individual tax free income threshhold feature finance act 2014-15.pdfother areas of bangladesh 6....
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Individual Tax Free Income Threshhold
Type of Taxpayers Tax free Income Limit
Last Year This Year
Individual 220,000 220,000
Women and 65 above aged taxpayers 250,000 275,000
Retarded taxpayers 300,000 350,000
Liberation war wounded gazetted freedom fighters 220,000 400,000
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Individual Tax RateLast Year Next Year
Income Rate Income Rate
First taka 220,000 Nil First taka 220,000 Nil
Next taka 300,000 10% Next taka 300,000 10%
Next taka 400,000 15% Next taka 400,000 15%
Next taka 300,000 20% Next taka 500,000 20%
Amount over taka 12,20,000 25% Next taka 30,00,000 25%
Amount over taka 44,20,000 30%
Any income of an individual being a non-resident foreigner
25% Any income of an individual being a non-resident foreigner
30%
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Incremental Surcharge based on net wealth payable by individual taxpayerNet Wealth Rate of surcharge on payable
Last Year This Year
More than 2 crore but not more than 10 crore
10% 10%
More than 10 crore but not more than 20 crore
15% 15%
More than 20 crore but not more than 30 crore
15% 20%
More than 30 crore 15% 25%
4
Corporate Tax Company Last Year This Year
Publicly traded company 27.50% 27.50%
Publicly traded company declaring at least 20% (last year)/ 30% (this year) dividend
24.75% 24.75%
Publicly traded company declaring less than 10% dividend
37.50% 35%
Non-publicly traded company 37.5% 35%
Bank, Insurance & Financial Institute 42.50% 42.50%
Merchant Bank 37.50% 37.50%
Cigarette : Non Publicly TradedPublicly Traded
45%40%
45%40%
Cellular Phone: Non Publicly TradedPublicly Traded
45%40%
45%40%
Minimum Tax payable on gross turnover 0.50% 0.30%
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Income Tax on sale of land U/S 53H
Tax Per katha of land and per sft of building, flat, apartment etc or 4% of deed value which ever is higher has been proposed in the finance act for certain commercial and residential areas of Dhaka, Chittagong and Narayangonj
Capital asset now include agricultural land
1% to 4% tax on deed value has been proposed for all other areas of Bangladesh
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Income Tax on sale of land –Commercial Areas- Schedule (a)
SL No. Name of the commercial area or areas Rate of tax per katha (1.65 decimal)
1. Gulshan, Banani, Motijheel, Dilkhusha, North
South Road, Motijheel Expansion areas and
Mohakhali of Dhaka
4% of the deed value or taka
10,80,000/- whichever is higher
2. Karwan Bazar of Dhaka 4% of the deed value or taka 6,00,000/-
whichever is higher
3. Agrabad and CDA Avenue of Chittagong 4% of the deed value or taka 3,60,000/-
whichever is higher
4. Narayanganj, Banga Bandhu Avenue, Badda,
Sayedabad, Postogola and Gandaria of Dhaka
4% of the deed value or taka 3,60,000/-
whichever is higher
5. Uttara Sonargaon Janapath, Shahbag,
Panthapath, Banglamotor, Kakrail of Dhaka
4% of the deed value or taka 6,00,000/-
whichever is higher
6. Nababpur and Fulbaria of Dhaka 4% of the deed value or taka 3,00,000/-
whichever is higher:
For flat on the land, an additional tax of taka 600/- (six hundred) per square meteror four per cent of the deed value of such flat, whichever is higher is payable.
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AIT on sale of land - Schedule (b)SL No. Name of the area or areas Rate of tax per katha (1.65
decimal)
1. Uttara (Sector 1-9), Khilgaon rehabilitation area (beside
100 feet road), Azimpur, Rajarbagh rehabilitation area
(beside bishwa road), Baridhara DOHS, Bashundhara
(Block: A–G), Niketon of Dhaka, Agrabad, Halishohar,
Panchlaish, Nasirabad, Mehedibag of Chittagong
4% of the deed value or taka
90,000/- whichever is higher
2. Gulshan, Banani and Baridhara of Dhaka 4% of the deed value or taka
3,00,000/- whichever is higher
3. Dhanmondi of Dhaka 4% of the deed value or taka
2,40,000/- whichever is higher
4. Kakrail, Segunbagicha, Bijoynagar, Eskaton, Green
Road, Elephant Road, Fakirapool, Arambagh,
Maghbazar (within one hundred feet of main road),
Tejgaon Industrial Area, Sher-e-Banglanagar
Administrative Area, Agargaon Administrative Area,
Lalmatia, Mohakhali DOHS, Cantonment of Dhaka and
Khulshi of Chittagong
4% of the deed value or taka
1,80,000/- ever is higher
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AIT on sale of land - Schedule (b)SL
No.
