deducted at source from
sources of income mentioned in section 49.
➢ According to section 49 “Tax payable under this Ordinance shall be deducted or
collected at source in respect of the following income, namely: - (Rate of deduction is
attached in Schedule-1)
✓ income classifiable under the head “Salaries”;
✓ income from discount on the real value of Bangladesh Bank bills;
✓ income derived on account of supply of goods, execution of contracts or services
rendered;
✓ income derived by the importers on account of import of goods;
✓ income derived on account of indenting commission;
✓ income derived on account of winnings from lottery or crossword puzzles, as
referred to in section 19 (13);
✓ any income chargeable under this Ordinance which is paid or payable to a non-
resident;
✓ income classifiable under the head “Income from house property;
✓ income derived on account of export of manpower;
✓ income derived on account of purchase by public auction;
✓ income derived on account of acting in films;
✓ income derived on account of shipping agency commission;
✓ income derived from commission, discount or fees payable to distributors for
distribution or marketing of manufactured goods;
✓ income derived on account of interest on saving deposits, fixed deposits or term
deposits and share of profit on term deposits;
✓ income derived on account of payment from workers’ participation fund;
✓ income derived on account of insurance commission;
✓ income classifiable under the head “Capital gains”;
✓ income derived on account of fees for professional or technical services;
✓ income derived on account of manufacture of cigarettes manually without any
mechanical aid whatsoever;
✓ income derived from compensation against acquisition of property;
✓ income derived on account of interest on savings instruments;
✓ income derived on account of running of brick field;
✓ income derived on account of services rendered by the doctors;

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✓ income derived on account of commission of letter of credit;
✓ income derived on account of survey by a surveyor of general insurance company;
✓ income derived on account of commission, remuneration or charges as a foreign
buyer’s agent;
✓ income from dividends.
✓ income derived on account of rendering certain services;
✓ income derived on account of shipping business carried on both inside and outside
Bangladesh by a resident assessee.
✓ income derived on account of business of real estate and land developer;
✓ income derived by an exporter on account of export of any commodity;
✓ income derived by a member of a stock exchange on account of transaction of shares,
debentures, mutual funds, bonds or securities;
✓ income derived on account of courier business of a non-resident;
✓ income derived on account of export cash subsidy;
✓ on account of renewal of trade license;
✓ income derived on account of freight forward agency commission;
✓ income derived on account of rental power;
✓ income derived on account of interest of Post Office Savings Bank Account;
✓ income derived on account of rental value of vacant land or plant or machinery;
✓ income derived on account of advertisement;
✓ income derived by foreign technician serving in a diamond cutting industry;
✓ income derived from transfer of securities or mutual fund units by sponsor
shareholders of a company etc.;
✓ deduction of tax from residents for any income in connection with any service
provided to any foreign person;
✓ income derived on account of international gateway service in respect of phone call;
✓ collection of tax from manufacturer of soft drink;
✓ income derived from insurance policy;
✓ deduction of tax from local letter of credit (L/C);
✓ income derived from any fees, revenue sharing, etc. from cellular mobile phone
operator;
✓ income from transfer of share of any stock exchange;
✓ income from transfer of share of company listed in any stock exchange;
✓ income derived from lease of property;
✓ deduction of tax from any sum paid by real estate developer to land owner.
2. Deposit of tax deducted/collected at source within time limit:
➢ In accordance with provision of Section 57 of the Income Tax Ordinance, 1984 in
conjunction with rule 13 of the Income Tax Rules, 1984, income tax deducted/collected
at source at the time of making payment to servicer renderer/supplier has to be
deposited in the following manner:
Sl. Time of deduction or
collection
Date of payment to the credit of the
Government
1. in case of deduction or collection
made in any month from July to
May of a year
within two weeks from the end of the
month in which the deduction or
collection was made

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made in any day from the first to
the twentieth day of June of a
year
within seven days from the date in
which the deduction or collection was
made
made in any other dates of the
month of June of a year
The next following day in which the
deduction or collection was made
in the last two working days of
the month of June of a year
on the same day on which the deduction
or collection was made
➢ Where a person fails to comply accordingly, he shall be deemed to be an assessee in
default and shall be personally liable to pay-
(i) The amount of tax that has not been deducted or collected;
(ii) The amount which was required to be deducted or collected as reduced by
the amount that has been actually deducted or collected;
(iii) The amount that, after being collected and deducted, has not been paid to
the credit of the Government.
➢ In addition to the amount as aforementioned, the person shall be liable to pay an
additional amount at the rate of 2% per month on the amount so fell short (for a period
of maximum 02 years).
3. Monthly statement of Tax deduction/collection at source under rule 18 and 21:
➢ In accordance with sub-section 3 of section 58 of the Income Tax Ordinance, 1984 every
person who has deducted or collected any tax shall furnish a statement to such income
tax authority and in such manner as may be prescribed in corresponding rule 18 and 21
of the Income Tax Rules, 1984.
➢ As per sub-rule 7 of rule 18 of the Income Tax Rules, 1984 a monthly statement, in the
proforma as prescribed therein, of the tax deducted and collected by the entity (except
from salary), has to be submitted to the concerned Deputy Commissioner of Taxes of the
entity by 20th day of the following month.
➢ As per sub-rule 1 of rule 21 of the Income Tax Rules, 1984 where a deduction is made
under section 50 from the salaries of employees, a monthly statement, in the proforma
given therein, has to be submitted to the Deputy Commissioner of Taxes under whose
jurisdiction the employee is assessed by the 20thday of the following month.
4. Advance Income Tax under section 64:
➢ As per provision of section 66 of the Income Tax Ordinance, 1984 advance tax is payable
in four equal installments on the 15th day of September, December, March and June of
the financial year and an amount computed in the manner as stated in section 65 of the
Ordinance.

