Solution of Income Tax in Bangladesh

Solution of Company Tax of Bangladesh

2014-08-22T07:06:00.002-07:00

Company Tax

Introduction: Bangladesh has a developing economy. It opens its market for foreign investors since 1991. Since then various business oriented steps have been taken to attract the investors. So it is very easy to do business here. To boost up the economy her Taxation policy is progressive . In the context of Bangladesh, Corporate Taxation means charging of tax on income or profits of companies. It differs from tax imposed on individuals.

1. What is a Company?

A company is a business organization that makes, buys, or sells goods or provides services in exchange for money.

The owners of a company have limited liability and the business has a separate legal personality from its owners. Corporations or company can be either owned by individuals or Govt. A non-government for-profit corporation or company is owned by its shareholders and run by board of directors. A privately owned, for-profit corporation is listed on a stock exchange .

02. Definition of Company:

Under section 2(20) of the Income Tax Ordinance 1984, “Company” means a company as defined in the Companies Act, 1913 (VII of 1913) or Companies Act, 1994 (Act No. 18 of 1994) and includes-

(a) A body corporate established or constituted by or under any law for the time being in force;

(b) Any nationalized banking or other financial institution, insurance body and industrial of business enterprise;

(bb) Any association or combination of persons called by whatever name, if any of such persons is a company as defined in the Companies Act 1913 (VII of 1913) or Companies Act, 1994 (Act No. 18 of 1994);

(bbb) any association or body incorporated by or under the laws of a country outside Bangladesh, and’

(c) Any foreign association or body not incorporated by or under any law, which the Board may, by general or special order, declare to be a company for the purposes of this Ordinance.

03. Classification of Companies:

There are three categories of companies

(1) Bank, insurance or Financial institution;

(2) a) Publicly traded company

b) Non-publicly traded company

(3) Mobile Phone Operator company

04.What is Publicly Traded Company:

‘Publicly traded Company” bears the following features:

(a) Registered in Bangladesh under the Companies Act 1913 or 1994;

(b) Enlisted with the Stock Exchange before the end of the concerned income year in which income tax assessment will be made.

05. Responsibilities of a Corporate Taxpayer under Income Tax Laws

A corporate taxpayer has the following responsibilities according to various sections in the Income Tax Ordinance 1984:

(1) Responsibilities as an assessee (taxpayer):

(2) Responsibilities as a Tax collector on behalf of authority:

(1) As an assessee (taxpayer):

- Collection of TIN (Tax-payer’s Identification Number) Certificate (u/s 184B, 184A)

- Displaying of TIN Certificate u/s 184c

- payment of Advance income tax u/s 48,64-73

- Payment of tax as per tax return u/s 74

- Filing of statements and return in prescribed forms u/s 75

- Filing of revised return before assessment u/s 78

- Maintenance of accounts and documents: u/s 35

- Production of accounts and documents on receipts of a notice from the DCT: u/s 79

- Compliance with various notices like

· Notice of demand u/s 135,

· Notice to file return u/s 77,

· Notice to produce accounts, statements and documents u/s 79

· Notice to attend hearing u/s 83(1) in case of assessment after hearing,

· Notice to inform re-assessment u/s 93(1),

· Notice to attend hearing u/s 130 in case of imposing penalty u/s 123-128,

· Notice calling for information u/s 113

(2) As a tax collector on behalf of tax authority:

- Having an Account number u/s 184BB

- Tax deduction at sources (TDS), and deposit it to the Treasury u/s 48-63

- Giving documents of TDS with necessary information u/s 58, and

- Furnishing annual returns in case of payment of salary (u/s 108), interest (u/s 109) and dividend (u/s 110).

(3) Obligations of related persons of a corporate entity.

- Filing a return of the income of any other person for whom the company is assessable [u/s 75(1B)]

- Joint liability in case of director of a private company (u/s 100)

- Joint Liability in case of liquidator of a private company (u/s 101).

06. TIN (Tax-payer’s Identification Number) Certificate for a Company:

Where is it necessary?

