Tax(Case Report-on-Income-Tax-Authorities-in-Bangladesh)

ASSIGNMENT on Assets Tax Authorities in Bangladesh [pic] National Board of Acquirement – NBR Rajashwa Bhaban Segunbagicha, Dhaka Telephone: +88 02 933-3444. http://www. nbr-bd. org National Board of Acquirement (NBR), Bangladesh. Page 2 of 31 Table of contents: |Serial |Topic |Page No. | |I |Cover |…….......... 01 | | |Page...................................................................................... | | | |. | |II |Topic/Source of the ASSIGNMENT.................................................. |.................. 02| |III |Table of |.................. 03| | |contents.............................................................................. | | |01 |Letter of |.................. 04| | |Transmittal.......................................................................... | |02 |Acknowledgement ……………………………………………………… |.................. 05| |03 |Background of |.................. 06| | |NBR.......................................................................... | | |04 |Taxation and its |.................. 07| | |history..................................................................... | |05 |Tax Authorities of Bangladesh ……………………………................. |……………10 | |06 |Types of Assets ………………………………………………………... |……………12 | |07 |Classification of Tax systems........................................................... |……………13 | |08 |Types of |……………14 | | |Taxation............................................................................. | |09 |Methodology …………………………………..................................... |……………15 | | |9. 01 Sources of Income………………………………………………... |……………15 | | |9. 02 Tax Rate…………………………………………………………… |……………16 | | |9. 03 Tax Abatement for beforehand ………………………………………. |……………16 | | |9. 04 Who should abide Assets Tax Return? ................................. ……………17 | | |9. 05 Time to abide Assets Tax Acknowledgment …………………………...... |……………18 | | |9. 06 Appraisal Procedure ………………………………………….. |……………19 | | |9. 07 Tax denial functions ……………………………………….. |……………19 | | |9. 08 Aloft areas for final adjustment of tax accountability …………………. |……………22 | | |9. 09 Budgetary incentives ………………………………………………….. |……………23 | | |9. 10 Abstention of Bifold Taxation Agreement ……………………. ……………24 | |10 |Steps for accession Assets Tax in Bangladesh................................ |……………24 | |11 |Procedure of Appraisal ……………………………………….......... |……………25 | |12 |Problems for accession Assets Tax.................................................. |……………26 | |13 |Conclusion................................................................................ |……………31 | | |........ | | National Board of Acquirement (NBR), Bangladesh. Page 3 of 31 Letter of Transmittal March 03, 2012 To Md. Abdul Awal Chairman, EECS deparment NorthSouth University Basundhara Campus, Dhaka. Subject: Submission of Assignment on “Income Tax Authorities in Bangladesh”. Dear Sir I am admiring to abide this Assignment-report on “Income Tax Authorities in Bangladesh”. This analysis diplomacy was taken by the advice of “Three tax arrangement of Bangladesh”, accounting by M. A. Akkas, and “Income Tax” accounting by “Mr. Mahmud” and “Purohit Bhattacharjee”. Here is the address on the empiric abstraction of “Income Tax ascendancy in Bangladesh”. We candidly accept that this address will accomplish the requirements of the case report, which will advice us a lot to accretion acceptable adeptness about the “Income Tax ascendancy in Bangladesh” Sincerely, Deb kumar Roy ID:0910019040 National Board of Acquirement (NBR), Bangladesh. Page 4 of 31 Accepting I am actual abundant beholden to the God first, who has accustomed me all the adeptness to accomplish this chore. At aftermost but not the least, I am beholden to my ever-respected parents those who consistently accord us brainy abutment and able-bodied wishes. National Board of Acquirement (NBR), Bangladesh. Page 5 of 31 Background of NBR The National Board of Acquirement (NBR) is the axial ascendancy for tax administering inBangladesh. ItwasestablishedbyPresident'sOrderNo. 76of1972. Administratively, it is beneath the Centralized Assets Analysis (IRD) of the Ministry of Accounts (MoF). MoF has 3 Divisions, headed by 3 abiding Secretaries to the Government, namely, the Accounts Analysis the Centralized Assets Analysis (IRD) and the Bread-and-butter Relations Analysis (ERD). The Secretary, IRD is the ex-officio Chairman of NBR. NBR is amenable for conception and connected re-appraisal of tax-policies and tax-laws, negotiating tax treaties with adopted governments and accommodating in inter-ministerial deliberations on bread-and-butter issues accepting a address on budgetary behavior and tax administration. The capital albatross of NBR is to aggregate calm acquirement (primarily, Acceptation Duties and Taxes, VAT and Assets Tax) for the government. Another responsibilities accommodate administering of all diplomacy accompanying to taxes, duties and another tax address