Name of the area or areas Rate of tax per katha (1.65
decimal)
5. Kakrail, Segunbagicha, Bijoynagar, Eskaton,
Green Road, Elephant Road area (outside one
hundred feet of main road) of Dhaka
4% of the deed value or
taka 1,20,000/- whichever
is higher
6. Green Road (from Road 3 to 8 of Dhanmondi
Residential Area of Dhaka)
4% of the deed value or
taka 2,40,000/- whichever
is higher
7. Uttara (Sector 10 to 14), Nikunj (south), Nikunj
(North), Badda Rehabilitation Area, Ganderia
Rehabilitation Area, Syampur Rehabilitation
Area, IG Bagan Rehabilitation Area, Tongi
Industrial Area of Dhaka
4% of the deed value or
taka 60,000/- whichever is
higher
9
AIT on sale of land - Schedule (b)SL
No.
Name of the area or areas Rate of tax per katha (1.65
decimal)
8. Syampur Industrial Area, Postagola Industrial
Area and Jurain Industrial Area of Dhaka
4% of the deed value or
taka 48,000/- whichever is
higher
9. Khilgaon Rehabilitation Area (beside less than
100 feet road), Rajarbagh Rehabilitation Area
(beside 40 feet and other internal road) of Dhaka
4% of the deed value or
taka 72,000/- whichever is
higher
10. Goran (beside 40 feet road) and Hajaribagh
Tannery Area of Dhaka
4% of the deed value or
taka 30,000/- whichever is
higher:
For flat on the land, an additional tax of taka 600/- (six hundred) per
square meter or four per cent of the deed value of such flat, whichever is
higher is payable.
10
AIT on sale of land –Other areas –Sch(c)SL
No.
Name of the area or areas Rate of tax
1. Within the jurisdiction of Rajdhani Unnayan
Kartripakya (RAJUK) and Chittagong Development
Authority (CDA) except areas specified in schedule
(a) and (b)
4% of deed
value
2. Within the jurisdiction of Gazipur, Narayanganj,
Munshiganj, Manikganj, Narsingdi, Dhaka and
Chittagong districts [excluding Rajdhani Unnayan
Kartripakya (RAJUK) and Chittagong Development
Authority (CDA)], and within any City Corporation
(excluding Dhaka South City Corporation and Dhaka
North City Corporation) and Cantonment Board
3% of deed
value
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AIT on sale of land –Other areas –Sch(c)SL
No.
Name of the area or areas Rate of tax
3. Areas within the jurisdiction of a paurasabha
of any district headquarter
3% of deed
value
4. Areas of any other Pauroshova 2% of deed
value
5. Any other area not specified in schedule (a),
(b) and (c)
1% of deed
value.
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Method of Accounting Chartered Accountant must certify that company
taxpayer maintained books of accounts in accordance with Bangladesh Accounting Standard (BAS) and financial statements are prepared in accordance with Bangladesh Financial Reporting Standard (BFRS)
Penalty of taka 50,000 to taka 200,000 shall be imposed on a Chartered Accountant for false or incorrect audit report
13
Non-deductible expense U/S 30 Any rent paid other than cross-cheque or bank transfer
Excess perquisites in excess of taka 350,000 (instead of taka 250,000)
Expenditure exceeding 10% of net profit disclosed in accounts (instead of profit) under head office expense
Royalty, technical service fee, technical know how fee etc exceeding 8% of net profit disclosed in accounts (instead of profit)
Incentive bonus exceeding 10% of net profit disclosed in accounts (instead of profit)
14
Deduction of loan repayment from income A new proviso has been inserted in Section 19(26) in
order to deduct loan repayment from income which has been previously included in income of the taxpayer who took loan other that by a cross cheque.
“provided that where the loan or part thereof referred to in this sub-section is repaid in a subsequent income year, the amount so repaid shall be deducted in computing the income for that subsequent year”.
