Introducing Tax News Flash, your go-to source for staying updated on our specific picks from the latest developments in Bangladesh's tax landscape. With the tax environment in constant transformation and significant shifts occurring, it is crucial to remain informed. Our platform delivers concise updates, ensuring you are abreast of recent changes and amendments. Stay ahead of the curve and navigate the complexities of taxation confidently with Tax News Flash. Keep yourself informed with our news flashes below.
- Income tax news flash on export of goods
Previously, reduced tax rates were applicable for all exporters on their export income subject to fulfilment of conditions such as having a TIN and complying with provisions of ITA 2023.
However, now this facility is made applicable for only income from export of goods.
It should be mentioned that for obtaining a lesser withholding certificate under section 123 of ITA 2023, this reduced tax rate can no longer be used. Also, a separate mechanism for computing the applicable withholding tax rate is now prescribed using proportional method. For this purpose, all certificates issued till 3 March 2024 will now become invalid, and new certificate will need be obtained from NBR.
Please find more details in the News flash here
Interest income / profit earned from Offshore Banking Units operated under the Offshore Banking Act 2024 are exempted for the persons depositing money into the OBU and non-resident lenders to OBU. There is no time limit prescribed for this exemption.
Please find more details in the News flash here
3. Exemptions applicable for Economic Zone
Economic Zones (EZ) in Bangladesh offer significant incentives to boost industry, employment, and exports. Key benefits include income tax exemptions for up to 12 years for developers and up to 10 years for investors, VAT exemptions on essential services, and customs duty exemptions on the import of capital machinery and development goods. These incentives aim to attract investment and facilitate economic growth.
Please find more details in the News flash here
4. Exemptions applicable for High Tech Parks
Bangladesh Hi-Tech Park Authority (BHTPA) incentivises local and foreign investors in Hi-Tech Parks, Software Technology Parks, and IT Training & Incubation Centres. Key benefits include income tax exemptions for up to 12 years for developers and up to 10 years for investors, VAT exemptions on certain procurement and electricity, and customs duty exemptions on the import of capital machinery and development goods. These incentives aim to boost the Hi-Tech/IT sector's growth.
Please find more details in the News flash here
5. Incentives applicable for Power Generation Companies
Non-coal based private power generation companies in Bangladesh starting operations between certain dates will benefit from various tax exemptions, including on income from power generation, foreign employee income, interest on foreign loans, royalties, technical fees, and capital gains. These exemptions, detailed in several SROs, aim to support the sector's growth and include specific terms for companies using gas or RLNG for combined cycle power generation as well.
Please find more details in the News flash here