In following cases, a company requires mandatory submission of TIN Certificate u/s 184A:

(1) Registration of a company under Companies Act,1994

(2) in respect of sponsor directors u/s 184A(1).

(3) Opening a letter of credit for import [clause (a)];

(4) Submitting an application for an import registration certificate [clause (aa)]

(5) Renewal of trade license

(6) Submitting tender documents [clause (c)];

(7) Registration for purchase of a land, building or an apartment [clause (f)];

(8) Registration, change of ownership or renewal of fitness of a car, jeep or a microbus [clause (g)];

(9) for ISD connection [clause (k)].

Where to obtain TIN Certificate?

from the Deputy Commissioner of Taxes (DCT) under whose jurisdiction Company is being assessed

What is required?

For Taxpayer’s Identification Number (TIN) it should do the following things

an application in the form prescribed under rule (u/r) 64 B.

documents of incorporation in Joint Stock Companies

What to do

display such certificate at a conspicuous place of the company’s business premises.

07. Submission of Income Tax Return

When to file

by the fifteenth day of July next following the income year

or, where the fifteenth day of July falls before the expiry of six months from the end of the income year, before the expiry of such six months u/s 75(3),

In case of company though 15th July is the last date of submission of return but every company will get at least 6 months time from the end of the accounting year to submit tax return. Some examples are tabulated below: -

Sl. No.	Year Ending	Last date of submission of Return
1.	31.12.2007	15.07.2008
2.	30.06.2008	31.12.2008
3.	31.03.2008	30.09.2008
4.	30.09.2008	15.07.2009
5.	30.07.2008	15.07.2009
6.	15.07.2008	15.07.2009

how to extend time

on application from the company, the assessing officer [DCT] may extend the return filing period up the three months from the date so specified and the date may be further extended up to another three months with the approval of Inspecting Joint Commissioner.

The return should be signed by the principal officer [75(2) (b) (iii)].

Under section 2(48), ‘principal officer’, used with reference to a company includes-

(a) DCT has served a notice of his intention to treat him as principal officer thereof.

(8)Universal self-assessment (Sec. 82 BB):

It is introduced in our country from the assessment year 2007-2008 to make assesses relieve of hassle. Before submitting return in this method an assesse has to do the following things

tick the box universal self assessment at the top of the return form
return must be correct and complete.
properly signed by principal officer (Managing director, manager, secretary, treasurer, accountant or any officer responsible for management or administration of the affair
submitted with Audit Report/ Statement of accounts from a CA
Separate statement is to be submitted for:

q Any income from other sources e.g. interest, dividend, etc.

q Tax exempted income [rule 24]

q Information regarding name, address and TIN of the directors of the company (rule 24]

q Evidence of tax payment on the basis of income disclosed in the return.

to be submitted within the last date of submission of return or within the extended time

allowed by the DCT.

Tax as per return (if any) is to be paid before submission of return.

Computation of income according to income tax law [rule 24]

What to do after submission of Return

obtain a receipt of such return and that receipt will mean that assessment is complete

Tax audit and reopen of cases :

The return submitted at this system may be selected by the NBR or its subordinate authority (if so authorized by the Board) for audit. The Board will determine the manner of such selection. But to keep himself out of audit, an assessee will have to fulfill the following conditions:

initial capital investment in case of new assessee should be at least 4 times of shown income.

Should not transfer within 5 years from the end of the assessment year in any manner

Submit all necessary documents of income and investment

Reopen If any concealment has been detected in the return submitted by the assessee under universal self assessment scheme within 6 years from the end of the assessment year then the DCT may re-open the case and proceed to assess further.

