Needs to Show the Proof of Submission of Income Tax Return

National Board of Revenue (NBR) has taken an remarkable initiative regarding with the ensurance of submitting income tax return. NBR has determined some services which are being taken by a person or business entity needs to show the proof of submission of Income Tax Return; like acknowledgement Slip or Income Tax Clearance Certificate. Such kind of Services are Thirty Eight (38) types. This law has been enforced by the NBR according the under section 184A of the Income Tax Ordinance, 1984. 

“184A. Proof of submission of return required in certain cases. –

(1) Notwithstanding anything contained in this Ordinance, a person shall be required to furnish a proof of submission of return in the cases mentioned in sub-section (3).

(2) The proof of submission of return shall be-

(a) an acknowledgment receipt of return prescribed by the Board; or

(b) a system generated certificate containing name and Taxpayer’s Identification Number (TIN) of the person and the year for which return has been submitted; or

(c) a certificate issued by the Deputy Commissioner of Taxes containing name and TIN of the person and the year for which return has been submitted.

(3) The proof of submission of return shall be furnished in the cases of –

(i) applying for a loan exceeding Taka five lakh from a bank or a financial institution;

(ii) becoming a director or a sponsor shareholder of a company;

(iii) obtaining or continuing an import registration certificate or export registration certificate;

(iv) obtaining or renewal of a trade license in the area of a city corporation or paurashava;

(v) obtaining registration of co-operative society;

(vi) obtaining or renewal of license or enlistment as a surveyor of general insurance;

(vii) obtaining registration, by a resident, of the deed of transfer, baynanama or power of attorney or selling of a land, building or an apartment situated within a city corporation or a paurashava of a district headquarter or cantonment board, where the deed value exceeds Taka ten lakh;

(viii) obtaining or maintaining a credit card;

(ix) obtaining or continuing the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession;

(x) obtaining and retaining a license as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act. 1974 (LII of 1974);

(xi) obtaining or continuing the membership of any trade or professional body;

(xii) obtaining or renewal of a drug license, a fire license, environment clearance certificate, BSTI licenses and clearance;

(xiii) obtaining or continuing commercial and industrial connection of gas in any area and obtaining or continuing residential connection of gas in city corporation area;

(xiv) obtaining or continuing a survey certificate of any water vessel including launch, steamer, fishing trawler, cargo, coaster and dumb barge etc., plying for hire;

(xv) obtaining the permission or the renewal of permission for the manufacture of bricks by Deputy Commissioner’s office in a district or Directorate of Environment, as the case may be;

(xvi) obtaining the admission of a child or a dependent in an English medium school providing education under international curriculum or English version of national curriculum, situated in any city corporation, district headquarter or paurashava;

(xvii) obtaining or continuing the connection of electricity in a city corporation or cantonment board;

(xviii) obtaining or continuing the agency or the distributorship of a company;

(xix) obtaining or continuing a license for arms;

(xx) opening a letter of credit for the purpose of import;

(xxi) opening postal savings accounts of Taka exceeding five lakhs;

(xxii) opening and continuing bank accounts of any sorts with credit balance exceeding Taka ten lakhs;

(xxiii) purchasing savings instruments (Sanchayapatra) of Taka exceeding five lakhs;

(xxiv) participating in any election in upazilla, paurashava, zilla parishad, city corporation or Jatiya Sangsad;

(xxv) participating in a shared economic activities by providing motor vehicle, space, accommodation or any other assets.