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➢ If any assessee estimates that the tax payable by him is likely to be less than the
amount of tax as computed under section 65, he may, after giving the DCT an estimate
of the tax payable, pay such estimated amount of advance tax.
➢ If as per the estimation, no advance tax is payable for the said quarter, the assesse need
to inform concerned income tax authority accordingly with proper information.
Noted that applying this provision may cause to rise a risk of imposition of interest
under section 73 if the tax so paid (advance tax) falls short from 75% of assessed tax, at
the rate of 10% on such shortfall.
➢ Failure to comply with sections relating to advance tax may involve penalty under
section 125 as well depending on will of the concerned Deputy Commissioner of Taxes
which is sum not exceeding the amount by which the tax actually paid by him falls short
of the amount that should have been paid.
5. Return of Withholding Tax under section 75A:
➢ As per sub-section 2 of section 75A of the Income Tax Ordinance, 1984, 1st half-yearly
return of withholding tax for the period from 01 July to 31 December is required to be
submitted within 31 January of next following and 2nd half yearly return of withholding
tax for the period from 01 January to 30 June is required to be submitted within 31 July
next following.
However, upon requesting to the concerned Deputy Commissioner of Taxes in proper
manner, the last date of submission may be extended up to fifteen days.
➢ Failure to submit the withholding income tax returns may involve penalty under section
124 of the Income Tax Ordinance 1984 which is amounting to 10% of tax imposed on
last assessed income or five thousand taka, whichever is higher.
6. Filing of Annual Salary information:
➢ Statements of salary is required to be submitted to the concerned income tax authority
under section 108 of the Income Tax Ordinance, 1984 in the format as prescribed vide
rule 23 of the Income Tax Rules, 1984 within 31 August each year.
➢ As per section 30 of ITO 1984, any payment made by way of salary to an employee for
whom the statement under section 108A was not provided shall be disallowed
➢ Failure to comply may attract penalty under section 124 of the Income Tax Ordinance,
1984 which is amounting to 10% of tax imposed on last assessed income or five
thousand taka, whichever is higher.
7. Filing of information of employee’s income tax return submission:
➢ Information regarding filing of return of employees in compliance with section 108A of
the Income Tax Ordinance, 1984 in a prescribed form vide rule 23A of the Income Tax
Rules, 1984 is to be submitted to the concerned income tax authority by 30th day of
April of each year.
➢ As per section 30 of ITO, 1984, any payment made by way of salary to an employee for
whom the statement under section 108A was not provided shall be disallowed.

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1984 which is amounting to 10% of tax imposed on last assessed income or five
thousand taka, whichever is higher.
8. Statement of dividend vide Section 110:
➢ Statements of dividend is required to be submitted to the concerned income tax
authority under section 110 of the Income Tax Ordinance, 1984 in the format as
prescribed vide rule 19 of the Income Tax Rules, 1984 within 31 August each year.
1984 amounting to five thousand taka, and in the case of a continuing default, a further
penalty of one thousand taka for every month or fraction thereof during which the
default continues.
9. Filing of statement of International Transaction:
➢ As per provision of Section 107EE of the Income Tax Ordinance, 1984, every person who
has entered into an international transaction shall furnish, along with the return of
income, a statement of international transactions in the form and manner as may be
prescribed. This return shall be submitted along with the income tax return.
➢ Where any person fails to comply with the provision of section 107EE of this Ordinance,
the Deputy Commissioner of Taxes may impose upon such person a penalty not
exceeding two per cent (2%) of the value of each international transaction entered into
by such person.
10. Report from an accountant to be furnished for Transfer pricing
➢ As per provision of Section 107F of the Income Tax Ordinance, 1984, every person who
has entered into international transactions accumulated value of which exceeds three
crore, and if the DCT requires to filing report, it is mandatory to file report from a
Chartered Accountant or a Cost Management Accountant.
➢ Where any person fails to furnish a report as required by section 107F of this Ordinance,
the Deputy Commissioner of Taxes may impose upon such person a penalty of a sum not
exceeding three lakh taka.
11. Filing of Income Tax Return:
➢ "As per provision of Section 75 of Income Tax Ordinance, 1984, person mentioned in
there are required to file Income Tax Return for every income year within the Tax Day.
➢ Vide section 75(5) of the Income Tax Ordinance, 1984 every income tax return has to be
submitted on or before Tax Day as specified in sub-section 62A of section 2. In the case
of a company, the fifteenth day of the seventh month following the end of the income
year or 15th September following the end of the income year where the said fifteenth
day falls before 15th September. However, the DCT may allow an extension of four
months (two months by himself and another two-month period with the approval of
Inspecting Joint Commissioner) vide section 75(6) of the ITO-1984."

Schedule-1
In light of F.A. 2018 In light of F.A. 2017
Salaries (section-50)
Any person responsible for making
such payment.
Deduction at the average rate
applicable to the estimated total
income of the payee under this head.
income of the payee under this
head.
Deduction from salary may be deposited
quarterly
upon prior permission of DCT.
Salaries (Government) [Sub-
section (1A) of section 50]
DDO or who making / signing a bill for
Govt Employee.
income of the payee under this head.
income of the payee under this
head.
Government Accounts Office shall issue a tax
deduction certificate in prescribed form
within the thirty first day of July following the
financial year.
2
Discount on the real value of
Bangladesh Bank Bill (Section
50A)
such payment.
Maximum rate Maximum rate
Deduction shall not be applicable on said bill,
if it is purchased by an approved
superationannuation fund or pension fund or
gratuity fund or recognized providend fund or
worker's profit perticipation fund
2(b)
Payment of remuneration to
Member of Parliament (section-
50B)
such payment.
Average of the rates applicable to the
estimated total remuneration of the
payee for that income year.
Average of the rates applicable to
the estimated total remuneration of
the payee for that income year.
3
Interest or profit on securities
(section-
51)
Any person responsible for issuing any
security or approved by govt.
5% upfront, in case of islamic
princiles, 5% of profit at the time of
payment or credit whichever is
earlier
5% upfront, in case of islamic
princiles, 5% of profit at the time of
payment or credit whichever is
earlier
Provided that this provision shall not apply
to theTreasury bond or Treasury bill
issued by the Government.
1
Withholding rate/rates of taxes
Remarks
Major sources of income subject to deduction or collection of tax at source
Sl. # Head of withholding with section Withholding authority/Remarks
6 Contact: 01935131132