If the return is selected for audit or reopen what to do

Giving proper answer of issue/issues of audit or reopen

respond to notice under section 83(1)/93 and appear before concerned DCT

Submit all requirements from tax office

09. Method of Accounting and maintenance of Accounts [sec 35]

q income shall be computed with regular method of accounting followed by the company [sec 35(1).

q if there is no regular method of accounting or if the method cannot be properly ascertained, DCT shall compute income in a fit method [sec 35(4)]

10.How to compute income from Business or Profession (S. 28):

Profits and gains of any business or profession run by the assessee at any time during the income year shall be classified and computed under this head. The following income shall be classified and computed under the head of “Income from business or profession”: -

a) Profits and gains of any business or profession

b) Value of benefit and the trading liability referred to in sec 19(15)

· Recovery of any loss, bad debt or expenditure which was previously allowed as deduction

· Any amount of interest on loan to any commercial bank, BSB, BSRS, any bank run on Islamic principles allowed as deduction but remains unpaid for three years

· Trading liability remains unpaid for three years

c) Excess amount referred to in sec-19 (16)

· Gains on disposal of building, plant used for business

d) Excess amount referred to in sec-19 (18)

· Insurance, salvage or compensation received for building, plant being discarded, demolished

e) Sale proceeds referred to in sec-19 (20)

· Gains on disposal of capital asset on scientific research

f) The amount of income under section 19(23)

Sale of export quota by an exporter of garments

g) Value of any benefit or perquisite arising from business

(a). Allowable expenditure for business under section-29 :

Rent;

Interest on borrowed money;

Depreciation allowance.

Any expenditure incurred wholly & exclusively for the purpose of business of profession.

(b). Inadmissible Expenses u/s 30

i) Payment of salary, if tax has not been deducted at source u/s 50[sec. 30(a)]

ii) if tax or VAT not deducted at the time of payment [u/s 30(aa)].

iii) Payment of brokerage or commission to a non-resident person without deduction of tax at source u/s 56 [vide u/s 30(c)].

iv) Payment to employees’ provident fund or other funds unless deduction of tax at source while making the payments from the fund ‘u/s 30(d)].

v) Payment of perquisites or other benefits to an employee in excess to TK. 2,50,000[u/s 30(e) ] except according to Government decision published in the official [Proviso to sec. 30(3)].

vi) Expenditure on foreign travels of employees and their dependents, spouse and minor children including step and adopted children for holidaying and recreation

vii) Distribution of free samples exceeding the following limit as per Rule 65C [vide u/s 30(f)(iv)]:

Turnover	Deduction for expenses for free sample as % of turnover
Turnover	Pharmaceutical Industry	Other Industry
Up to Tk. 5 crore	2%	1.5%
Exceeding Tk. 5 crore, but up to Tk. 10 crore	1%	0.75%
Exceeding Tk. 10 crore	0.5%	0.375%

viii) Entertainment expenditure exceeding the limits specified below as per Rule 65 [vide u/s 30(f) (i)].

Profits, income and gains	Admissible deduction
First Tk. 10 lakh	4% of the above profit, income and gains
On the balance	2% of the above profit, income and gains

ix) Head Office expenses: Expenditure exceeding 10% of the profit under the head by a company not incorporated in Bangladesh under the Companied Act 1994. [u/s 30(g).

x) Royalty or technical expenses: Payment by way of royalty, technical service fee technical know how fee or technical assistance fee exceeding 8% of the profit [u/s 30(h).

xi) Salary not through bank: Payment by way of salary or remuneration made otherwise than by crossed cheque or bank transfer by a person to an employer having gross monthly salary of Taka 15,000/- or more u/s 30(I), inserted by the FA 2006]

xii) Incentive bonus: Expenditure by way of incentive bonus exceeding 10% of disclosed net profit [u/s 30(f), inserted by the FA 2006].

xiii) Overseas traveling: Expenditure by way of overseas traveling exceeding 1% of disclosed net profit [u/s 30(k), inserted by the FA 2006].

(C). Restriction on Disallowance by the DCT [sec. 30A]

The DCT shall not make any disallowance without specifying the reasons for such disallowances of deduction.

(e). Set-off and Carry-forward of Losses [Section 37-43]

Where loss is assessed in any head of income, the assessee is entitled to set off the loss against its income assessed in other heads of that year.

