On Dec. 2, 2024, BNG Tax issued a notice dated Nov. 4, 2024 to amend schedule 7 of the Income tax act 2023 regarding capital income as well as capital gains tax.
A 15% capital gain tax on capital gains earned by companies, funds, and trusts as well as on capital gain on trading securities listed on the exchange by other taxpayers.
If a capital asset is transferred within 5 years of acquisition, the capital gain will be taxed at regular rates; 15% capital gain tax if it is transferred after 5 years.
The amendments will be effective from Jul. 1, 2025.
On the same day, BNG Tax issued a notice dated Sep. 2, 2024 to amend part 3 of the first schedule of the Income tax act 2023; deleted table-2 referred to in clause (2).
Plus deleted words, symbols and numbers and table-2 mentioned in sub-clause (g).
On Jun. 22, BNG Tax published the new Income tax act 2023.
BNG Tax published Income tax act 2023, which replaces Income tax ordinance 1984.
BNG GVT aims to review, modify the ordinances based on opinions of relevant ministries; new law expands the scope of various taxes, establishes financial discipline.
Document dated Jun. 22, 2023, received from BNG Tax Jun. 25, summarized Jun. 27.
Amendments
The new act has been made in Bengali language by making it more contemporary and modern, and the contents of the provisions have been converted into simple Bengali.
Reduces discretionary power of officials; officers cannot fix income tax as they wish.
The 29 documents required for filing a company's tax return has been reduced to 12.
Tax will be imposed on the interest disbursed by a mobile financial service provider and also on the interest of a loan taken from any citizen of Bangladesh, except banks.
Ceiling of investment rebate on monthly savings schemes is increased to BDT 120k.
Firms, funds with turnover over BDT 2 crore must submit audited financial statements.
Income derived from microcredit services will be considered tax-free if it is a revolving fund and spent on any asset for the services, not as capital for other businesses.
A ceiling of BDT 500k was placed on investments in Sanchayapatra and other government securities for allowable investments that provide tax credits.
Removed the tax exemption on dividend income from mutual funds and stocks.
Effectiveness
The act shall take effect immediately.
Jun. 26, 2023 Tax Rules 2023
On Jun. 26, 2023, BNG Tax published the Tax rules 2023 following the publication of the Income tax act 2023 (act no. 12 of 2023) on Jun. 22, 2023.
The notification comes into effect from Jul. 1, 2023 and is valid until Jun. 30, 2028.
Document dated Jun. 26, 2023, received from BNG Tax Jul. 3, summarized Jul. 6.
Aug. 2023 Clarification
On Aug. 6, 2023, BNG CB issued circular re Income tax act 2023, which aims to expand and streamline various types of taxes, establish financial discipline.
Cir FEPD 8/2022 draws attention to the change, commercial import and export transactions and inward and outward remittances are affected by this transition.
Specific clauses from Income tax act 2023, Source tax regulation 2023 must be followed, while other directions and guidelines from the circular remain unchanged.
Follows Feb. 2022 BNG CB issued circular on non-residents deduction , see #128940.
Sep. 2023 Inward Remittance
On Sep. 27, 2023, BNG CB issued circular re the deduction and payment of tax deducted at source from inward remittance against service and revenue sharing.
The circular was issued in accordance with section 124 of the Income tax act 2023.
The deduction of tax at the source is at a rate of 10% on the payment made or the amount deposited; the tax is levied on the person that is responsible for the payment.
Oct. 2023 Clarification
On Oct. 1, 2023, BNG CB clarified that no tax deduction will apply to IT-free repatriation accounts; this applies to all authorized dealer banks' main offices.
Dec. 2024 Capital Gains Tax
On Dec. 2, 2024, BNG Tax issued a notice dated Nov. 4, 2024 to amend schedule 7 of the Income tax act 2023 regarding capital income as well as capital gains tax.
A 15% capital gain tax on capital gains earned by companies, funds, and trusts as well as on capital gain on trading securities listed on the exchange by other taxpayers.
If a capital asset is transferred within 5 years of acquisition, the capital gain will be taxed at regular rates; 15% capital gain tax if it is transferred after 5 years.
The amendments will be effective from Jul. 1, 2025.
On the same day, BNG Tax issued a notice dated Sep. 2, 2024 to amend part 3 of the first schedule of the Income tax act 2023; deleted table-2 referred to in clause (2).
Plus deleted words, symbols and numbers and table-2 mentioned in sub-clause (g).
