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The taxation system is made by the National Board of

Revenue. The NBR made the rules and regulations both for
the companies and individuals. It is to avoid the problems
and hazards of taxation. The NBR has the latest code of
taxation for 2009-2010. This code is clearly consisting of
all the tax rules and the range and percentage of taxation.
The chart of the taxation is given below.

What is the tax structure for individual tax payers?


If an individual has been in Bangladesh for a period/period
totaling 182 days or more in the income year, he/she is
considered a resident. In case an individual has been in the
country for 90 days in the income year and 365 days in
four years preceding this year, he/she will also be
considered a resident.
Each individual is entitled to an investment tax credit of
15 percent of the total income or Tk 100,000 whichever is
less. Incomes from small and cottage industries are
entitled to a 5 to 10 per cent tax rebate depending on the
production volume.
On the first Tk. 60,000.00 of total income - no tax
obligation
On the next Tk. 40,000.00 of total income - 10%
On the next Tk. 50,000.00 of total income - 15%
On the next Tk. 1,50,000.00 of total income - 20%
On the balance of total income - 25%

What is the percentage of corporate tax levied?


Any income collected or gained by a company doing
business in Bangladesh, whether resident or not is taxable.
Corporate tax rates for industrial companies whose shares
are publicly traded is 35% and the rate of those whose
shares are not publicly traded is 40%.
Tax rates on income of all other companies including
banks, financial institutions, insurance companies and
local authorities is 45%. Companies enjoying tax holiday
are required to invest only 25% to 30% of their income in
other activities as per rules of the National board of
Revenue (NBR).

Other than Company :


For individuals other than female taxpayers, senior
taxpayers of 70 years and above and retarded 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 Amount 25%
For female taxpayers, senior taxpayers of age 70 years and
above and retarded taxpayers, tax payable for the
First 1,80,000/- Nil
Next 2,75,000/- 10%
Next 3,25,000/- 15%
Next 3,75,000/- 20%
Rest Amount 25%
Minimum tax for any individual assessee is Tk. 2,000
Non-resident Individual 25%
(other than non-resident Bangladeshi)
For Companies
Publicly Traded Company 27.5%
Non-publicly Traded Company 37.5%
Bank, Insurance & Financial Company 45%
Mobile Phone Operator Company 45%
If any publicly traded company declares more than 20%
dividend, 10% rebate on total tax is allowed.

There are 7 categories of income on which tax is


applicable. These categories are given below:
• Salaries
• Interest on securities
• Income from house property
• Income from agriculture
• Income from business or profession
• Capital gains
• Income from other sources.
NBR classified some categories of taxpayers who are
eligible for taxpaying. These are given below.
• If total income of any individual other than female
taxpayers, senior taxpayers of 70 years and above and
retarded taxpayers during the income year exceeds Tk
1,65,000/-.
• If total income of any female taxpayer, senior taxpayer
of 70 years and above and retarded taxpayer during
the income year exceeds Tk 1,80,000/-.
• If any person was assessed for tax during any of the 3
years immediately preceding the income year.
• A person who lives in any city
corporation/paurashava/divisional HQ/district HQ and
owns a building of more than one storey and having
plinth area exceeding 1,600 sq. feet/owns motor
car/owns membership of a club registered under VAT
Law.
• If any person subscribes a telephone.
• If any person runs a business or profession having
trade license.
• Any professional registered as doctor, lawyer, income
tax practitioner, Chartered Accountant, Cost &
Management Accountant, Engineer, Architect and
Surveyor etc.
• Member of a Chamber of Commerce and Industries or
a trade Association.
• Any person who participates in a tender.
• A person who has a Taxpayer's Identification Number
(TIN).
• Candidate for Union Parishad, Paurashava, City
Corporation or Parliament.
Time to Submit Income Tax Return:
For Company
By fifteenth day of July next following the income year or,
where the fifteenth day of July falls before the expiry of six
months from the end of the income year, before the expiry
of such six months.
For Other than Company
Unless the date is extended, by the Thirtieth day of
September next following the income year.
This is the summary of the tax code provided by the
National Board of Revenue of Bangladesh. The taxpayers
have to pay by obeying this code of taxations.

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