Tax Calculations

What is your minimum tax liability

 

We generally know that if any taxpayer’s taxable income exceeds the minimum taxable threshold, then he must pay taxes on the excess amount in accordance with a certain percentage. However, if his tax liability calculated based on the excess amount does not exceed the minimum tax limit, he must pay the minimum tax even if his taxable income tax liability is lower than the minimum tax set by the State Administration of Taxation based on the taxpayer’s location .

Calculation of taxable income

Provide customers with reports summarizing their tax obligations

Help clients develop business plans

Land and property income tax

Helps reduce tax liability

What are the compliance requirement for tax return in Bangladesh?

Non-residents

Non-resident international executives have the same tax declaration compliance requirements as residents, provided that non-resident foreigners must obtain a work permit and SB & NSI customs clearance certificate. If the transferee came through an A3 or E1 visa, the visa copy itself is considered a work permit.

Residents

After the end of the income year and within the tax return deadline, each resident transferred must submit a tax return for the period from July 1 to June 30 or the period of the trustee's stay. Before filing an income tax return in Bangladesh, the transferee must obtain an e-TIN (12-digit electronic tax number) from the tax authority.

Fill income tax on time

If the transferred fails to file the income tax return on time, the penalty will be 10% of the tax levied on the last assessed income (minimum 1,000 Bangladeshi Taka (BDT)). In the case of continuous default, a further fine of BDT50 will be imposed on each day of the duration of the default. Find out what you can expect and the steps you can take to correct.

TAX reimbursement strategies

 

Normally in Bangladesh cash tax refund is not possible even though there is a provision of cash tax refund in our law. Excess tax payment is generally adjusted with next year’s tax liability.

Calculation of estimates/withholding

Retaining of expense in Bangladesh is dealt with through Pay-As-You-Earn (PAYE). Where absolute pay surpasses BDT600,000 during the pay year for any individual, they are needed to pay advance duty as either 100% of last evaluated charge or 75% of current assessed annual expense.

Help for foreign assessments

In Bangladesh there is Double Taxation Avoidance Agreement (DTAA) with different nations/locales to have the expense help, nonetheless these are dependent upon specific conditions and acquiring charge exception declaration from NBR.

General tax reductions

Chosen one (just occupant and non-inhabitant Bangladeshi) can get venture tax reduction through putting resources into government determined region.
Expatriates are not permitted to tax reduction or speculation remittance despite the fact that they become charge inhabitant in Bangladesh.

Sample Tax calculation

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1

House rent 2,500,000 (300,000 50% of basic salary or monthly 25,000 which one is lower)

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2

Medical allowance 400,000 (120,000 10% of basic salary or 120,000 which one is lower)

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3

Conveyance allowance 200,000 (30,000 * If conveyance paid in cash)

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4

Full time car facility 250,000 (5% of basic salary or 60,000 which one is higher)

Income tax return

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