(xxvi) receiving any payment which is an income of the payee classifiable under the head “Salaries” by any person employed in the management or administrative function or in any supervisory position in the production function;

(xxvii) receiving any payment which is an income of the payee classifiable under the head “Salaries” by an employee of the government or an authority, corporation, body or units of the government formed by any law, order or instrument being in force, if the employee, at any time in the income year, draws a basic salary of taka sixteen thousand or more;

(xxviii) receiving any commission, fee or other sum in relation to money transfer through mobile banking or other electronic means or in relation to the recharge of mobile phone account;

(xxix) receiving any payment by a resident from a company on account of any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service;

(xxx) receiving any amount from the Government under the Monthly Payment Order (MPO) if the amount of payment exceeds taka sixteen thousand per month;

(xxxi) registration or renewal of agency certificate of an insurance company;

(xxxii) registration, change of ownership or renewal of fitness of a motor vehicle of any types excluding two and three wheeler;

(xxxiii) releasing overseas grants to a non-government organisation registered with NGO Affairs Bureau or to a Micro Credit Organisation having licence with Micro Credit Regulatory Authority;

(xxxiv) selling of any goods or services by any digital platforms to consumers in Bangladesh.

(xxxv) submitting application for the membership of a club registered under Company Act, 1994 and Societies Registration Act, 1860 (Act No. XXI of 1860);

(xxxvi) submitting tender documents by a resident for the purpose of supply of goods, execution of a contract or rendering a service;

(xxxvii) submitting a bill of entry for import into or export from Bangladesh;

(xxxviii) submitting plan for construction of building for the purpose of obtaining approval from Rajdhani Unnayan Kartripakkha (Rajuk), Chittagong Development Authority (CDA), Khulna Development Authority (KDA) and Rajshahi Development Authority (RDA) or other concerned authority in any city corporation or paurashava;

(4) The Board may, by a general or special order, exempt any person from furnishing proof of submission of return.

(5) The person responsible for processing any application or nomination, or approving any license, certificate, membership, permission, admission, agency or distributorship, sanctioning any loan, issuing any credit card, allowing connection or operation, executing registration or making any payment shall not so process, approve, sanction, issue, allow, execute or make payment, as the case may be, unless the proof of submission of return is furnished as required under the provision of sub-section (1) or the person who is required to furnish the proof of submission of return provides a certificate from the Board that he is exempted from furnishing such proof.

(6) The person to whom the proof of submission of return is furnished shall verify the authenticity of it in the manner as may be specified by the Board.

(7) Where the person responsible for processing any application or nomination, or approving any license, certificate, membership, permission, admission, agency or distributorship, sanctioning any loan, issuing any credit card, allowing connection or operation, executing registration or making any payment, as the case may be, fails to comply with sub-sections (6) and (7), shall be deemed to be an assessee in default and be liable to pay a penalty not exceeding Taka ten lakh as imposed by the Deputy Commissioner of Taxes.”?

“184C. Displaying proof of submission of return.-

(1) An assessee having income from business or profession shall submit his return of income as required in section 75 and display the proof of submission of return as defined in section 184A at a conspicuous place of such assessee’s business premises.

(2) Where an assessee fails to comply with the provision of subsection (1), he shall be liable to pay a penalty of Taka not less than five thousand and not exceeding twenty thousand as imposed by the Deputy Commissioner of Taxes empowered to this end.”

Reference:

1. https://nbr.gov.bd/uploads/acts/Finance_act_2022.pdf

2. https://nbr.gov.bd/ 

Persons required to be registered for VAT

According to the Section No. – 04 of Value Added Tax and Supplementary Duty Act, 2012 following persons are required to be registered for VAT in Bangladesh:

(1) Irrespective of any central, or branch unit, each of the following persons shall, from the first day of a month, be required to be registered for VAT, namely—

     (a) a person whose turnover exceeds the registration threshold within a 12 (twelve)- month-period closing at the end of the month preceding that month; or

     (b) a person whose estimated turnover exceeds the registration threshold within the succeeding 12 (twelve)- month-period beginning at the start of the start of the preceding month.

(2) Notwithstanding anything contained in sub-section (1), every person carrying on the following economic activities of—
Has to be registered for VAT, if he—
     (a) manufactures any good subject to supplementary duty in Bangladesh; or

     (b) supplies any service subject to supplementary in Bangladesh;

Source: www.nbr.gov.bd

VAT Registration: Who are required to be registered for VAT

According to the Section Number 4 of the Value Added Tax and Supplementary Duty Act, 2012, all of the Persons or business entities don’t need to be registered for VAT. But, following persons or business entities are required to be registered for VAT: 

     (a) a person whose turnover exceeds the registration threshold within a 12 (twelve)- month-period closing at the end of the month preceding that month; or

     (b) a person whose estimated turnover exceeds the registration threshold within the succeeding 12 (twelve)- month-period beginning at the start of the start of the preceding month.