fees. Under the all-embracing ascendancy of IRD, NBR administers the Excise, VAT, Community and Income-Tax casework consisting of 3434 admiral of assorted grades and 10195 acknowledging agents positions (Approved set up as on 09 Feb. , 2000 AD). Negotiating tax treaties with adopted governments and accommodating in inter- apostolic deliberations on bread-and-butter issues accepting a address on budgetary behavior and tax administering are additionally NBR's responsibilities. The capital albatross of NBR is to activate calm assets through accumulating of acceptation duties and taxes, VAT and assets tax for the government. Side by ancillary with accumulating of taxes, abetment of all-embracing barter through quick approval of acceptation and consign cargoes has additionally emerged as a key role of NBR. Another responsibilities accommodate administering of diplomacy accompanying to taxes, duties and another acquirement accompanying fees/charges and blockage of smuggling. Beneath the all-embracing ascendancy of IRD, NBR administers the excise, VAT, community and income-tax casework consisting of 3434 admiral of assorted grades and 10195 acknowledging agents positions. National Board of Acquirement (NBR), Bangladesh. Page 6 of 31 Taxation and its history Taxation- one of the aloft sources of accessible acquirement to accommodated a country's acquirement and development expenditures with a appearance to accomplishing some bread-and-butter and socialobjectives,suchasredistributionofincome,pricestabilizationand black adverse consumption. It supplements another sources of accessible accounts such as arising of bill addendum and coins, charging for accessible appurtenances and casework and borrowings. The appellation “Tax” has been acquired from the French chat “Taxe” and etymologically, the Latin chat “Taxare” is accompanying to the appellation 'tax', which bureau 'to charge'. Tax is 'a addition exacted by the state'. It is a non-penal but compulsatory and barren alteration of assets from the clandestine to the accessible sector, levied based on agreed criteria. According to Commodity 152(1) of the Constitution of Bangladesh, taxation includes the artifice of any tax, rate, assignment or impost, whether general, bounded or special, and tax shall be construed accordingly. Bulk is a bounded tax imposed by bounded government on its association or the acreage owners of the locality, a assignment is a tax levied on a commodity, and an appraisal is a tax imposed for an access into a country. Under the accouterment of commodity 83 of the Constitution, "no tax shall be levied or calm except by or beneath the ascendancy of an Act of Parliament". Bangladesh affiliated a arrangement of taxation from its accomplished British and Pakistani rulers. The system, however, developed based on about accustomed canons and there had been efforts appear acumen the tax administering for optimizing acquirement collection, abbreviation tax artifice and preventing acquirement arising through arrangement loss. Taxes accommodate narcotics assignment (collected by the Administering of Narcotics Control, Ministry of Home Affairs), acreage acquirement (administered by the Ministry of Acreage and calm at bounded Tahsil offices numbered on average, one in every two Union Parishads), non-judicial brand (collected beneath the Ministry of Finance), allotment fee (collected by the Allotment Directorate of the Ministry of Law, Amends and Parliamentary Affairs) and motor abettor tax (collected beneath the Ministry of Communication). National Board of Acquirement (NBR), Bangladesh. Page 7 of 31 The tax anatomy in the country consists of both complete (income tax, allowance tax, acreage development tax, non-judicial stamp, registration, adamant acreage tax, etc) and aberrant (customs duty, community duty, motor abettor tax, narcotics and liquor duty, VAT, SD, adopted biking tax, TT, electricity duty, advertisement tax, etc) taxes. The present acreage acquirement arrangement of Bangladesh has its abject in the East Bengal accompaniment accretion and ascendancy act 1950 which accustomed a complete arrangement amid the aborigine and the government. The best important tax on the bulk of transferred acreage is the non-judicial brand tax (levied beneath the Brand Act 1899), which has been in actuality aback January 1899. Current ante of non-judicial brand assignment are provided in the Aboriginal Schedule of the Accounts Act 1998, alignment from Tk. 4 to Tk. 10,000 in case of complete rate, or from 0. 07% to 1. 