15
Expansion of amortization expense Amortization of license fees paid before or after July
2012 is now allowable expense
License fees includes spectrum assignment fees, GSM license fees, license acquisition fees or license renewal fees
This provision shall be applicable from 2013-14 assessment year
16
Tax Holiday Industries commencing commercial production within 30
June 2019 (instead of June 2015) are now eligible for tax holiday
Tax holiday for industries set up in Rajshahi, Khulna, Sylhet, Barishal and Rangpur divisions (outside city corporation areas) has been extended to 10 years (from 7 years)
Hybrid Hoffman Kiln technology brickfield has been included in the list of tax holiday industries
Manufacturing industries set up during July 2014 to June 2019 in any area outside any city corporation are eligible for 20% tax rebate
20% tax rebate shall also be applicable to manufacturing industries moved out side any city corporation area during July 2014 to June 2019
17
Reinstating Accelerated Depreciation Industries that are eligible for tax holiday now have an
alternative choice of having accelerated depreciation @ 50%, 30% and 20% in 1st, 2nd and 3rd year of commercial production respectively
18
Withholding tax Collection of tax @ 3% on travel agency commission and
incentive bonus
5% tax on amount paid by the insurance company in excess of premium paid to the policy holder
3% TDS (instead of 0-5%) on local LC exceeding taka 5 lakh except LC related to essential consumable goods
10% tax on fees paid by the mobile phone companies
4% tax on the deed value in case of registering long term lease agreements by Rajuk, CDA, RDA, KDA and National Housing Authority
TDS @ 10% on gain realized by any company or firm from sale of shares traded in any stock exchange
5% TDS on interest on debentures, government treasury bills and bonds
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Withholding Tax ...contd No TDS on interest on pensioner savings certificate and wage earners
development bonds upto investment of 5 lakh taka 5% TDS has been made final discharge of tax liability for interest on
pensioner savings certificate and wage earners bond 10% TDS on fees paid for actuarial services 6% (instead of 4%) TDS on payment made by PDB to the quick rental
power plants 3% TDS on vatable value of band roles on mineral water Reduction of TDS on export cash subsidy to 3% (from 5%) Reduction of TDS on deemed commission to 3% (from 5%) for
distribution of goods 15% TDS on dividend if the shareholder do not have Taxpayers
Identification Number 3% tax on oil supply by a oil refinery company Tax deducted shall be deposited to government exchequer within two
weeks from the end of month in which tax has been deducted (previously within three weeks from the date of deduction)
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Exclusion from final discharge of tax liabilities TDS under section 52 shall not be considered final
discharge of tax liability for the following taxpayers:
- a contractor or a sub-contractor to the oil companies
- oil marketing companies and its dealers
- supplier of oil by any oil refinery
- any taxpayer engaged in gas transmission
21
Reduction of Tax Rate for some organizations 1. Tax rate has been reduced to 25% on all income (except capital gain) of following Autonomous Bodies :
Dhaka Wasa, Chittagong Wasa, Rajshahi Wasa, Khulna Wasa, Civil Aviation Aothority of Bangladesh (CAAB), Rajuk, RDA, KDA, CDA, National Housing Authority (NHA), Chittagong Port Authority, Mongla Port aothority, Paira Port aothority, Bangladesh Land Port Authority, Bangladesh Television, Bangladesh Betar, BIWTA, BRTA, Bangladesh Telecommunication Regulatory Commission (BTRC), Bangladesh Securities and Exchange Commission, Bangladesh Power Development Board, Bangladesh Rural Electrification Board, Bangladesh Water Development Board, BEPZA, Jamuna BahumukhiSetu Kartripakha, Barendra Bahumukhi Unnayan Kartripakha, Bangladesh Hi-tech Park Authority, Bima Unnayan o NiyantrankariKartripakha and Techshoi o Nabayanjoggya Jalani UnnayanKartripakha
2. Tax rate for any national level research institutions reduced to 15%
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Presumptive Tax- vehicles plying for hireVehicle Income Tax
For less than 10 years old Vehicles :
More than 52 seats vehicle 12,500
Less than 52 seats vehicle 9,000
Luxury air-conditioned bus 30,000
Double Decker bus 12,500
Air-conditioned coaster or minibus 12,500
Other coaster or minibus 5,000
Container Prime Mover 19,000
5 tons or more Truck or Tank lorry 12,500
More than 1.5 tons but less than 5 tons Truck or Tank lorry 7,500
Less than 1.5 tons Truck, pick-up, human hauler, Maxi, Auto-riksha 3,000
Air-conditioned taxi cab 9,000
Other taxi cab 3,000
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Presumptive Tax- vehicles plying for hireVehicle Income Tax
For more than 10 years old Vehicles :
More than 52 seats vehicle 6,500
Less than 52 seats vehicle 4,500
Luxury air-conditioned bus 15,000
Double Decker bus 6,500