However, loss on speculation business and loss on capital gain cannot be set off against income from any other head. Such loss can be set off only against the income of respective speculative business or capital gains.

When loss cannot be wholly setoff, then the unabsorbed loss under the following four heads shall be carried forward but for not more than six successive assessment years:

· Speculation business income

· Other business income

· Capital gain and

· Agricultural income.

Important Notes—

· Loss from business or profession shall not be set off, or be carried forward for set off, against income from house property. [F.O-2007]

· In case of capital loss, it cannot be carried forward if the loss does not exceed Taka 5,000/-.

· Unabsorbed depreciation loss can be carried forward for unlimited period.

· Loss so carried forward is to be set off against income of the respective source (in case of business income/head only.

· Loss from the source of exempted income can not be set off against any source of taxable income.

[i]

Solution for resident foreigners in Bangladesh

2012-02-26T17:40:00.000-08:00

As Bangladesh has diplomatic relation with many countries and representative of those countries enjoy warm entertainment here so problem arisen regarding their paying tax . But keeping pace with the whole world Bangladesh provides facilities for them . Moreover while coming from abroad a problem arises about how much baggage or gold , silver etc. a passenger can bring with him. These solutions are provided here.

The income of following resident foreigners are excluded from total income

source : 6^th schedule part A para 7 of I T O ,1984

a) ambassador/high commissioner, envoy, minister, charge d’affairs , commissioner, counsellor, consul de carriere, adviser or attache of an embassy/ high commission, legation and commission from such state

b) trade commissioner or other official representative of a foreign state in Bangladesh under some conditions

c) a member (who is not a citizen in Bangladesh ) of the staff of any officials stated above

conditions not a citizen of Bangladesh

subject of the country represented or some other foreign state

not engaged in any other business / profession

if concerned country provides similar exemptions for similar members of staffs

How much gold or baggage can a passenger bring from abroad without duty

source: proggapon ......

S R O no 165ain/ 2011/2352 / customs sec 219 of customs act 9 june ,2011

a passenger can bring gold / silver ( bar or ornaments) weighing 200 gm without any customs duty

facilities for crew, sailor and others coming from abroad

Bangladeshi crew or officer working in Bangladeshi airlines coming from abroad or a foreign airlines when conducting flight in Bangladesh baggage upto 100 us dollar

Bangladeshi sailor or officer working in foreign vessel baggage upto 300 us dollar

customs declaration

compulsory for all types of passengers from abroad

Double Taxation Avoidance Agreement & method of determining notional income

2012-02-21T18:34:00.001-08:00

Today I am going to discuss about double taxation which is a very common problem faced by a resident or non resident when comes from abroad . If the country has agreement with Bangladesh , the taxpayer ( assesse) may not pay tax again under some conditions . In fact , to develop economy Govt. of many countries sign many treaties with each other. It relieves them from discrimination and misunderstanding. It develops mutual understanding and friendship. Details of it is available here.

Double Taxation Avoidance Agreement (Sec. 144 read with 7th Schedule) :

The Bangladesh model of Agreement on Avoidance of Double Taxation consists of 29 Articles . Bangladesh has agreement with more or less 32 countries.

name of continent	country
Asia	India, Sri Lanka, Pakistan, China, Japan, Singapore, Korea, Philippines, Thailand, Vietnam, Myanmar, Malaysia, Indonesia, Mauritius, Saudi Arabia, U A E, Oman, Turkey
Europe	UK, Norway, Sweden, France, Germany , Netherlands, Italy, Denmark ,Romania, Belgium , Poland, Switzerland
North America	Canada, USA

Requirements

Tax clearance certificate from where he came

method of determining the amount of notional income of non resident

Sometimes non resident taxpayer may have profit/ gain/ income in Bangladesh . But at that time he may be in a foreign country. Therefore, it is necessary to address the issue here.

Rule-35 read with rule-34 prescribes the method of determining the amount of notional income in respect of which the non resident may be charged under section 104.

who will charge ?