(2) Notwithstanding anything contained in sub-section (1), every person carrying on the following economic activities of—
Has to be registered for VAT, if he—
     (a) manufactures any good subject to supplementary duty in Bangladesh; or

     (b) supplies any service subject to supplementary in Bangladesh;

VAT Registration: Authority & Process

Ultimate Authority of VAT registration is National Board of Revenue (NBR) in Bangladesh. NBR has made digitalization of VAT registration process. If any one to make an application for VAT registration he or she will do that in the VAT Online Service or by going to eBIN registration process. NBR has started Online VAT Registration process. Required documents for VAT registration is also see here. You may contact with us. 

Monthly VAT Return Submission

Every VAT registered persons or entities must submit monthly VAT return by calculation VAT and deposited to the Govt. Treasury. For Monthly Online VAT return submission, we are here to help you.

VAT Digitalization

You may calculate your VAT by VAT Calculator. You can learn about VAT in the NBR website. You will find here all VAT acts. You also make VAT payment by using e-payment portal of VAT online payment. 

Section No. – 10: Persons required to be enlisted and their enlistment.—

(1) If a person, carrying on an economic activity, exceeds at the end of any quarter of a 12 (twelve)-month period, the enlistment threshold, but does not exceed the registration threshold, such person shall make, within 30 (thirty) days from the end of such a quarter, on such terms and in such manner as may be prescribed, an application to the Commissioner for enlistment as a turnover taxpayer.

(2) The Commissioner shall, after enlisting such person as a turnover taxpayer within such time, on such terms and in such manner as may be prescribed, issue a turnover tax certificate containing a business identification number.

Source: www.nbr.gov.bd

Section No. – 9: Cancellation of VAT registration.—

(1) If a registered person refrains from carrying on his economic activities, he may make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for the cancellation of VAT registration.

(2) A person, who continues to make taxable supplies, but does not require to remain registered any more, may, within such time, on such terms and in such manner as may be prescribed, may apply to the Commissioner for the cancellation of his registration:

 Provided that a person who is registered voluntarily under section 8 shall require remaining registered for at least one year.

(3) The Commissioner may, within such time, on such terms and in such manner as may be prescribed, cancel the VAT registration.

(4) If a registered person does not apply for the cancellation of VAT registration under sub-section (1), and if it appears to the Commissioner, on appropriate enquiry, that the VAT registration of such person is liable to be cancelled‚ he shall issue an order directing such person to make an application for the cancellation of VAT registration; and if no such application is made in accordance with such order‚ the Commissioner may‚ suo moto‚ cancel the VAT registration of such person.

(5) If, after the cancellation of a VAT registration of a person, it appears to the Commissioner that such person is required to be enlisted‚ then he may‚ suo moto, or upon an application‚ enlist such person as a turnover taxpayer.

(6) Where registration of a registered person is cancelled, he shall–

(a)  without much delay, refrain from using or issuing any tax invoice, integrated tax invoice and withholding certificate, credit note, debit note, etc; and

(b)  return the VAT registration certificate, and all certified copies thereof, to the Commissioner within such time as may be prescribed, and pay the arrear taxes, and file a final VAT return.

Source: www.nbr.gov.bd

Section No. – 8: Voluntary VAT registration.—

(1) Any person, making a taxable supply in the process of economic activities are not required to be registered, may voluntarily make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for VAT registration.

(2) The Commissioner shall, after registering such person within such time, on such terms and in such manner as may be prescribed, issue a VAT registration certificate containing a business identification number.