Schedule-1
Where base amount----------does not
exceed taka 15 lakh-----------------------
2%
Where base amount----------does not
exceed taka 15 lakh----------------------
-2%
exceeds taka 15 lakh but does not
exceed taka 25 lakh-----3%
exceed taka 25 lakh------3%
exceed taka 1 crore----4%
exceed taka 1 crore---4%
exceeds taka 1 crore but does not
exceed taka 5 crore--5%
exceed taka 5 crore----5%
exceeds taka 10 crore---7% exceeds taka 10 crore---7%
In case of oil supplied by oil
marketing companies-
(a) Where the payment does not
exceed
taka 2 lakh-------------- Nil
(b) Where the payment exceeds taka
2 lakh--0.60%
In case of oil supplied by oil
marketing companies-
(a) Where the payment does not
exceed
taka 2 lakh-------------- Nil
(b) Where the payment exceeds
taka 2 lakh--0.60%
In case of oil supplied by dealer or
agent (excluding petrol pump
station) of oil marketing companies,
on any amount--------------1%
In case of oil supplied by dealer or
agent (excluding petrol pump
station) of oil marketing
companies, on any amount-------------
-1%
In case of supply of oil by any
company engaged in oil refinery, on
any amount- 3%
In case of supply of oil by any
company engaged in oil refinery, on
any amount- 3%
In case of company engaged in
gas transmission, on any amount-------
- 3%
gas transmission, on any amount-----
----- 3%
gas distribution, on any amount--------
3%
gas distribution, on any amount------
-- 3%
Withholding authority/Remarks
The rate of deduction from the
following classes of person shall be-
Specified person as mentioned in
section 52
4
Remarks
section 52
(a) execution of a contract, other
than a contract for providing or
rendering a service mentioned in
any other section of Chapter VII;
(b) supply of goods;
(c) manufacture, process or
conversion;
(d) printing, packaging or binding;
; (section-52, rule-16) 82C
Provided that –
Tax shall not be deducted in respect of clause
(b) supply of goods at the time of purchase of
direct materials that constitute cost of sales
or cost of goods sold of a trading company
or a manufacturing company, as the case
may be;
Where any imported goods on which tax has
been paid at source u/s 53 is supplied, tax
at source on the said supply shall be B-A,
where-
A= The amount of tax paid u/s 53;
B= The amount of tax applicable under this
section if no tax were paid u/s 53
Sl. # Head of withholding with section
7 Contact: 01935131132

Schedule-1
5
Royalties, franchise, or the fee for
using license, brand name, patent,
invention, formula, process,
method, design, pattern, know-
how, copyright, trademark, trade
name, literary or musical or artistic
composition, survey, study,
forecast, estimate, customer list or
any other intangibles [section-52A]
82C
such payment
where base amount does not exceed
taka 25 lakh--------------------------------
10%
Where base amount exceed taka 25
lakh--------------12%
where base amount does not exceed
taka 25 lakh--------------------------------
10%
Where base amount exceed taka 25
lakh--------------12%
the rate of tax shall be fifty percent (50%)
higher if the payee does not have a twelve-
digit Taxpayer’s Identification Number at the
time of making the payment.
6
Deduction from the payment of
certain services.- (section-
52AA)
section 52
Annexure-A Annexure-A
7
C&F Agency
Commission (Section 52AAA)
82C
Commissioner of Customs. 10% on commission amount 10% on commission amount
8
Manufacturer of non mechanical
Cigarettes (bidi)(section-52B-
82C
Any person responsible for selling
banderols to any manufacturer of
cigarettes.
10% of the value of banderols 10% of the value of banderols
“manufacture of cigarettes” means
manufacture of cigarettes manually without
any mechanical aid whatsoever."
9
Compensation against acquisition
of property (Section
52C) 82C
Any person responsible for payment of
such
compensation.
(a) 2% at City Corp Area, Paurashava
or Cantonment board;
(b) 1% at outside City Corp Area,
Paurashava or Cantonment board;
(a) 2% at City Corp Area,
(b) 1% at outside City Corp Area,
10
Interest on saving instruments
(section-
52D)
-82C
such payment.
5% 5%
Remarks
8 Contact: 01935131132

Schedule-1
11
Deduction at source from payment
to a beneficiary of workers’
participation fund.- (section-
52DD)
such payment.
5% 5%
12
Collection of tax from Brick
manufacturers (section-52F)
Any person responsible at the of
permission or renewal
a. tk. 45,000 for 1 section of brick
field b. tk. 70,000 for 1.5 section of
brick field
c. tk. 90,000 for 2 section of brick
field d. tk. 150,000 for automatic
machine of brick field
a. tk. 45,000 for 1 section of brick
field b. tk. 70,000 for 1.5 section of
brick field
c. tk. 90,000 for 2 section of brick
field d. tk. 150,000 for automatic
machine of brick field
"Section meaning as defined in
Seasonal Brick Field VAT Rules
2004."
13
Commission of letter of credit
(section 52I)
Any person responsible for opening
letter of
credit.
5% on commission 5% on commission
14
Collection of tax from travel Agent.-
(Section-52JJ)-82C
Any person responsible for paying on
behalf of airlines as commission or
discount or incentive bonus or any
other benefits for selling tickets or
caring cargo to a resident
I. 0.3% of total value of ticket
II. In addition to the amount
mentioned in sub-section (1), person
responsible for making such payment
shall deduct an amount equal to
(A/B) x C, where- “A” is the amount of
incentive bonus, performance bonus
or any other
benefits as mentioned in subsection
(2), “B” is the amount of commission
or discount or any other benefits as
mentioned in sub-section (1), and
“C” is the amount of source tax on
commission or discount or any other
(1).
I. 0.3% of total value of ticket
II. In addition to the amount
mentioned in sub-section (1),
person responsible for making such
payment shall deduct an amount
equal to (A/B) x C, where- “A” is the
amount of incentive bonus,
performance bonus or any other
(2), “B” is the amount of
commission or discount or any
other benefits as mentioned in sub-
section (1), and
“C” is the amount of source tax on
commission or discount or any
other benefits as mentioned in
subsection (1).
Any payment on by way of
commission or incentive bonus, any other
benefits or allowing discounts, for selling
tickets of an airline, or for carrying cargo by
air as advance tax.
*Explanation.- For the purpose of
computation of value of tickets or charge,
any payment made in respect of any
embarkation fees, travel tax, flight safety
insurance, security tax and airport tax shall
not be included in such value or charge.”|
Sl. # Head of withholding with section Withholding authority/Remarks Remarks
9 Contact: 01935131132

