An Introduction to Income Tax in Bangladesh
The income tax is administrated Income Tax Ordinance, 1984 and the Income tax Rules,
1984 as well as notification made under the Ordinance. The charge of tax of a person depends on
its residentship. Total world Income of a resident is charged to tax in Bangladesh. Where as a
non-resident's Bangladesh income is only charged to tax in Bangladesh. There are seven heads of
income. The are salary, interest on security, house property, agriculture, business and profession,
capital gain and other sources.
Submission of income tax returns are generally due by 30th September in case of non-
companies and by 31st December in case of companies.
Assessment is made in several procedures. They are self assessment, presumptive
assessment, spot assessment, pre-audit based assessment. Certain percent of self assessment
cases are selected for audit.
The assessee can prefer appeal if aggrieved by his assessment. There are three primary
forums for appeal. They are to the Appellate Commissioner/Additional Commissioner/Joint
Commissioner or to the Commission for reviews. The decisions of Appellate
Commissioner/Additional Commissioner/Joint Commissioner can be challenged to the next
Appellate Court named as Appellate Tribunal.
Withholding tax is leviable on a number of items including contractors, imports, transfer
of urban land/building, bank deposits etc.
Bangladesh has Agreement on Avoidance of Double Taxation with 20 countries.
Negotiation with some other countries are on way.