Key Rules for Filing Income Tax Returns in Bangladesh

Income Tax Filing Rules in Bangladesh

Bangladesh has specific regulations regarding the filing of income tax returns, detailing the timing and nature of submissions. Here’s an overview of the key rules as per the Income Tax Ordinance and relevant guidelines:

1. Return for Departing Individuals:
   • Individuals leaving Bangladesh before the end of the income year must file an income tax return for the period up to their departure date.
2. Return for Resident and Non-Resident Bangladeshis:
   • Residents and non-residents (excluding companies) must file a normal income tax return by November 30 of each year. This deadline has been consistent since the assessment year 2016-17.
3. VAT Returns:
   • Eligible VAT assesses are required to file their VAT returns by the 15th of each month. Timely filing is crucial to avoid penalties.
4. Withholding Tax Returns for Companies:
   • Companies must submit their withholding tax returns by January 31 and July 31 of the income year. This ensures compliance with withholding tax obligations.
5. Annual Information Return:
   • Non-Governmental Organizations (NGOs), companies, and cooperative societies are required to file their annual information returns by January 31 and July 31.
6. Effective Return Notice:
   • Individuals who receive a written notice from the National Board of Revenue (NBR) may be required to submit their return by a different deadline than the usual dates.
7. Revised Returns:
   • Any individual who fails to file a return as required must submit a revised return to rectify the oversight.
8. Statement of Assets:
   • Individuals with a net worth exceeding 20 lakh BDT, those who own a motor vehicle, or those who have made investments in residential property within city corporation areas are obligated to file a statement detailing their total assets, liabilities, and expenses.

Compliance and Penalties

Timely filing of income tax returns is crucial to avoid penalties imposed by the government. According to the Income Tax Ordinance, failure to file within the stipulated time may lead to fines, interest on unpaid taxes, and other penalties.

Additional Considerations

• E-filing: The NBR encourages e-filing of tax returns for efficiency. Taxpayers can submit their returns through the NBR’s online portal.
• Tax Identification Number (TIN): A TIN is mandatory for all individuals and entities filing returns. It must be obtained prior to submission.
• Professional Advice: Given the complexities of tax regulations, it is advisable for taxpayers to consult tax professionals for tailored guidance and assistance in compliance.

By adhering to these rules, taxpayers can ensure compliance with the Income Tax Ordinance and avoid penalties while maximizing their potential tax benefits.

Please note that these fees can vary, and it’s important to check the latest updates from the National Board of Revenue (NBR) or relevant authorities.

1. Income Tax Return Filing Fees

• Individual Taxpayers: Generally, there is no fee for filing individual income tax returns.
• Corporate Taxpayers: Some professional fees may apply for services rendered by tax consultants or accountants.

2. Value Added Tax (VAT) Registration Fees

• New Registration: Usually around BDT 1,000 (this may vary based on the business type).
• Renewal Fees: Generally, BDT 500 for renewal, but can vary.

3. Tax Identification Number (TIN) Registration Fees

• TIN Application Fee: Typically free of charge, but some service providers may charge for assistance.

4. Withholding Tax Returns Filing Fees

• No government fee, but professional service fees may apply for assistance.

5. Annual Information Return (AIR) Filing Fees

• No specific government fee; costs may arise from consulting services.

6. Transfer Pricing Documentation Fees

• Fees may vary based on the complexity of documentation and professional assistance required.

7. Appeal Fees

• Filing an appeal against an assessment may incur a nominal fee, typically around BDT 1,000.

8. Penalties for Late Filing

• Late Filing Penalty: Varies; typically a percentage of the due tax amount.
• Interest on Unpaid Taxes: Generally, 10% per annum on outstanding amounts.

9. Tax Clearance Certificate Fees

• Generally free of charge, though administrative fees may apply for expedited processing.

10. Service Fees by Tax Consultants

• Fees for tax consultancy services can vary widely based on the complexity of services provided, often ranging from BDT 5,000 to BDT 50,000 or more.

Important Notes:

• Fees can vary; always check with the National Board of Revenue (NBR) for the latest updates.
• Consulting a tax professional is advisable for personalized guidance.