5% of the bulk of application in case of ad valorem rate. The authoritative brand tax is actuality levied beneath the Cloister Fees Act 1870, although the accountability of cloister fees originated in the addition of the Bengal Regulation No. 8 of 1795. The aboriginal sales tax was alien in the aloft Axial Provinces of India in 1938. In Bengal, sales tax was adopted in 1941. In 1948, sales tax was transferred as a axial tax beneath the Accustomed Sales Tax Act of 1948. The Sales Tax Act 1951 came into force on 1 July 1951 by repealing the Pakistan Accustomed Sales Tax Act of 1948. Until 1982, sales tax was actuality calm beneath the 1951 Act, which was replaced by the Sales Tax Ordinance 1982. The VAT law was promulgated by repealing the Business. Income tax was aboriginal alien in the subcontinent by the British in 1860 to accomplish up the acquirement arrears acquired by the sepoy revolt, 1857. Afterwards adeptness of Bangladesh, assets tax was fabricated able beneath the Assets Tax Act 1922 anesthetized on the base of the recommendations of the All-India Assets Tax Committee appointed in 1921. Currently, assets tax has been imposed beneath the Assets Tax Ordinance 1984 (ITO) promulgated on the base of recommendations of the Final Address of the Taxation Enquiry Bureau submitted in April 1979. Income taxpayers (assesses) are classified as individuals, affiliation firms, Hindu absorbed National Board of Acquirement (NBR), Bangladesh. Page 8of 31 families (HUF), associations of bodies (AOP), companies (publicly traded and private), bounded authorities, and another bogus argumentative persons. Tax ante and ambit of taxable assets alter based on residential cachet of an assesses (resident or non- resident). From budgetary or appraisal year, (AY) 2000-01, there is a filing beginning of anniversary absolute assets of Tk. 00,000 applicative for individuals (including non-resident Bangladeshis), affiliation firms, HUF, AOP and assesses another than companies and bounded authorities. In case an character of this accumulation has a absolute anniversary assets beneath than this level, he is not appropriate to abide tax acknowledgment but if someone's assets is higher, he is to pay a minimum tax of Tk. 1,000. Bangladesh affiliated a arrangement of taxation from its accomplished British and Pakistani rulers. National Board of Acquirement (NBR), Bangladesh. Page 9 of 31 Tax Authorities of Bangladesh ? There are 3-divisions beneath the Ministry of Accounts (MOF) and Secretary leads anniversary division. ? |The Chairman of NBR (National Board of Revenue) is alive |under Centralized | | |Resource Analysis (IRD). | | | | | | | | | | |? |NBR is the acme anatomy of the Tax Administration. | | It consists of two parts: (1) Community & VAT (2) Assets Tax. Both are beneath the aforementioned authority. There are 4-members beneath NBR. ? Beneath the NBR, a Commissioner of Taxes is the arch of the administering and he is in allegation of a taxes Zone. There are 8-Zones in Bangladesh. National Board of Acquirement (NBR), Bangladesh. Page 10 of 31 [pic] National Board of Acquirement (NBR), Bangladesh. Page 11 of 31 Types of Assets Assets Assessable IncomeNon-Assessable Assets Taxable Assets Non-taxable Assets Income: Assets bureau annihilation accustomed in banknote or in affectionate unless exempted by laws. 1) Assessable Income: Assessable Incomes are those incomes, which are included in the assurance of absolute assets of a taxpayer. ) Taxable Income: Taxable Incomes are those incomes that the tax is to be paid on those incomes. b) Non- Taxable Income: Non – taxable assets is taken into absolute assets for taxation bulk purpose but no tax is to be paid on this allotment of income. 2) Non- Assessable Income: Non- assessable incomes are those incomes which are not included in the assurance of absolute assets of a taxpayer. National Board of Acquirement (NBR), Bangladesh. Page 12 of 31 Classification of Tax systems Classification of Tax Arrangement Single Tax Multiple Taxes 1. Single Tax: Alone one tax for everybody. Single tax is the poll tax or the arch tax or boyish tax, which is imposed on a actuality artlessly because he is there in the society. 2. Multiple Taxes:A arrangement beneath which altered types of taxes shall be levied by the govt. according to suitability. Ex. Assets Tax, VAT. National Board of Acquirement (NBR), Bangladesh. Page 13 of 31 Types of Taxation Types of Taxation a) Complete Tax b) Aberrant Tax a) Accelerating Tax b) Astern Tax c) Proportional Tax a) Complete Tax: Complete tax is a array of tax the appulse of aftereffect incidents and which abatement aback on the actuality on whom it is imposed. . e. : Assets Tax, Marriage Tax etc. b) Aberrant Tax: Aberrant taxes are those accountability of which can be anesthetized on others through bulk vehicles. c) Accelerating Tax: The tax bulk increases as the taxable income/amount increases. d) Astern tax: The adverse of a accelerating tax is a astern tax breadth the tax bulk decreases as the taxable income/amount increases. e) Proportional Tax: In amid is a proportional tax, breadth tax is anchored as the bulk to which the bulk is activated increases. National Board of Acquirement (NBR), Bangladesh. Page 14 of 31 Methodology Among complete taxes, assets tax is one of the capital sources of revenue. It is a accelerating tax system. Assets tax is imposed on the base of adeptness to pay. The added a aborigine earns the added he should pay''- is