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Some important Changes in Finance Act 2017-18

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Section 80: Statements of assets, liabilities and life style

(1) Every person, being an individual assessee, shall furnish statements in the forms and manners as prescribed in respect of the total assets, liabilities and expenses of the person or the spouse, minor children and dependents of the person as on the last date of the income year if the person- (a) has, in the last date of the income year, a gross wealth exceeding taka twenty lakh; or (b) owns a motor car; or (c) has made an investment in a house property or an apartment in the city corporation area: Provided that any person, being an individual assessee, who is not required to submit the statement mentioned in this subsection may voluntarily submit such statement.

Section 65: Computation of advance tax

The minimum amount of advance tax payable by an assessee in a financial year shall be the amount equal to the tax payable on his total income of the latest income year as assessed on regular basis or provisionally, as the case may be, as reduced by the amount of tax required to be deducted or collected at source in accordance with the preceding provisions of this Chapter.

Section 53E: Deduction or collection at source from commission, discount, fees

(2) Any company making a payment in relation to the promotion of the company or its goods to any person engaged in the distribution or marketing of the goods of the company shall, at the time of payment, deduct tax at the rate of one point five percent (1.5%) of the payment. New addition this year (3) 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%: previously it was 6%

Section 52R: Deduction of tax from receipts in respect of international phone call

(2A) Where any amount is paid or credited in respect of outgoing international calls, the provider of Interconnection Exchange (ICX) services or Access Network Services (ANS) shall deduct tax at the rate of seven point five percent (7.5%) on the whole amount so paid or credited at the time of such payment or credit.

Section 30: Salary & Allowance is not admissible

(aaaa) any payment made after the Tax Day by way of salary to an employee if the employee is required to file the return of income but fails to file the same on or before the Tax Day or obtain time extension, as the case may be.

Section 52 Sub-1(C): Tax Deduction for Supply of Imported Goods

Where any imported goods on which tax has been paid at source under section 53 is supplied, tax at source on the said supply shall be B-A, where- A= the amount of tax paid under section 53, B= the amount of tax applicable under this section if no tax were paid under section 53.

Section 2-(26) “dividend” includes– New addition in Finance ACT 2017

(ddd) any distribution of profit of a mutual fund or an alternative investment fund.

Corporate Tax filing

The year end of all local companies are set by NBR from July of any year to June of the subsequent year. The companies with year end on 30th June 2017, needs to file it's return by the 15th day of the subsequent 7th month. In this case, 15th January 2018.

Personal Tax filing date

30th November 2017

Transfer pricing

OECD-type transfer pricing provisions apply. The definition of "associate enterprise" extends beyond the shareholding or management relationship, as it includes some deeming clauses. A tax payer that engages in international transactions exceeding BDT 30 million is required to maintain documentation and provide a certificate (in a prescribed format) from a Chartered Accountant or a Cost and Management Accountant that sets out the details of a related party transaction, as well as the methods used to determine an arm's length price, provided a notice for filing is received from the National Board of Revenue.

Dividends paid to a non resident

Dividends paid to a non resident company are subject to a 20% withholding tax, unless the rate is reduced under a tax treaty.

Foreign tax credit

A resident entity may credit income tax paid on foreign source income against its Bangladesh tax liability with certain conditions. The amount of the credit is the lesser of the lesser of the income tax paid abroad or the Bangladesh tax payable on the foreign source income.

Foreign Investment in Bangladesh

Foreign participation for investment is allowed upto 100%, in all but a few restricted areas. The remittance of dividend is allowed by the Bangladesh Bank (Central Bank) provided and application is submitted.