# TAX # Documents attachment with Income Tax return in the case of income from House Property and Interest on Securities.

 

# VAT # Fine or penalty of violation of VATand SD Act 2012.

 

Tax rebate on investment

 

            An assessee shall be entitled to a rebate from the amount of tax payable if he/she invests during the income year in the following items, namely:

a)       life insurance premium

b)       contribution to approved Provident Fund (both by the employee and employer)

c)       contribution to deposit pension scheme amounting to not exceeding Tk. 60,000 sponsored by a scheduled bank or a financial institution

d)       donation to a national level institution set up in memory of the “Liberation War”

e)       donation to a national level institution set up in memory of “Father of the Nation”

f)         donation to Prime Minister’s Higher Education Fund

g)       donation to Aga Khan Development network/Asiatic Society/CRP/Dhaka Ahsania Mission Cancer Hospital/icddr,b

h)       donation to Zakat Fund/charitable fund established by or under Zakat Fund

i)         any sum invested in Bangladesh Government Treasury Bond and Sanchayapatra, stocks and shares of listed companies, mutual funds and debentures listed with any stock exchange in Bangladesh

Allowable limit of investment tax rebate is as follows:

Total income	Investment tax rebate on eligible amount*
Up to Tk. 1.5 million	15%
Over Tk. 1.5 million	10%

*Eligible amount is the lowest of the following:

a)       Actual investment; or

b)       25% of total income; or

c)    Tk. 10 million( 1Crore)

 

 

# Tax- Submission of Statement of Assets and Liability and Lifestyle (Section 80)

 

It is mandatory for an individual assessee to submit the statement of assets, liabilities and lifestyle, if he

a)          has a gross wealth over Tk. 4 million; or

b)          owns a motor car; or

c)          has made an investment in a house property or an apartment in the city corporation area.

 

If any individual, not being a shareholder director, having only income from salary or business or profession, he may opt not to submit the statement of lifestyle if his total income is less than Tk. 0.4 million.

Tax on retained earnings (Section 16G) as per ITO 1984

 

                  If listed company transfers more than 70% of its net profit/income after tax to retained earnings      or any fund, reserve or surplus in an income year, it shall have to pay tax at the rate of 10% on         the total amount transferred. Such tax cannot be adjusted with any other tax liability of the                 company.

 

Tax on dividend/remittance of profit as per ITO 1984.

 

A company paying dividend shall withhold tax at the rate of

         —     20% on dividend payable to a non-resident company/fund/trust and resident company,

         —     30% on dividend payable to any non-resident other than a company/fund/trust, and

        —     10% (subject to furnishing Twelve-Digit Taxpayer’s Identification Number) or 15% on dividend payable to a                         resident person other than a company.

 

If stock dividend declared or distributed by a listed company exceeds the cash dividend in any income year, 10% tax on the whole amount of stock dividend will be applicable. Such tax cannot be adjusted with any other tax liability of the company. The provision is also applicable if any cash dividend is not declared or distributed in the income year.

 

A branch company shall withhold tax at the rate of 20% while remitting profit to Head Office.

 

However, in cases where dividend is payable to a shareholder resident in a country with which Bangladesh has signed a tax treaty, the rate mentioned in the tax treaty will apply subject to confirmation/certification from NBR.

 

Further, any distribution from mutual fund or alternative investment fund would be subject to tax like dividend declared by a company.