the basal assumption of charging assets tax. It aims at ensuring disinterestedness and amusing justice. Sources of Income: For the purpose of ciphering of absolute assets and charging tax thereon, sources of assets can be classified into 7 categories, which are as follows: •Salaries •Interest on balance •Income from abode acreage •Income from agronomics •Income from business or profession Capital assets •Income from another sources. Tax Bulk (Assessment Year- 2008-09): Another than Company: For individuals another than changeable taxpayers, chief taxpayers of 70 years and aloft and backward taxpayers, tax payable for the |First |1,65,000/- |Nil | |Next |2,75,000/- |10% | |Next |3,25,000/- |15% | |Next |3,75,000/- |20% | |Rest Bulk | |25% | For changeable taxpayers, chief taxpayers of age 70 years and aloft and backward taxpayers, tax payable for the |First |1,80,000/- |Nil | |Next |2,75,000/- |10% | |Next |3,25,000/- |15% | National Board of Acquirement (NBR), Bangladesh. Page 15 of 31 |Next |3,75,000/- |20% | |Rest Bulk | |25% | Minimum tax for any alone assesses is Tk. 2,000 Non-resident Individual25% (other than non-resident Bangladeshi) For Companies About Traded Company27. 5% Non-publicly Traded Company37. 5% Bank, Allowance & Financial Aggregation 45% Adaptable Buzz Operator Company45% If any about traded aggregation declares added than 20% dividend, 10% abatement on absolute tax is allowed. Tax Abatement for investment: Bulk of Rebate: Bulk of acceptable beforehand is either up to 25% of absolute assets or Tk. 5,00,000/- whichever is less. Tax abatement amounts to 10% of acceptable investment. Types of beforehand able for the tax abatement are: •Life allowance exceptional •Contribution to deferred accomplishment •Contribution to Provident Fund to which Provident Fund Act, 1925 applies •Self addition and employer's addition to Recognized Provident Fund •Contribution to Super Annuation Fund •Investment in accustomed agreement or agreement stock, Stocks or Shares •Contribution to drop alimony arrangement •Contribution to Benevolent Fund and Accumulation Allowance exceptional •Contribution to Zakat Fund Donation to accommodating hospital accustomed by National Board of Acquirement •Donationtophilanthropicoreducationalinstitutionapprovedbythe Government •Donation to socioeconomic or cultural development academy accustomed in Bangladesh by Aga Khan Development Network National Board of Acquirement (NBR), Bangladesh. Page 16 of 31 Who should abide Assets Tax Return? •If absolute assets of any alone another than changeable taxpayers, chief taxpayers of 70 years and aloft and backward taxpayers during the assets year exceeds Tk 1,65,000/-. If absolute assets of any changeable taxpayer, chief aborigine of 70 years and aloft and backward aborigine during the assets year exceeds Tk 1,80,000/-. •If any actuality was adjourned for tax during any of the 3 years anon above-mentioned the assets year. •A actuality who lives in any burghal corporation/paurashava/divisional HQ/district HQ and owns a architecture of added than one storey and accepting plinth breadth beyond 1,600 sq. feet/owns motor car/owns associates of a club registered beneath VAT Law. •If any actuality subscribes a telephone. If any actuality runs a business or profession accepting barter license. •Any able registered as doctor, lawyer, assets tax practitioner, Chartered Accountant, Bulk & Management Accountant, Engineer, Architect and Architect etc. •Member of a Chamber of Commerce and Industries or a barter Association. •Any actuality who participates in a tender. •A actuality who has a Taxpayer's Identification Cardinal (TIN). •Candidate for Union Parishad, Paurashava, Burghal Corporation or Parliament. Time to Abide Assets Tax Return: For Company By fifteenth day of July abutting afterward the assets year or, breadth the fifteenth day of July avalanche afore the accomplishment of six months from the end of the assets year, afore the accomplishment of such six months. For Another than Aggregation Unless the date is extended, by the Thirtieth day of September abutting afterward the assets year. Consequences of Non-Submission of Acknowledgment •imposition of amends amounting to 10% of tax on aftermost adjourned assets accountable to a minimum of Tk. 1,000/- •In case of a continuing absence a added amends of Tk. 50/- for every day of delay. National Board of Acquirement (NBR), Bangladesh. Page 17 of 31 Appraisal Procedures: •For a acknowledgment submitted beneath accustomed scheme, appraisal is fabricated afterwards hearing. •For allotment submitted beneath Universal Cocky Appraisal Scheme, the accepting blooper is bent to be an appraisal order. Universal Cocky Appraisal is of beforehand accountable to audit. Address adjoin the adjustment of DCT: A aborigine can book an address adjoin DCT's adjustment to the Commissioner (Appeals)/Additional or Joint Commissioner of Taxes (Appeals) and to the Taxes Appellate Tribunal adjoin an Address order. Tax denial functions: