Tax Structure in Bangladesh

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Tax Structure in Bangladesh
Friday, 20 February 2009 01:24 Rabiul Islam

A. Individual Tax:|
Individual Tax Structure|
Income Year 2005-2006 (Assessment Year 2006-2007)|
Income Slabs| Tax Rate|
On the first Tk 1,20,000 of total income| Nil|
On the next Tk 2,50,000 of total income| 10%|
On the next Tk 3,00,000 of total income| 15%|
On the next Tk 3,50,000 of total income| 20%|
On the balance of total income| 25%|
Non-Resident assessee| 25%|
Minimum Individual Tax| Tk 1,800|
Minimum Tax: Sponsor or shareholder director of a company| Tk. 3,600| Government Authority: National Board of Revenu|
B. Corporate Tax:|
Corporate Tax|
Company| New Rate AY 2006-07|
Publicly Traded Companies (other than Banks, Insurance & Financial Institutions):| -| Normal Tax Rate (paying Dividend 10% or more)| 30%|
Additional Tax if the declared dividend/bonus share is not declared or distributed at least 15% within 6 months of the following income year| 5% on undistributed profit| Companies declaring dividend less than 10%| 40%|

Rebate @ 10% on applicable tax in case where dividend is more than 20%| 10%| Banks, Insurances and Financial Institutions:| -|
Corporate Tax| 45%|
Excess Profit Tax (additional)-for banks only| 15% (on excess profit)| Companies Not Publicly Traded| 40%|
Textile Industries SRO 219/IT/2004, 13th July 2004| 15%|
Jute Industries SRO 218/IT/2004, 13th July 2004| 15%|
Industries set up between 1st July 2002 and 30th June 2005 and not applying for Tax Holiday. (This rate will continue for 5 years) SRO 177/IT/2002, 3rd July 2002| 20%| Government Authority: National Board of Revenue|

*** Income tax is levied on all companies and individuals for the previous year and payable for the year of assessment of fiscal year (July to June). If a company adopts an accounting period different from the fiscal year, the business period is a 12 month accounting period proceeding the year of assessment. Taxable income is calculated after adjusting for incurred expenses in the production of income.|  

C. Value Added Tax|
Corporate Tax|
Deduction of VAT at Source: The authority for deducting VAT at source has been given to the Government, Semi-Government, Autonomous Organizations, Non-Government Organization (NGOs), Bank, Insurance or Limited Company. The services on which deduction at source applicable are listed below:| Head #| Service Code #| Service Provider| Rate of Deduction (%)| S 003| S 003.10| Garage and workshop of motor car| 4.5%|  | S 003.20| Dockyard| 4.5%|

S 004| S 004.00| Construction Contactor/Sangstha| 4.5%| S 007| S 007.00| Advertisement Organization: Government, Semi-Government, Autonomous Body, Nationalized Bank and Insurance Sector| 4.5%|  |  | Private Organization, Non-Government Sangstha (NGO), Private Bank & Insurance, Limited Company, Any Sangstha or Person| 9%|  |  | Others| 15%|

S 008| S 008.10| Printing firm/organizations| 4.5%|
S 020| S 020.00| Survey Sangstha| 15%|
S 032| S 032.00| Consultancy and Supervisory Firm| 4.5%| S 033| S 033.00| Lessee| 15%|
S 034| S 034.00| Audit and Accounting Firm| 4.5%|
S 037| S 037.00| Procurement Service Provider| 2.25%|
S 048| S 048.00| Transport Contactor:|  |
 |  | For carrying Petrol and Petroleum goods| 2.25%|  |  | Others| 4.5%|
S 049| S 049.00| Transport rent provided| 4.5%|
S 053| S 053.00| Participants of Board Meeting| 15%|
S 060| S 060.00| Buyer of Auction Goods| 1.5%|
S 065| S 065.00| House clearing and maintenance organization| 2.25%| S 066| S 066.00| Lottery ticket seller| 15%|
D. Gift Tax:|
Amount| Rate|
On the first Tk. 5,00,000 of the value of all taxable gifts| 5%| On the next Tk. 10,00,000 of the value of all taxable gifts| 10%| On the next Tk. 20,00,000 of the value of all taxable gifts| 15%| On the...
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