AccfintaX

Charge of tax on the difference of investment, import and export made (Ins. new section 16H)

By the new section of 16H, if any difference on the submitted claimed investment, import or export statement, have been found by the assessing officer at the time of scrutiny/assessment, 50% of income tax has been charged on the difference between actual and disclosed of investment, import and export amount.

Rebate in personal income tax

If any individual assessee submits income tax return for the first time and submits through online, he or she is allowed to avail an additional income tax rebate of BDT 2,000.

Section 53DDD Deduction of tax at source from export cash subsidy-

Any person responsible for paying any amount on account of export cash subsidy to an exporter for promotion of export shall, at the time of payment or credit of such amount, deduct or collect tax in advance at the rate of (ten) percent on the amount so payable.

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 forty lakh; or (b) owns a motor car; or (c) has made an investment in 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 sub-section 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%:

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 30B: Treatment of disallowances- New Section 30B by F. A 2019

Notwithstanding anything contained in section 82C or any loss or profit computed under the head "Income from business or profession", the amount of disallowances made under section 30 shall be treated separately as "Income from business or profession" and the tax shall be payable thereon at the regular rate.

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

Where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the said supply shall be B-A, where- A= the amount of tax paid under section 53E, B= the amount of tax applicable under this section if no tax were paid under section 53E. Provided that in case of the goods supplied by any distributor or any other person under a contract as referred in sub-section (3) of section 53E, the term "B" as mentioned in paragraph (d) shall be computed as follows: B= {the selling price of the company to the distributor or the other person as referred in section 53E (3)} x 7% x 5%.

Section 2-(26) “dividend” includes–

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

Corporate Tax filing

The year-end of all local companies is set by NBR from July of any year to June of the subsequent year. The companies with year-end on 30th June 2020, needs to file its return by the 15th day of the subsequent 7th month. In this case, 15th January 2021.

Personal Tax filing date

30th November 2020 First 300,000 @ 0% Next 100,000 @ 5% Next 300,000 @ 10% Next 400,000 @ 15% Next 500,000 @ 20% Remaining amount @ 25%

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.

Overseas traveling allowance limit

Any expenditure by way of overseas traveling exceeding 0.50% of the disclosed turnover, will be disallowed in case of computing the business income. Earlier the limit was 1.25% of the disclosed turnover.

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.

Capital gains from the transfer of business or undertaking

The tax shall be payable by an assessee on “capital gains from the transfer of business or undertaking” in respect of any profits and gains arising from the transfer of business or undertaking in its entirety with all of its assets and liabilities and such profits and gains shall be deemed to be the income of the assessee in respect of the income year during which the transfer takes place.