In Bangladesh denial taxes are usually termed as Tax answer and calm at source. Beneath this arrangement both clandestine and accessible apprenticed companies or any another alignment defined by law are accurately accustomed and apprenticed to abstain taxes at some point of authoritative acquittal and drop the aforementioned to the Government Exchequer. The aborigine receives a affidavit from the denial ascendancy and gets credits of tax adjoin adjourned tax on the base of such certificate. Heads of Assets Accountable to answer or accumulating of assets tax at antecedent with defined ante of deduction. |No. Heads |Section/Rule |Rate |Chalan in the | | | | | |name of | |1 |Salaries | | |Respective | | | |Section 50 |deduction at boilerplate bulk |Zone | |2 |Discount on the absolute bulk of | |deduction at accustomed bulk or best bulk |LTU | | |Bangladesh Coffer Bills |Section 50A |whichever is greater. | |3 |Interest on balance |Section 51 |10%on absorption or abatement |LTU | |4 |Supply of appurtenances and beheading of | |nil up to 1 lac, 1-5 lacs |Zone-2 (Partly) &| | |contracts and sub-contracts |Section |(1%), 5-15 lacs (2. 5%), 15- |LTU | | | |52(Rule 16) |25 lacs 3. 5% and 25 lacs and aloft | | | | | |(4%) | | National Board of Acquirement (NBR), Bangladesh. Page 18 of 31 |5 |Indenting bureau / Aircraft | |3. 5% of the absolute cancellation of indenting |Zone-2 | | |agency bureau |Section 52 (Rule 17) |commission & 5% of absolute Aircraft bureau | | | | |commission cancellation | | |6 |Royalty, Fees for able or | | |Zone-8 | | |technical casework |Section 52 A |10% of the fees | | |7 |Stevedoring bureau & Security |Section 52 | |Ctg. Zone- | | |service |AA |7. 5% of the fees |2 | |8 |C & F bureau bureau |Section 52 | |Zone-2 | | | |AAA |7. 5% of the fees | | |9 |Sale of bandrolls ( for biri) | | |Respective | | | |Section 52B |6% of the bulk of bandrolls. Area | |10 |Compensation for accretion of | |6% of the advantage money |Zone-2 | | |property |Section 52C | | | |11 |Interest on extenuative instruments | |10% of the bulk of absorption (Current |Zone-2 | | | |Section 52D |rate) | | |12 |Collection of tax from brick | |1 Sec. = Tk. 10,000/ for anniversary brick field. |Respective | | |manufacturers | |1. 5 Sec. = Tk. 2,000/ for anniversary brick |Zone | | | | |field. | | | | |Section 52F |2 Sec. = Tk. 18,000/ for anniversary | | | | | |brick field. | | |13 |Commission on Letter of | |5% of the bulk of commission. |LTU | | |Credits |Section 52I | | | |14 |Issuing & Face-lifting of barter | Tk 500/- For face-lifting of anniversary |Zone-3 | | |licence |Section 52K |Lincence | | |15 |Trustee fees |Section 52L |10% | | |16 |Frieght Advanced bureau | | | | | |Com. |Section 52M |7. 5% | | |17 |Rental ability |Section 52N |4% | | |18 |Import of appurtenances |Section 53 (Rule17A) | |Zone-2 | | | | |3% of the bulk of imports. | |19 |Income from abode acreage (house | |No answer if anniversary hire is beneath |Zone-2 | | |rent) | |20,000/- |Dha & Another | | | |Section 53A (Rule17B)|3% (if anniversary hire is |outside | | | | |20,000-40,000 Tk. ) and |Zone | | | | |5% (if anniversary hire is aloft | | | | | |40,000 Tk. | | |20 |Shipping business of aborigine | | |Zone-2,ctg | | | |Section 53AA |5% of bales | | |21 |Export of manpower |Section 53B (Rule | |Zone-2, dhk & ctg| | | |17C) |10% of the anniversary charges. | | |22 |Export of Knitwear |Section 53BB |0. 25% |Zone-5 | |23 |Member of Banal |Section | |Zone-7 | | |Exchange |53BBB |0. 015% | | |24 |Export of appurtenances except |Section |0. 25% |Zone-5 | National Board of Acquirement (NBR), Bangladesh. Page 19 of 31 |Knitweare & Woven apparel |53BBBB | | | |25 |Sale of appurtenances by accessible bargain |Section 53C (Rule | |Zone-2 | | | |17D) |5% of the auction bulk | | |26 |Courier Anniversary (Non- resident) | | |Zone-6 | | | |Section 53CC |7. 5% | | |27 |Payment to blur actors and actresses| |5% of the bulk paid beyond |Zone-2 | | | |Section 53D (Rule |Tk. 6000/- | | | | |17E) | | | |28 |Cash subsidy |Section 53DD |5% |Zone-5 | |29 |Commission Fees or abatement paid to| | |Zone-2 & LTU | | |distributors |Section 53E (Rule |7. 5% of the bulk of commission. | | | | |17G) | | | |30 |Commission or accuse paid to the | | |Dhk. Zone- | | |agents of adopted buyers | | |6, | | | | | |Ctg. Zone-3 and | | | | |4 % on the bulk of bureau or charges. |Zone of | | | |Section 53EE | |Respective | | | | | |Division | |31 |Interest on coffer deposits |Section 53F (Rule |10% of the bulk of interest. |Zone-1 | | | |17H) | | | |32 |Real Estate & Developers | |In case of Bldg. 250 per sq. eter |Zone-5 | | | | |In case of acreage 5% of accomplishment bulk | | | | |Section 53FF | | | |33 |Insurance bureau | |3% on the bulk of bureau |LTU | | | |Section 53G | | | |34 |Commission paid to the Surveyors of | | |Dhk. Zone- | | |General Insurances | | |2, | | | | | |Ctg. Zone-3 and | | | | |7. 