The government of Bangladesh is focused on digitizing the revenue collection system to provide better services to the taxpayers. This digitalization aims to reduce their struggles, bring clarity on collecting revenue, and remove corruption from this sector.
New technology and systems have opened up such a situation where the need for an expert income tax lawyer has been increased. And good news is, to remove the complication of paying taxes and dealing with the procedures, Legal Advice BD is here to fulfill your needs!
We provide services to our clients to meet their required obligations from individual income tax to every income tax-related issue through our best income tax lawyers in Bangladesh.
Bangladesh’s government imposes both direct and indirect taxes where the direct tax includes land development tax, immovable property tax, income tax, etc. The indirect tax consists of VAT, advertisement tax, motor vehicle tax, etc.
This year new Income Tax Act, 2023 was passed in Parliament which is the first completed and well-organized income tax law after the Income Tax Ordinance, 1984. This law has brought some rules like- it has imposed a minimum tax of 2000 tk for all TIN holders whether their taxable income exceeds the required amount or not. However, later on, this decision was eliminated.
The government also made a change for persons putting up to 50000 tk for investment in Sanchaypatra that provides tax credits.
The tax rate of the country has also increased moderately. Persons were liable to pay 0% tax while their yearly salary was 0 – 300,000 tk. After the commencement of the new Income Tax Act, 2023, the amount is now 0 – 350,000 tk.
Tax evasion is considered a heinous crime in Bangladesh and the Income Tax Ordinance, of 1984 provided a penalty for this.
According to the Finance Act, 2023 and the Income Tax Act, 2023, the standard income tax rates are mentioned below-
up to BDT 350,000 - 0%
Over BDT 350,000 up to 450,000 (next BDT 100,000) - 5%
Over BDT 450,000 up to 750,000 (next BDT 300,000) - 10%
Over BDT 750,000 up to 1,150,000 (next BDT 400,000) - 15%
Over BDT 1,150,000 up to 1,650,000 (next BDT 500,000) - 20%
Over BDT 1,650,000 - 25%
The 0% surcharge entrance for wealthy individuals is increased from BDT 30 million to BDT 40 million, resulting as follows-.
up to BDT 40 million – 0%
over BDT 40 million up to 100 million – 10%
over BDT 100 million up to 200 million – 20%
over BDT 200 million up to 500 million – 30%
The minimum tax for persons living in Dhaka City corporation and Chattogram City corporation areas is tk 5000 only if their taxable income exceeds tk 350,000 and 4000 tk for individuals living in other city corporations. For non-city corporation areas, the amount is tk 3000.
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