Schedule-1
15
Collection of tax by City
Corporation or Paurashava at the
time of renewal of trade license.-
(Sec.
52K)
Any person responsible for renewal of
trade license
(a) Tk. 500 in Dhaka North & South
City Corporation or Chittagong City
Corporation;
(b) Tk. 300 in any city corporation,
other than Dhaka and Chittagong city
corporation;
(c) Tk. 300 in any paurashava at any
district headquarter;
(d)Tk. 100 in any other paurashava.]
(a) Tk. 500 in Dhaka North & South
City Corporation or Chittagong City
Corporation;
(b) Tk. 300 in any city corporation,
other than Dhaka and Chittagong
city corporation;
(c) Tk. 300 in any paurashava at any
district headquarter;
(d)Tk. 100 in any other
paurashava.]
16
Freight forward agency
commission (section-52M)
such payment.
15% 15%
17
Collection of tax on account of
rental power.(Sec 52N)-82C
BPDB 6% 6%
18
Foreign technician serving in
diamond cutting industries
(section-52O) 82C
Employer 5% 5%
3 years from the appointment of such
foreign technician and appointment is
completed by 30th June 2010.
19
Services from convention hall,
conference centre etc. (section-
52P)
Corporation, body, authority, company,
NGO, university, medical college,
dental college, engineering college.
5% 5%
No deduction shall be made by a company
when such amount is paid directly to the
government.
20
Any income in connection with any
service provided to any foreign
person (section-52Q)
Bank/financial institution 10% 10%
No deduction for remittance from abroad
for sales of software & services of a
resident as it is exempted under paragraph
33 of Part - A of 6th Schedule
1) The respective bank, in the case of
the amount of creding to the account of
an International Gateway (IGW)
Services operator
1.5 % of total revenue received by
IGW services operator
1.5 % of total revenue received by
IGW services operator
2) IGW services operator, in the case of
the amount paid or credited to the
account of ICX, Access Network
Services (ANS) or others
7.5 % revenue paid or creidted to the
ICX, ANS and others
7.5 % revenue paid or creidted to
the ICX, ANS and others
2A) In respect of outgoing
international calls, the provider of
Interconnection Exchange (ICX)
services or Access Network Services
(ANS)
7.5% on the whole amount so paid or
credited at the time of payment or
creidit
7.5% on the whole amount so paid
or credited at the time of payment
or creidit
Sl. # Head of withholding with section
International gateway service in
respect of Phone call (section-52R) -
82C
21
Withholding authority/Remarks Remarks
10 Contact: 01935131132

Schedule-1
22
Collection of tax
from manufacturer of soft drink,
or mineral or bottled water
(section-52 S)
SPCBL or any other Nil
4% on the value which determined
for
VAT
Omitted by FA 2018
23
Deduction of tax from any payment
in excess of premium paid on life
insurance policy(section-52T)
Insurance company 5% on excess amount of premium 5% on excess amount of premium
Provided that no deduction of tax shall be
made in case of death of such policy holder.
24
Deduction from payment on
account of local L/C (section-
52U)
Bank/ Financial institution
Replaced by FA 2018
3% at the time of extending any
credit facility under a local letter of
credit or any other financing
agreement for the purpose of trading,
or of reselling after process or
conversion
1%
At the time of extending any credit
facility to a distributor under a
financing arrangement against the
invoice or
sale of goods
Nothing in this section shall limit the
applicability of section 52: payment
to contractor.
3% on the total proceeds exceeding
Taka 5 lakh
“distributor” means a person who performs
the function of supply of finished goods
produced by another person to the end
customer directly or through any other
intermediary.
No tax deducted under this section where
Local L/C and any other financing
agreement in respect of purchase or
procurement of rice, wheat, potato, onion,
garlic, peas, chickpeas, lentils, ginger,
turmeric, dried chilies, pulses, maize, coarse
flour, flour, salt, edible oil, sugar, black
pepper, cinnamon, cardamom, clove, date,
cassia leaf computer or computer
accessories, jute, cotton, yarn”and all kinds
of fruits.
25
Deduction from payment by
cellular mobile phone operator
(section-
52V)
Principal Officer of cellular mobile
phone operator company
10% at the time of credit or payment
whichever is earlier.
10% at the time of credit or
payment whichever is earlier.
On account of any revenue sharing or any
license fees or any other fees or charges to the
regulatory.
26
Import (section-
53)82C
The Commissioner of Customs
(a) 5% (general rate)
(b) 2% on certain imported goods (c)
Tk. 800 per ton in case of import of
certain items
(a) 5% (general rate)
(b) 2% on certain imported goods
(c) Tk. 800 per ton in case of import
of certain items
Please see Rule 17 for product list
27
House property
(section-53A, rule-
17B)
The government of any authority,
corporation or body or any company or
any banking company or any co-
operative bank or any NGO run or
supported by any foreign donation or
any university or medical college or
engineering college, any college or
school or hospital or clinic or
diagnostic center as tenant.
5% on gross rent 5% on gross rent
Explanation.- For the purpose of this section,
"house rent" means any payment, by
whatever name called, under any lease,
tenancy or any other agreement or
arrangement for the use of any building
including any furniture, fittings and the land
appurtenant thereto.
11 Contact: 01935131132