5% on the bulk of commission. Area | | | |Section 53GG | |of | | | | | |Respective | | | | | |Division | |35 |Transfer of acreage |Section 53H (Rule |5% of the bulk of the property. |Survey | | | |17I) | |Zone | | |Interest on Post Office | |No answer if the bulk of absorption does|Zone-2 | | |Savings Coffer Anniversary | |not exceeds Tk. 1,50,000 and if exceeds | | | | |Section 53I |then 10% on the bulk of absorption . | | |36 |Rent of abandoned land, bulb and | No answer if anniversary hire is beneath |Zone-2 | | |machinery | |15,000/- | | | | |Section 53J (Rule |3% (if anniversary hire is | | | | |17BB) |15,000 -30,000 Tk. ) and | | | | | |5% (if anniversary hire is aloft | | | | | |30,000 Tk. ) | | National Board of Acquirement (NBR), Bangladesh. Page 20 of 31 |37 |Advertising bill of anniversary paper, | | |Zone-5 | | |magazine, clandestine television | |3% of the bulk of the property. | | |channel |Section 53K | | | |38 |Dividend | | |LTU (only LTU’s | | | | |(1) Aborigine alone 10%, non-resident |files) all others| | | |Section 54 |individual 25% (2) Aggregation 15% |Zone-2 | |39 |Income from action |Section 55 |20% of the bulk won. |Zone-2 | |40 |Income of non-resident Another than | |Company - bulk applicative to the com. Other|Zone-6 | | |non- aborigine Bangladeshi} |Section 56 |than aggregation - best rate. | | Aloft areas for final adjustment of tax liability: Tax deducted at antecedent for the afterward cases is advised as final acquittal of tax liabilities. No added tax is answerable or acquittance is accustomed in the afterward cases:- •Supply or arrangement assignment •Band rolls of duke fabricated cigarettes •Import of appurtenances •Transfer of backdrop •Export of manpower •Real Estate Business •Export bulk of apparel •Local aircraft business •Royalty, abstruse ability fee •Insurance abettor commission. •Auction acquirement •Payment on anniversary of analysis by architect of a accustomed allowance aggregation •Clearing & forwarding bureau commission. •Transaction by a affiliate of a Banal Exchange. •Courier business •Export banknote subsidy Tax Recovery System: In case of non-payment of assets tax address the afterward measures can be taken adjoin a aborigine for ability of tax:- •Imposition of amends •Attachment of coffer accounts, bacon or any another payment. •Filing of Affidavit case to the Appropriate Magistrate. National Board of Acquirement (NBR), Bangladesh. Page 21 of 31 Beforehand Acquittal of Tax: Every aborigine is appropriate to pay beforehand tax in four according installments falling on 15th September; 15th December; 15th March and 15th June of anniversary year if the latest adjourned assets exceeds Taka three lakh. Amends is imposed for absence in acquittal of any chapter of beforehand tax. Budgetary incentives : Afterward are budgetary incentives accessible to a taxpayer: )Tax holiday: Tax anniversary is accustomed for automated undertaking, day-tripper industry and concrete basement ability accustomed amid 1st July 2008 to 30th June 2011 in accomplishment of assertive conditions. Automated Adventure Eligible for Tax holiday: (i)An industry affianced in assembly of textile, bolt machinery, jute goods, aerial bulk garments, pharmaceuticals, melamine, artificial products, ceramics, germ-free ware, animate from adamant ore, MS Rod, CI Sheet, fertilizer, insecticide & pesticide, computer hardware, petro-chemicals, agronomics machinery, boilers, compressors, basal raw abstracts of drugs, chemicals and pharmaceuticals. (ii)An industry affianced in agro-processing, address building, design cutting. Concrete Basement Eligible for Tax holiday: Sea or river port, alembic terminals, centralized alembic depot, alembic bales station, LNG terminal and manual line, CNG terminal and manual line, gas aqueduct line, flyover, address rail, underground rail, telecommunication another than adaptable phone, ample baptize analysis bulb & accumulation through aqueduct line, decay analysis plant, solar activity plant, consign processing zone. Tourism Industry Eligible for Tax holiday: Residential auberge accepting ability of three brilliant or more. b)Accelerated depreciation: Accelerated abrasion on bulk of accouterment is acceptable for new automated adventure in the aboriginal year of bartering assembly 50%, in the additional year 30% and in the third year 20%. )Income acquired from any Small and Medium Enterprise (SME) affianced in assembly of any appurtenances and accepting an anniversary about-face of not added than taka twenty four lakh is absolved from tax. d)Industry set up in EPZ is absolved from tax for a aeon of 10 years from the date of admission of bartering production. e)Income from fishery, poultry, beasts breeding, dairy farming, horticulture, floriculture, augment agronomics and sericulture are absolved from tax up to 30th June, 2011, accountable to advance at atomic 10% of the exempted assets that exceeds one lakh Taka, in government bonds. National Board of Acquirement (NBR), Bangladesh. Page 22 of 31 f)Income acquired from consign of handicrafts is exempted from tax up to 30th June, 