D C T

when?

actual amount of profit/ gain/ income accruing or arising in Bangladesh to non resident Bangladeshi cannot be determined

source

business connection, any property ,any asset in Bangladesh

amount :

to be determined by DCT on the basis of percentage of turnover accruing or arising considered reasonable or on profits computed under provisions

foreign remittance, business

2012-02-20T18:43:00.000-08:00

Foreign Remittance

Today I am going to discuss about foreign remittance which is a very important issue in Bangladesh . A lot of Bangladeshies live in different parts of the world. They earn and send foreign currency . But the problem they face at the time of assessment whether the currency sent by them is exempted from tax or not .

Foreign remittance exempted from tax

As per S.R.O. No. 216-Law/ Income tax/2004 dated 13/07/2004 foreign income of a Bangladeshi national , irrespective of resident or non-resident, is exempt from payment of tax if it comes through official channel.

Is every type of foreign income remittance?

If any person receives any amount of foreign currency in Bangladesh for his activities ( service ) with that country ,it will not be treated as remittance. For example , income from working in internet is not remittance .

It is to be noted that remit means send . If a person does not send / remit currency through banking channel from a foreign country it cannot be remittance.

Declaration at the air/ sea port

When a person comes from a foreign country he has to declare the currency he has with him before the customs at the air or sea port . It is to be shown as income in his return.

If tax paid by a resident Bangladeshi in a foreign country without tax treaty-

clearance certificate:-

If any resident assessee ( tax payer) wants to prove to the satisfaction of the DCT that he has paid tax at foreign country with which there is no reciprocal tax treaty with Bangladesh , he has to show clearance certificate from that country

manners of paying tax to that country:-

by deduction or otherwise on any income which has accrued or arisen to him outside Bangladesh

how to calculate tax in Bangladesh:-

tax payable by the assessee (tax payer) _ a sum equal to the tax

in Bangladesh calculation on such income

(doubly taxed) at the average rate of tax of Bangladesh or the average rate of tax of the foreign country

whichever is less.

Business between resident and non resident

Business may be carried on between a resident and a non resident .The course of business may be so arranged that the resident makes either no profit or profits less than the ordinary profit in that business. Such an arrangement might deprive Bangladesh Govt. from tax. In such cases the resident may be charged in respect of the profits which he has not in fact made but which he might reasonably be considered to have made i. e on accrual basis. (sec.104).

D CT will determine amount of income.

tax rate, rebate and tips for resident and non resident

2012-02-19T17:40:00.000-08:00

Today I am going to discuss about tax rate , tax rebate for resident and nonresident for the assessment year 2013-14 and also legal time frame for filing return. A common problem for the taxpayers ( assessee) is how they can file return timely if they are in abroad at the time of filing return . Can anyone do it in their favor ? Solution of the problems is given here.

Tax rate:

non resident non Bangladeshi / Foreign- 25% or at the maximum rate

Bangladeshi non-resident pays tax in general rate

for assessment year 2013- 2014 income of individual

from tk. 1 to tk.2,20,000 tax nil

   for next tk. 3,00,0000 tax @    10%

                                for next tk. 4,00,000     tax    @ 15%

for next tk. 3,00,000 tax @ 20%

for next tax @ 25%

Exception for women and 65years old taxpayer
tax exempted income tk 2,50,000

for handicapped taxpayer
tax exempted income tk 3,00,000

Investment tax rebate :

¨ non resident non Bangladeshi/ Foreigner will not get rebate

¨ Bangladeshi resident or non resident will get rebate

rate for assessment year 2011-2012

@ 15% (30% of total income or actual investment or tk. 1,50,00,000/- 1 and half crore, whichever is lower)

When to file return

for individual/ firm/AOP/HUF –

· from 1st day of July to 30 th day of September

for govt. official (individual) engaged in higher education on deputation or lien outside Bangladesh

· within 3 months after return u/s 75(c)ii

company

by the 15 th day of July next following the income year or

before the expiry of six months from the end of income year (maximum 31 st December) if 15^th July falls before the expiry of six months

How to pay tax or file return if he is in abroad

u/s 75 b proviso -

In abroad any non resident Bangladeshi may file return and bank draft to nearest Bangladesh Mission . Mission will receive ,issue receipt with seal and send return to N B R

or, u/s 174 non resident may engage authorized representative (ex. relatives) /

Income Tax Practitioner

Non resident and resident Individual

2012-02-18T18:15:00.000-08:00

Today I shall discuss about resident and non resident individual taxpayer with examples and through problem and solution.