Schedule-1
28
Shipping business of a resident
(section-
53AA) 82C
Commissioner of Customs or any other
authority duly authorized.
5% of total freight received or
receivable in or out of Bangladesh.
receivable from services rendered
between two or more foreign
countries.
receivable in or out of Bangladesh.
receivable from services rendered
between two or more foreign
countries.
Tax will not deduct having a certificate is
received in prescribed manner from Deputy
Commissioner of Taxes concerned
29
Export of manpower
(section-53B, rule-
17C) 82C
The Director General, Employment &
Training.
10% 10%
30
Export of knit-wear
& woven garments, terry towel,
jute goods, frozen food, vegetables,
leather goods, packed food (section-
53BB)82C
Bank
1% of the total export proceeds of all
goods (other than Jute Goods)
0.60%of the total export proceeds of
Jute goods
1% of the total export proceeds of
all goods (other than Jute Goods)
0.60%of the total export proceeds
of
Jute goods
As per SRO 256-AIN-Income Tax-2017,
dated: 01 August 2017, the Tax rate was
0.70% on export proceeds other than Jute
products, this SRO was active till 30 June
2018, Afterwards no SRO is published by NBR
in this regard.
31
Member of stock exchanges
(section-
53BBB) 82C
The Chief Executive Officer of stock
exchange.
0.10% 0.10% .
32
Export of any goods except knit-
wear & woven garments, terry
towel, jute goods, frozen food,
vegetables, leather goods, packed
food (section-53BBBB)-
82C
Bank
1% of the total export proceeds of all
goods except goods mentioned in
section 52BB
1% of the total export proceeds of
all goods except goods mentioned in
section 52BB
As per SRO 256-AIN-Income Tax-2017,
dated: 01 August 2017, the Tax rate was
0.70% on export proceeds other than Jute
products, this SRO was active till 30 June
2018, Afterwards no SRO is published by NBR
in this regard.
33
Goods or property sold by public
auction (section
53C, rule-17D)82C
Any person making 5% of sale price 5% of sale price
In case of auction of tea then 1%
of sale price.
But property does not include plot of land
34
Deduction or collection of tax at
source from courier business of a
non- resident (Sec.
53CCC.)-82C
Any person being a company working
as local agent of a non- resident courier
company.
15% on the amount of service charge
15% on the amount of service
charge
"on the amount of service charge accrued
from the shipment of goods, documents,
parcels or any other things outside
Bangladesh.”
12 Contact: 01935131132

Schedule-1
35(a)
Payment to purchase film, drama,
radio-TV programed actors-
actresses (section-
53D)
Person responsible to purchase film,
drama,
radio-TV programme
10% 10%
35(b)
Payment to actors, actress, singers,
directors of film, drama, advertise
and any other programme
(section-
53D)
The person producing the film 10% 10%
No tax deducted if total payment does not
exceed tk. 10,000.
36
Deduction of tax at source from
export cash subsidy. (section-
53DDD)
82C
Bank 3% 3%
37
Commission, discount or fee
(section-53E (1) & (2)
Any person being a corporation, body
including a company making such
payment.
(1) 10%
(2) 1.5% on payment against
promotion, distribution or marketing
of goods of a company
(1) 10%
(2) 1.5% on payment against
promotion, distribution or
marketing of goods of a company
Provided that a cigarette manufacturer
company shall collect tax at the time of sale of
its goods to such distributor or to such other
persons at the rate of (3%) three per cent of
the difference between the sale price to
the distributor or the other persons and the
retail price fixed by such company.
38
Commission, discount or fee
(section-53E (3)
Any company other than oil marketing
company
(3) 5%=selling price to
Distributor*5% [Any company, other
than an oil marketing company,
which
sells goods to (a) any distributor; or
(b) any other person under a
contract; at a price lower than the
retail price fixed by such company,
shall collect tax from such distributor
or such any other person at the rate
of five percent (5%) on the amount
equal to B x C, where B
= the selling price of the company to
the distributor or the
other person; C = 5%:]
(3) 5%=selling price to
Distributor*5% [Any company,
other than an oil marketing
company, which
sells goods to (a) any distributor; or
(b) any other person under a
contract; at a price lower than the
retail price fixed by such company,
shall collect tax from such
distributor or such any other
person at the rate of five percent
(5%) on the amount equal to B x C,
where B
= the selling price of the company to
the distributor or the
other person; C = 5%:]
39
Commission or remuneration paid
to agent of foreign buyer (section-
53EE) -82C
Bank 10% 10%
13 Contact: 01935131132

Schedule-1
40(a)
Interest on saving deposits & fixed
deposits (section-
53F(1) -82C
such payment.
a. 10% if furnishes e-TIN or balance
does not exceed tk. 100,000 at any
time in a year.
b. Otherwise 15% if fail to furnishes e-
TIN.
c. 10% where the person receiving
such interest or share of profit is a
public university, or an educational
institution whose teachers are
enlisted for MPO, following the
curriculum approved by the
Government and whose governing
body is also formed as per
Government rules or regulations, or
any professional institute that is
ICAB, ICMAB, ICSB.
a. 10% if furnishes e-TIN or balance
does not exceed tk. 100,000 at any
time in a year.
b. Otherwise 15% if fail to furnishes
e- TIN.
c. 10% where the person
receiving such interest or share of
profit is a public university, or an
educational institution whose
teachers are enlisted for MPO,
following the curriculum
approved by the Government and
whose governing body is also
formed as per Government rules
or regulations, or any professional
institute that is ICAB, ICMAB, ICSB.
This shall not apply on the amount of
interest of share of profit arising out of any
deposit pension scheme sponsored by the
government or by a schedule bank with prior
approval of the Government.
40(b)
Interest on saving deposits & fixed
deposits or any term deposit by or
in the name of Fund (section-
53F(2) -82C
such payment.
5% 5%
41
Real state or land development
business (section-
53FF) 82C
Any person responsible for registering
any document for transfer or any land
or any building or apartment.
Annexure-B Annexure-B
42
Deduction at source from
insurance commission.- (Sec-
53G)-82C
Insurance company 5% 5%
43
Deduction at source from fees, etc.
of surveyors of general insurance
company.- (Sec-53GG)-82C
Insurance company 15% 15%
RemarksSl. # Head of withholding with section Withholding authority/Remarks
14 Contact: 01935131132