2011. )An bulk according to 50% of the assets acquired from consign business is exempted from tax. h)Listed companies are advantaged to 10% tax abatement if they declaredividend of 20% or more. i)Income from Information Technology Enabled Casework (ITES) business is exempted up to 30th June, 2011. Abstention of Bifold Taxation Agreement: There are agreements on abstention of bifold taxation amid Bangladesh and 28 countries which are:- (01) United Kingdom of Great Britain and Northern Ireland (02) Singapore (03) Sweden (04) Republic of Korea (05) Canada (06) Pakistan (07) Romania (08) Sri Lanka (09) France (10) Malaysia (11) Japan (12) India (13) Germany 14) The Netherlands (15) Italy (16) Denmark (17) China (18) Belgium (19) Thailand (20) Poland (21) Philippines (22) Vietnam (23) Turkey (24) Norway (25) USA (26) Indonesia (27) Switzerland (28) Oman. National Board of Acquirement (NBR), Bangladesh. Page 23 of 31 Accomplish for accession Assets Tax in Bangladesh Submission of assets tax allotment is about due by: > 30th September in case of non-companies and > 31st December in case of companies. Appraisal is fabricated in several procedures. They are: ? Cocky appraisal ? Presumptive appraisal ? Spot appraisal ? Pre-audit based assessment. However, assertive percent of cocky appraisal cases are alleged for audit. Assesses can adopt address if afflicted by his assessment. There are three primary forums for appeal. They are to the Appellate Commissioner/Additional Commissioner/Joint Commissioner or to the Bureau for reviews. The decisions of Appellate Commissioner/Additional Commissioner/Joint Commissioner can be challenged to the abutting Appellate Cloister alleged as Appellate Tribunal. Denial tax is accountability able on a cardinal of items including contractors, imports, alteration of burghal land/building, coffer deposits etc. National Board of Acquirement (NBR), Bangladesh. Page 24 of 31 Procedure of Appraisal About the followings accomplish are followed in case of Appraisal of the Company and the Corporation: Step-1 Ciphering of Business Assets Step-2 Ciphering of Absolute Assets Step-3 Assurance of Absolute Tax Liabilities Step-4 Assurance of Net Tax Liabilities According to Sections 28, 29 and 30 of ITO, 1984 Assets from business is to be affected afterwards because acceptable and exceptionable costs to this end. Absolute Assets of the Aggregation is to be affected by abacus another assets with assets from business. Absolute Tax liabilities are to be chargeless by applying assigned tax rate. Net Tax accountability is to be absolute by deducting the afterward tax abatement from Absolute Tax liabilities: >10% Tax abatement on adopted assets Tax abatement on added assembly in case of automated company, if applicable. >Tax abatement on consign assets (at bulk applicable) >Tax abatement and boilerplate bulk on tax chargeless income. National Board of Acquirement (NBR), Bangladesh. Page 25 of 31 Problems for accession Assets Tax Tax abstention is one of the capital problems for accession Assets Tax by the Assets Tax Ascendancy in Bangladesh. It is the acknowledged appliance of the tax administering to one's own advantage, in adjustment to abate the bulk of tax that is payable by bureau that are aural the law. By adverse tax artifice is the accustomed appellation for efforts to not pay taxes by actionable means. The appellation tax acknowledgment is a analogue for tax avoidance. Its aboriginal use was by tax admiral as an another to the debasing appellation of tax avoidance. Latterly the appellation has additionally been acclimated in the tax regulations of some jurisdictions to analyze tax abstention advancing by the assembly from tax abstention which exploits loopholes in the law. Based on these concepts arises the pillars of Tax Protesters as able-bodied as Tax Resistance: Some of those attempting not to pay tax accept that they accept baldheaded interpretations of the law that appearance that they are not accountable to actuality taxed: these individuals and groups are sometimes alleged tax protesters. An bootless tax protestor has been attempting aboveboard to balk tax, while a acknowledged one avoids tax. Tax attrition is the declared abnegation to pay a tax for careful affidavit (because the resister does not appetite to abutment the government or some of its activities). Tax resistors about do not booty the position that the tax laws are themselves actionable or do not administer to them (as tax protesters do) and they are added anxious with not advantageous for accurate government behavior that they oppose. National Board of Acquirement (NBR), Bangladesh. Page 26 of 31 Responses to tax avoidance: Abstention additionally reduces government acquirement and brings the tax arrangement into disrepute, so governments charge to anticipate tax abstention or accumulate it aural limits. The accessible way to do this is to anatomy tax rules so that there is no ambit for avoidance. In practice, this has not accepted accessible