Air-conditioned coaster or minibus 9,000
Other coaster or minibus 2,500
Container Prime Mover 10,000
5 tons or more Truck or Tank lorry 7,500
More than 1.5 tons but less than 5 tons Truck or Tank lorry 4,500
Less than 1.5 tons Truck, pick-up, human hauler, Maxi, Auto-rikshaw 2,500
Air-conditioned taxi cab 4,500
Other taxi cab 1,500
24
Presumptive Tax- Launch, cargo, coaster, dump-barge etc
Vehicle Income Tax
For less than 10 years old water vehicles :
For passenger carrying launch, steamer etc- taka 100 per passenger
Coaster or cargo taka 135 per ton
Dump-barge taka 100 per ton
For more than 10 years old water vehicles :
For passenger carrying launch, steamer etc- taka 40 per passenger
Coaster or cargo taka 60 per ton
Dump-barge taka 50 per ton
25
Personal Vehicle TaxVehicle Income Tax
Upto 1,500 CC Jeep or Car 15,000
Upto 2,000 CC Jeep or Car 30,000
Upto 2,500 CC Jeep or Car 50,000
Upto 3,000 CC Jeep or Car 75,000
Upto 3,500 CC Jeep or Car 100,000
More than 3,500 CC Jeep or Car 125,000
Microbus 20,000
26
Travel TaxRoute Country Rate
Air North America, South America, Europe, Australia, Newzealand, Chaina, Japan, Hongkong, North Korea, South Kore, Vietnam, Laos, Conmbodia and Taiwan
4,000
Any SAARC Country 1,200
Other Country 3,000
Water Any Country 800
Land Any Country 500
27
Immunity from tax audit Tax returns submitted under universal self assessment scheme
shall not be selected for tax audit, if the return comply with the following conditions:- return shows 20% higher income than last assessed income- return is accompanied by corroborative evidence in support of any
income exempted from tax-return is accompanied by a copy of bank account statement in
support of any loan taken exceeding taka 5 lakhs ;- return does not show receipt of gift during the year; - retun does not show any income chargeable to tax at a rate
reduced under section 44 or- return does not show or result any refund
28
House property income Land lord must have a dedicated bank account for
depositing rental income, if aggregate of his monthly rental receipts exceeds taka 25 thousand per month
Penalty of taka 5 thousand or 50% of tax payable on house rent shall be imposed if dedicated bank account has not been maintained by the house owner
29
Amendment of depreciation schedule Following assets has been included in the third
schedule and depreciation rated has been specified as follows:
- Office equipment @ 10%
- Boarding Bridge @ 10%
- Pavement runway, taxiway @ 2.5%
- Apron, tarmac @ 2.5%
- Communication, navigation and other equipment @ 5%
30
Exclusion from total income Dividend income up to taka 20 thousand Agricultural income up to taka 2 lakh Income earned in abroad by a Bangladeshi citizen and
brought in to Bangladesh through official channel Income donated through crossed cheque to any girls
school, girls college, technical and vocational institution and any national level research and development institution engaged in research on agriculture, science, technology and industrial development
Income earned by an individual assessee from sale of shares listed in any stock exchange
Income earned from Nationwide Telecommunication Transmission Network (NTTN) business
31
Other Changes Tax free cash medical allowance- 10% of basic salary or taka 60
thousand, whichever is lower 5% notional income (instead of 7.50%) for use of vehicle
provided by employer Maximum allowable limit for CSR has been increased to taka 12
crore (instead of taka 8 crore) Donation to any fund established and approved by government
for any natural disaster, tournament or any national program now be considered as CSR activity
Requirement of submission of tax clearance certificate issued by the DCT by a brick field at the time of getting clearance from environment Ministry and renewal of license from DC Office
5 years tax holiday (100%, 80%, 60%, 40% and 20%) for Dhaka and Chittagong Stock Exchanges
32
Other changes ...contd Following persons has been excluded from the list of
taxpayers who must submit a tax return, if they do not have any taxable income in the income year and any of the three preceding income years:-Taxpayers who have a TIN
-Who subscribes a land phone
-Who have a more than one story 1600 sft house
-Who is a candidate in any union parishad election
Candidate in upazila, pourashava, city corporation and national parliament election must submit a e-TIN certificate
33
Other changes ...contd Transfer pricing regulation shall be applicable from
July 2014
Tax payable on the basis of return or tax payable under section 16CCC, whichever is higher must be paid at the time of submission of return
Estimated income of contractor and sub-contractor of oil companies has been increased to 15% from 10%
Bond purchased from tax free poultry income must be held until maturity date
Clinic, Hospitals and Diagnostic Centres must deduct income tax from payment of rent
Interest on loan taken from bank or any financial institutes be considered as an allowable deduction in computing house property income.
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