Schedule-1
44
Transfer of property
(section- 53H) 82C
Any person responsible for registering
any document of a person.(Registering
Office)
Annexure-C Annexure-C
45
Collection of tax from lease of
property for at least 10 years
(section 53HH)
Any Registering Officer responsibel for
registering any document in relation to
any lease granted by Rajuk, CDA, RDA,
KDA, and NHA or any person being an
individual, a firm, an association of
persons, a Hindu undivided family, a
company or any artificial juridical
person.
4% 4%
46
Interest on deposit of post office &
saving bank account
(section-53I)
such payment.
10% 10%
47
Rental value of vacant land or plant
or machinery (section-53J,rule-
17BB)
The Government or any authority,
corporation or body including it’s
units, the activities or any
NGO, any university or medical college,
dental
college, engineering college
responsible for
making such payment.
5% of the rent 5% of the rent
48
Advertisement bill of newspaper or
magazine or private television
channel, private radio station, or
any web site or any person on of
advertisement etc (section-53K)
The Government or any authority,
corporation or body including its units,
the activities or any
NGO, any university or medical college,
dental
college, engineering college
responsible for
making such payment.
4% 4%
Remarks
15 Contact: 01935131132

Schedule-1
49
Collection of tax from transfer of
shares or mutual fund units by the
sponsor shareholders of a company
listed on stock exchange (section-
53M) 82C
Securities & Exchange Commission 5% 5%
50
Collection of tax from transfer of
share of shareholder of stock
exchange (53N)-
82C
Principal Officer 15% on any gain 15% on any gain
51
Deduction of tax from any sum paid
by real estate developer to land
owner.-[U/S 53P]
Any person engaged in real estate or
land development business
15% 15%
Any sum to the land owner on account of
signing money, subsistence money, house
rent or in any other form called by whatever
name for the purpose of development of the
land of such owner in accordance with any
power of attorney or any agreement or any
written contract,
52 Dividends (Section 54) The principal officer of the company
Resident/ non-rsident Bangladeshi
company--------20%
Resident/ non resident Bangladeshi
person other than company
-If 12 digits TIN-------------10%
If no 12 digits TIN---------15%
Resident/ non-rsident Bangladeshi
company--------20%
Resident/ non resident Bangladeshi
person other than company
-If 12 digits TIN-------------10%
If no 12 digits TIN---------15%
53
Income from lottery (Section 55)
82C
such payment
20% 20%
54
Income of non-residents (Section
56)
section 52 or any other person
responsible for making payment to a
non-resident
Annexure-D Annexure-D
16 Contact: 01935131132

17 | P a g e
Compiled by: Masum Gazi
Annexure-A
Deduction from the payment of certain services [Section 52AA]
(1) Where any payment is to be made by a specified person to a resident on account of a service as
mentioned in this section, the person responsible for making the payment shall, at the time of making
such payment, deduct income tax at the rate specified in the Table below: -
Sl.
No
Description of service and payment Rate of deduction of tax
Where base
amount does
not exceed Tk.
25 lakh
Where base
amount
exceeds Tk.
25 lakh
1 Advisory or consultancy service 10% 12%
2
Professional service, technical services fee, or technical
assistance fee
10% 12%
3
i. Catering service;
ii. Cleaning Service;
iii. Collection and recovery service;
iv. Private security service;
v. Manpower supply service;
vi. Creative media service;
vii. Public relations service;
viii. Event management service;
ix. Training, workshop, etc organization and
management service;
x. Any other service of similar nature-
(a) on commission or fee
(b) on gross bill amount
10%
1.5%
12%
2%
4
Media buying agency service
(a) on commission
(b) on gross amount
10%
0.5%
12%
0.65%
5 Indenting commission 6% 8%
6 Meeting fees, training fees or honorarium 10% 12%
7
Mobile network operator, technical support service
provider or service delivery agents engaged in mobile
banking operations
10% 12%
8 Credit rating agency 10% 12%
9 Motor garage or workshop 6% 8%

18 | P a g e
Provided that if the amount for services mentioned in SL No. 3 and 4 of the Table shows both
commission or fee and gross bill amount tax shall be the higher amount between (i) and (ii) where-
(i) tax calculated on commission or fee applying the relevant rate in the table; and
(ii) B x C x D, where-
B = Gross bill amount
C = 10% for Sl. 3 and 3.5% for Sl. 4, and
D = rate of tax applicable on commission or fee:
Provided further that the rate of tax shall be fifty percent (50%) higher if the payee does not
have a twelve-digit Taxpayer’s Identification Number at the time of making the payment:
Provided further that where the Board, on an application made in this behalf, gives certificate
in writing that the person rendering such service is otherwise exempted from tax under any provision
of this Ordinance, the payment referred to in this section shall be made without any deduction or
with deduction at a lesser rate for that income year.”] Subs.by F. A. 2017
(2) In this section-
(a)“specified person” shall have the same meaning as in clause (a) of sub-section (2) of section
52;
(b)“contract” includes a sub-contract, any subsequent contract, an agreement or an
arrangement, whether written or not;
(c)“base amount” means the higher of the-
(i) contract value; or
(ii) bill or invoice amount ; or
(iii) payment;
(d) “payment” includes a transfer, a credit or an adjustment of payment;
(e) “professional services” means-
(i) services rendered by a doctor;
(ii) services rendered by a person carrying on any profession or any other services
applying professional knowledge.
10 Private container port or dockyard service 6% 8%
11 Shipping agency commission 6% 8%
12 Stevedoring/berth operation commission 10% 12%
13
Transport service, car rental [or ride sharing service] Ins
by F.A. 2018
3% 4%
14
Any other service which is not mentioned in Chapter VII
of this Ordinance and is not a service provided by any
bank, insurance or financial institutions
10% 12%