nd has led to an advancing action amid governments alteration legislation and tax advisors' award new ambit for tax abstention in the adapted rules. Tax evasion: By contrast, tax artifice is the accustomed appellation for efforts by individuals, firms, trusts and another entities to balk taxes by actionable means. Tax artifice usually entails taxpayers advisedly misrepresenting or concealing the accurate accompaniment of their diplomacy to the tax authorities to abate their tax liability, and includes, in particular, backbiting tax advertisement (such as declaring beneath income, profits or assets than absolutely earned; or overstating deductions). Actionable assets and tax evasion: Who acquire assets by actionable bureau (gambling, theft, biologic trafficking etc. ) is appropriate to address actionable assets as assets back filing anniversary tax returns. Suspected lawbreakers accept accordingly been answerable with tax artifice back there is bereft affirmation to try them for their non-tax accompanying crimes. Another times, tax artifice can be acclimated as a "one added attach in the coffin" by prosecutors by advertence that if a actuality earns actionable income, s/he may additionally be accusable of tax evasion. Those who attack to address actionable assets as advancing from a accepted antecedent could be answerable with money laundering. National Board of Acquirement (NBR), Bangladesh. Page 27 of 31 Artifice of Bulk Added Tax (VAT): During the closing bisected of the twentieth century, Bulk Added Tax (VAT) has emerged as a avant-garde anatomy of burning tax through the world. Producers who aggregate VAT from the consumers may balk tax by under-reporting the bulk of sales. Ascendancy of evasion: Akin of artifice depends on a cardinal of factors one of them actuality budgetary equation. People's addiction to balk assets tax declines back the acknowledgment for due acquittal of taxesisnotobvious. Evasionalsodependsontheefficiencyofthetax administration. Corruption by the tax admiral generally cede ascendancy of artifice difficult. Tax administrations resort to assorted bureau for active in ambit of artifice and accretion the akin of enforcement. Public assessment on tax avoidance: Tax abstention may be advised to be the abstention of one's duties to society, or alternatively the appropriate of every aborigine to anatomy one's diplomacy in a address accustomed by law, to pay no added tax than what is required. Attitudes alter from approval through neutrality to absolute hostility. Attitudes may alter depending on the accomplish taken in the abstention scheme, or the perceived bent of the tax actuality avoided. Corruption by tax officials: Corrupt tax admiral abet with the tax payers who intend to balk taxes. Back they ascertain an instance of evasion, they burden from advertisement in acknowledgment for actionable delight or bribe. Corruption by tax admiral is a austere botheration for the tax administering in a huge cardinal of arrested countries. National Board of Acquirement (NBR), Bangladesh. Page 28 of 31 The acumen in assorted jurisdictions of Tax Artifice and Tax Avoidance: The use of the agreement tax abstention and tax artifice can alter depending on the jurisdiction. In general, the appellation "evasion" applies to actionable accomplishments and "avoidance" to accomplishments aural the law. The appellation "mitigation" is additionally acclimated in some jurisdictions to added analyze accomplishments aural the aboriginal purpose of the accordant accouterment from those accomplishments that are aural the letter of the law, but do not accomplish its purpose. National Board of Acquirement (NBR), Bangladesh. Page 29 of 31 Conclusion Though the bulk of tax acquirement is to GDP is actual negligible, admitting the government is aggravating to aerate its tax acquirement through altered method. But the government should additionally admonish the cannon of accessibility while accession tax from assesses. As we are active in a affable association - should appear advanced to pay taxes to government in adjustment to conduct the administrative, aegis and development activities of the country. Otherwise we would not be able to prove ourselves as affable people. Tax is the best important in the duke of the government to ascendancy the abridgement as able-bodied as the inflection. It additionally helps in advance money to the economy, advance assertive antecedent of the abridgement and ascendancy some another activities of the economy. No Government can run it’s and accomplish administering works after accession tax as a antecedent of revenue. So, the Government imposes tax over the aggregation and the corporations. On the another duke Government can additionally accelerated to the baby and assertive basal industry for aegis through its tax policy. National Board of Acquirement (NBR), Bangladesh. Page 30 of 31 ? The End ? National Board of Acquirement (NBR), Bangladesh. 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