individual tax free income threshhold feature finance act 2014-15.pdfother areas of bangladesh 6....

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

2

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%



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%

3

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%


15% 15%


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%

5

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.

7

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


90,000/- whichever is higher

2. Gulshan, Banani and Baridhara of Dhaka 4% of the deed value or taka


3. Dhanmondi of Dhaka 4% of the deed value or taka


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


1,80,000/- ever is higher

8

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)


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


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



higher

9. Khilgaon Rehabilitation Area (beside less than

100 feet road), Rajarbagh Rehabilitation Area

(beside 40 feet and other internal road) of Dhaka



higher

10. Goran (beside 40 feet road) and Hajaribagh

Tannery Area of Dhaka



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

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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

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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





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%

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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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individual tax free income threshhold feature finance act 2014-15.pdfother areas of bangladesh 6....

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