19 | P a g e
Annexure-B
Collection of tax from persons engaged in real estate or land development business [Section
53FF]
Any person responsible for registering any document for transfer of any land or building or
apartment, under the provision of Registration Act 1908 (XVI of 1908), shall not register the
document unless tax is paid at the following rate by the transferor who is engaged in real estate or
land development business,-
(a) in case of building or apartment [, constructed for residential purposes,] Added F.A. 2011 situated-
(i) at Gulshan Model Town, Banani, Baridhara, Motijeel Commercial Area and Dilkusha
Commercial Area of Dhaka, taka [one thousand and six hundred] Subs.by F. A.2013 per square
metre;
(ii) at Dhanmondi Residential Area, Defense Officers Housing Society (DOHS), Mahakhali,
Lalmatia Housing Society, Uttara Model Town, Bashundhara Residential Area, Dhaka
Cantonment Area, KarwanBazar Commercial Area of Dhaka and Panchlaish Residential Area,
Khulshi Resindential Area, Agrabad and Nasirabad of Chittagong, taka [one thousand and five
hundred]Subs.by F. A.2013 per square metre;
[(iii) in areas other than the areas mentioned in sub-clauses (i) and(ii)-
A. if the area is within Dhaka South City Corporation, Dhaka North City Corporation and
Chittagong City Corporation, taka one thousand per square metre;
B. if the area is within any other city corporation, taka seven hundred per square metre;
C. any other area, taka three bundred per square metre:
Provided that the rate of source tax under clause (a) in respect of a residential
apartment shall be twenty percent (20%) lower if the size of the apartment, including
common space, is not more than seventy square metre, and forty percent(40%) lower if the
size of the apartment, including common space, is not more than sixty square metre.] Subs.by F. A.
2016
[(aa) in case of building or apartment or any space thereof, constructed not for the residential
purposes, situated-
(i) in areas mentioned under sub-clause (i) of clause (a), taka [six thousand and five
hundred]Subs.by F. A.2013 per square metre;
(ii) in areas mentioned under sub-clause (ii) of clause (a), taka [five thousand ]Subs.by F.
A.2013 per square metre;
(iii) in areas other than the areas mentioned in sub-clauses (i) and(ii)-
A. if the area is within Dhaka South City Corporation, Dhaka North City Corporation and
Chittagong City Corporation, taka three thousand and five hundred per square metre;
B. if the area is within any other city corporation, taka two thousand and five hundred per
square metre;
C. any other area, taka one thousand and two hundred per square metre.] Subs.by F. A. 2016
(b) in case of land to which the document relates and on which stamp duty is chargeable under the
Stamp Act, 1899 (Act No. II of 1899) at the rate of-

20 | P a g e
(i) five percent for Dhaka, Gazipur, Narayanganj, Munshiganj, Manikganj, Narsingdi and
Chittagong districts;
(ii) three percent for any other district.]Subes F. A. 2012
Provided that in case of transfer of any non-agricultural land valued at a sum exceeding one
lakh taka situated outside the jurisdiction of any City Corporation, Paurashava or Cantonment
Board, income-tax shall be paid at the rate of five percent upto August 31 2009 and one percent
from September 1 2009 on the deed value of the property to which the document relates.
Annexure-C
Collection of tax on transfer, etc. of property. [section 53H]
(1) Any registering officer responsible for registering any document of a person under the provisions
of clause (b), (c) or (e) of sub-section (1) of section 17 of the Registration Act, 1908 (XVI of 1908)
shall not register any document unless tax is paid at such rate as may be prescribed in relation to the
property to which the document relates and on which stamp-duty is chargeable under Stamp Act,
1899 (II of 1899) by the person whose right,title or interest is sought to be transferred, assigned,
limited or extinguished thereby, at the time of registration of such document:
Provided that the rate of tax shall not exceed taka ten lakh and eighty thousand per katha (1.65
decimal) for land, taka six hundred per square meter for any structure, building, flat, apartment or floor
space on the land, if any, or four per cent of the deed value, whichever is higher.
(2) Nothing in this section shall apply to a document relating to:
(a) sale by a bank or any financial institution as a mortgagee empowered to sell;
(b) mortgage of any property to any bank or any financial institution against any loan
Collection of tax on transfer of property. [Rule 17II]
For the purposes of collection of the income tax under section 53H of the Ordinance, any
registering officer responsible for registering any document of a person, under the clause
(b), (c) or (e) of sub-section (1) of section 17 of the Registration Act, 1908 (XVI of 1908), shall
collect from the person whose right, title or interest is sought to be transferred, assigned,
limited or extinguished thereby, and tax shall be collected at the following rate:
(a) Rate of tax for land or land & building located in the following commercial areas:
SL
No.
Name of the commercial area or areas Rate of tax per katha (1.65
decimal)
1. Gulshan, Banani, Motijheel, Dilkhusha,
North South Road, Motijheel Expansion
areas and Mohakhali of Dhaka
4% of the deed value or taka
10,80,000/- whichever is higher
2. Karwan Bazar of Dhaka 4% of the deed value or taka
3. Agrabad and CDA Avenue of Chittagong 4% of the deed value or taka