Who

In the case of Individual

Resident- u/s 2(55) of IT Odinance, 1984

If any person passes 182 days (Half of a year) Or more than 182 days in Bangladesh continuously or non- continuously

or,

if any person passes 90 days in a fiscal/ income year and 365 days in the previous 4 years continuously or not continuously in Bangladesh.

Non -Resident u/s 2(55) of I T O , 1984 -

If the assessee ( tax payer) – Bangladeshi or Non Bangladeshi

is continuously out of Bangladesh during the whole year
lives less than 182 days in a year
lives less than 90 days in a year and 365 days in previous 4 years

For example ,

if a Bangladeshi national lives in Australia for education , job for whole part of the year lives less than 182 days in a year or 90 days in a year and 365 days in previous 4 years he is a non resident Bangladeshi.

Again , if an Australian lives whole part of the year outside Bangladesh lives less than 182 days in a year or 90 days in a year and 365 days in previous 4 years he is a non resident non Bangladeshi.

Comment:

Thus a man may be resident in 2 different countries in the same year, although he can have only one domicile.

Problem :

if a person lives in 2011-12 fiscal year 200 days in Bangladesh and in previous 5 yrs. outside Bangladesh what will be his status

Ans.- Status- Resident u/s 55(a)i

Problem:

In 2011-12 fiscal year if a person lives 50 days and previous 4 years in Bangladesh and the rest of the time in abroad

Ans.- Status- non resident

Determination of resident & nonresident status for assessee other than individual

2012-02-18T17:52:00.000-08:00

ü To day I am going to discuss about the status of the taxpayer or assessee who are a group of people , not individual . Here I will give information about the way to determine their status.

In the case of (i) Hindu Undivided Family (HUF)

(ii) Partnership firm

(iii) Association of Persons (AOP)

determination of the place of its control and management of its affairs is necessary

§ if it is wholly outside Bangladesh it is non resident

§ if a part of it is outside Bangladesh it is resident

For example,

ABC is a HUF or partnership firm or AOP . Name of its karta or director is Mr. X . In Fiscal year 2010-11 he lives in Canada. But income of his AOP or Firm or HUF generated in Egypt . Other members/partners of firm ,HUF, AOP control and manage it from Bangladesh in his absence. Then ABC is a resident assesse (tax payer) in Bangladesh.

ü Control and management

· Significance

§ the controlling and directive power

§ situated implies the functioning of such power at a particular place performance.

· Place

§ The place of control may be different from the place where the actual trading (buying and selling) is carried on. Therefore, the place where trading activities or physical operations are carried on is not the place of control and management .

comment

If it is controlled from more than one country and also from Bangladesh then it is resident in those countries and Bangladesh.

· Right

§ Again, control means de facto control ( actually controlled by any member of AOP / HUF or partner of Firm in absence of responsible member or partner but whether justified or not ) not necessarily the right to control is verified at the time of assessment.

company-

Resident

two types

§ Bangladeshi company

§ foreign company

registered at Registrar of Joint Stock Companies of Bangladesh or not

Control and management

If the control and management of its affairs is situated fully in Bangladesh during the income year, it is resident company.

Significance

Here control means de facto control not merely de jure control. The control and management, the head and brain, does not reside .Where there is some ultimate power of control such as the power to alter the articles of associations by a special resolution or the power to interfere with fundamental finance.

Place

If it keeps house and does business in Bangladesh or

the central management and control actually abides in Bangladesh.