21 | P a g e
Provided that where any structure, building, flat, apartment or floor space is situated on the
land, an additional tax shall be paid at the rate of taka 600/- (six hundred) per square meter or
(4%) four per cent of the deed value of such structure, building, flat, apartment or floor space,
whichever is higher.
(b) Rate of tax for land or land & building located in the following areas:
SL No. Name of the area or areas Rate of tax per katha
(1.65 decimal)
1. Uttara (Sector 1-9), Khilgaon rehabilitation area (beside 100
feet road), Azimpur, Rajarbagh rehabilitation area (beside
bishwa road), Baridhara DOHS, Bashundhara (Block: A–G),
Niketon of Dhaka, Agrabad, Halishohar, Panchlaish, Nasirabad,
Mehedibag of Chittagong
4% of the deed value or
taka 90,000/- whichever
is higher
2. Gulshan, Banani and Baridhara of Dhaka 4% of the deed value or
taka 3,00,000/-
whichever is higher
3. Dhanmondi of Dhaka 4% of the deed value or
taka 2,40,000/-
whichever is higher
4. Kakrail, Segunbagicha, Bijoynagar, Eskaton, Green Road,
Elephant Road, Fakirapool, Arambagh, Maghbazar (within one
hundred feet of main road), Tejgaon Industrial Area, Sher-e-
Banglanagar Administrative Area, Agargaon Administrative
Area, Lalmatia, Mohakhali DOHS, Cantonment of Dhaka and
Khulshi of Chittagong
taka 1,80,000/- ever is
higher
5. Kakrail, Segunbagicha, Bijoynagar, Eskaton, Green Road,
Elephant Road area (outside one hundred feet of main road) of
Dhaka
taka 1,20,000/-
whichever is higher
6. Green Road (from Road 3 to 8 of Dhanmondi Residential Area
of Dhaka)
taka 2,40,000/-
whichever is higher
7. Uttara (Sector 10 to 14), Nikunj (south), Nikunj (North), Badda
Rehabilitation Area, Ganderia Rehabilitation Area, Syampur
Rehabilitation Area, IG Bagan Rehabilitation Area, Tongi
Industrial Area of Dhaka
is higher
4. Narayanganj, BangaBandhu Avenue, Badda,
Sayedabad, Postogola and Gandaria of
Dhaka
5. Uttara SonargaonJanapath, Shahbag,
Panthapath, Banglamotor, Kakrail of Dhaka
6. Nababpur and Fulbaria of Dhaka 4% of the deed value or taka
3,00,000/- whichever is higher:

22 | P a g e
8. Syampur Industrial Area, Postagola Industrial Area and Jurain
Industrial Area of Dhaka
is higher
9. Khilgaon Rehabilitation Area (beside less than 100 feet road),
RajarbaghRehabilitation Area (beside 40 feet and other
internal road) of Dhaka
taka
10. Goran (beside 40 feet road) and Hajaribagh Tannery Area of
Dhaka
is higher:
Provided that where any structure, building, flat, apartment or floor space is situated
on the land, an additional tax shall be paid at the rate of taka 600/- (six hundred) per square
meter or (4%) four per cent of the deed value of such structure, building, flat, apartment or
floor space, whichever is higher.
(c) Rate of tax for land or land & building located in the following areas:
Name of the area or areas Rate of tax
1. Within the jurisdiction of Rajdhani Unnayan Kartripakya
(RAJUK) and Chittagong Development Authority (CDA)
except areas specified in schedule (a) and (b)
4% of deed value
2. Within the jurisdiction of Gazipur, Narayanganj, Munshiganj,
Manikganj, Narsingdi, Dhaka and Chittagong districts
[excluding RajdhaniUnnayanKartripakya (RAJUK) and
Chittagong DevelopmentAuthority (CDA)], and within any
City Corporation (excluding Dhaka South City Corporation
and Dhaka North City Corporation) and Cantonment Board
3% of deed value
3. Areas within the jurisdiction of a paurasabha of any district
headquarter
3% of deed value
4. Areas of any other Pauroshova 2% of deed value
5. Any other area not specified in schedule (a), (b) and (c) 1% of deed value.
Annexure-D
Deduction from income of non-residents [ Section 56]
(1) Subject to the provisions of sub-section (2), the specified person or any other person responsible
for making payment to a non-resident of any amount which constitutes the income of such non-
resident chargeable to tax under this Ordinance shall, unless such person is himself liable to pay tax
thereon as agent, at the time of making such payment, deduct tax on the amount so payable at the
rate, specified below:
SL. No Description of services or payments
Rate of deduction of
tax
1 Advisory or consultancy service 20%

23 | P a g e
2 Pre-shipment inspection service 20%
3
Professional service, technical services, technical know-how or
technical assistance
20%
4
Architecture, interior design or landscape design, fashion
design or process design
20%
5 Certification, rating etc. 20%
6
Charge or rent for satellite, airtime or frequency, rent for
channel broadcast
20%
7 Legal service 20%
8 Management service including even management 20%
9 Commission 20%
10 Royalty, license fee or payments related to intangibles 20%
11 Interest 20%
12 Advertisement broadcasting 20%
13 Advertisement making or [Digital marketing] Ins. by F.A 2017 15%
14
Air transport or water transport [not being the carrying
services mentioned in sections 102 or 103A] Ins by F.A. 2018
7.5%
15
Contractor or sub-contractor of manufacturing, process or
conversion
7.5%
16 Supplier 7.5%
17 Capital gain 15%
18 Insurance premium 10%
19 Rental of machinery, equipment etc. 15%
20
Dividend-
(a) company—-
(b) any other person, not being a company—
20%
30%
21 Artist, singer or player 30%
22 Salary or remuneration 30%

24 | P a g e
23 Exploration or drilling in petroleum operations 5.25%
24 Survey for oil or gas exploration 5.25%
25
Any service for making connectivity between oil or gas field
and its export point
5.25%
26 Any payments against any services not mentioned above 20%
27 Any other payments 30%
[(2) Where, in respect of any payment under this section, the Board, on an application made in this
behalf, is satisfied that due to tax treaty or any other reason the non-resident is not be liable to pay
any tax in Bangladesh, or is liable to pay tax at a reduced rate in Bangladesh, the Board may issue a
certificate to the effect that the payment referred to in sub-section (1) shall be made without any
deduction or, in applicable cases, with a deduction at the reduced rate as mentioned in the certificate.
(2A) Tax deducted under this section shall be deemed to be the minimum tax liability of the payee in
respect of the income for which the deduction is made, and shall not be subject of refund or set off
or an adjustment against a demand.] Ins by F.A. 2018
(3) In this section,-
(i) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of
section 52 of this Ordinance;
(ii) “payment” includes a transfer, a credit or an adjustment of payment.]Subs.by F. A. 2016

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