For example,

XYZ is a company not registered in Bangladesh. It sells and buys products in Sudan but it is controlled from Bangladesh. It is a resident assesse.

Solution of Intcome Tax for resident and non resident in Bangladesh

2012-02-16T22:53:00.000-08:00

Today I am going to discuss about necessity of determination of status of a taxpayer ( assesse) whether he is resident or non resident and the various category of taxpayer (assessee) in detail.

Why necessary

To pay or collect tax at first it is necessary to determine status of the assesse (tax payer) whether he is resident or non resident .

Not only the rate of tax but also category of income depends on residential status of assesse (tax payer) .

When necessary

to file return
To obtain tax clearance certificate / acknowledge receipt Without paying tax properly assessee (tax payer) will not get a clearance certificate. Tax clearance certificate required at the time of departure from Bangladesh u/ s 107 of I T O 1984

· taking facilities from many sectors of govt. authorities u/s 184 (A), as follows

1. opening letter of credit (L C)
2. submitting application for import registration certificate
3. renewal of trade license
4. submitting tender documents
5. submitting application for membership of a club registered under ‡Kv¤úvwb AvBb , 1994
6. registration , change of ownership, renewal of fitness of car, jeep, microbus or bus, truck, prime mover, lorry etc. plying for hire
7. sanction of loan exceeding 5 lakh taka by bank or leasing company
8. issue of credit card
9. registration of company in respect of sponsor ( initial) directors
10. applying for or renewal of membership of trade body
11. submitting a plan for construction of building for obtaining approval from Rajuk , CDA, KDA,RDA
12. applying for connection of gas/ electricity for commercial purpose in city corporation, pourashava, cantonment board

Kinds

1. Other than company / Individual / Firm–

a. Resident

b. Non Resident – Non Bangladeshi , Non Resident( N B N R)

c. Bangladeshi Non – Resident ( B N R)

2.Company -
a. Resident

b. Non Resident – Non Bangladeshi , Non Resident( N B N R)

c. Bangladeshi Non – Resident ( B N R)

ü (to be continued.....)

Acknowledgement

2012-02-16T22:33:00.000-08:00

Now - a- days it is a global world. None can run his life without money . A govt. also cannot run a state without revenue . Revenue is like blood that runs through the vein and supplies oxygen . So several types of legal arrangements are made to increase revenue collection. Snares are spread to suck revenue at every phase when income is generated. More or less in every country govt. establishes legal institution to detect tax evasion and avoidance . Income tax is a source of revenue. It is also known as direct tax . It helps to create social equality. So a responsible citizen should cooperate with govt. of the country where he earns to pay taxes.

Bangladesh is a country which was born in 1971 through hard struggle and sacrificing a lot of lives. It snatched away its crimson red sun after taking bath in a vast pool of blood. It is a matter of happiness that this country is now advancing to occupy its rightful place in the world. To keep pace with the modern world it has opened its market, signed treaties with many countries. As a result a lot of foreigners visit her for doing business, serving in multinational companies and in various sectors. Bangladeshies living in many countries send remittance and contribute to the economic development. In this democratic country Govt. is alert to change the total scenario and image of the country by earning more revenue and utilizing properly. This responsibility is assigned to Ministry of Finance of which N B R is a wing. National Board of Revenue (NBR) is a specialized organization who works for increasing revenue collection and finding out tax avoidance and evasion. For this necessary law and rules are existent namely Income Tax Ordinance, 1984 and Income Tax Rules. It is very necessary to know tit- bits of taxation in Bangladesh to save money. For example , a person may have paid tax in another country . When he comes in Bangladesh he has to pay tax again . But in some cases there is exception. If Bangladesh has tax treaty to avoid double taxation with that country that taxpayer may not pay tax again .In this respect, this blog will give you guideline . This will help the taxpayers / professionals to get all the relevant matters at a glance.

§ It is written with

· required information

· section ,rule and SRO

· necessary updates

· examples

· analytical description

It is free from any complexity. Eager persons are invited for open discussion. Ask me questions and get answers within a short time. Thanks.