Source: www.nbr.gov.bd

Section No. – 7: Publication and preservation of a list of registered persons.—

(1) The Board shall, from time to time, prepare, in such manner as may be prescribed, a list of registered persons and publish , circulate and preserve such list.

(2) No person, whose name is not included in the published list, shall be considered a registered person.

(3) Every person, whose name is included in such list, shall be treated as a person registered under this Act.

Source: www.nbr.gov.bd

Cancellation of VAT registration

According to the Section No. – 9 of Value Added Tax and Supplementary Duty Act, 2012 following ways VAT registration will be cancelled in Bangladesh:

(1) If a registered person refrains from carrying on his economic activities, he may make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for the cancellation of VAT registration.

(2) A person, who continues to make taxable supplies, but does not require to remain registered any more, may, within such time, on such terms and in such manner as may be prescribed, may apply to the Commissioner for the cancellation of his registration:
Provided that a person who is registered voluntarily under section 8 shall require remaining registered for at least one year.

(3) The Commissioner may, within such time, on such terms and in such manner as may be prescribed, cancel the VAT registration.

(4) If a registered person does not apply for the cancellation of VAT registration under sub-section (1), and if it appears to the Commissioner, on appropriate enquiry, that the VAT registration of such person is liable to be cancelled‚ he shall issue an order directing such person to make an application for the cancellation of VAT registration; and if no such application is made in accordance with such order‚ the Commissioner may‚ suo moto‚ cancel the VAT registration of such person.

(5) If, after the cancellation of a VAT Registration of a person, it appears to the Commissioner that such person is required to be enlisted‚ then he may‚ suo moto, or upon an application‚ enlist such person as a turnover taxpayer.

(6) Where registration of a registered person is cancelled, he shall—

(a) without much delay, refrain from using or issuing any tax invoice, integrated tax invoice and withholding certificate, credit note, debit note, etc; and

(b) return the VAT registration certificate, and all certified copies thereof, to the Commissioner within such time as may be prescribed, and pay the arrear taxes, and file a final VAT return.

Source: www.nbr.gov.bd

Section No. – 6: VAT registration.—

(1) Every person required to be registered shall make, within such time, on such terms and in such manner as may be prescribed, an application to the Commissioner for VAT registration.

(2) The Commissioner shall, after registering such person within such time, on such terms and in such manner as may be prescribed, issue a VAT registration certificate containing a business identification number.

(3) If the application under sub-section (1) is not made as required under law, the Commissioner shall inform the matter in writing to the applicant.

Source: www.nbr.gov.bd

Section No. – 5: Registration of central, or branch unit.—

(1) Every person required to be registered for his economic activities shall have only one VAT registration for the central, and all the branch units.

(2) Notwithstanding anything contained in sub-section (1), a branch unit that maintains the records, and keeps the accounts, independently and separately from the central unit, may have a separate VAT registration.

(3) Every branch unit registered separately shall, for the purposes of this Act, be regarded as a separate taxpayer.

(4) Movement of goods or exchange of services from one branch unit to another separately registered branch unit of the said economic activity shall not be treated as supplies and, consequently, there shall arise no output tax liability or input tax credit claim.

Source: www.nbr.gov.bd

BIDA Investors Service

BIDA offers support and guidance on every turn of the path of investment. Here are few of the services that BIDA provides on a complimentary basis-

• Gives a comprehensive pre-investment information and counseling service
• Investors enjoys a faster immigration services and also viable to other welcome services
• Quick and hassle-free registration and approval of foreign, joint-venture and local projects.
• Help foreign nations to gain work permit quickly.
• Give instruction, guidance and approval in opening foreign companies branch, liaison and representative offices in Bangladesh.
• Give assistance in obtaining industrial plots.
• Facilitating utility connection ( gas, electricity, water, telecoms, sewerage etc) for industrial complex.
• Approve foreign loan suppliers’ credit, PAYE scheme etc.
• Give proper assistance, utility and facilities to set up a new business.
• Assist obtaining visa/IP/LP/IRC/Visa on arrival
• Provide assistance to gain warehousing license and import clearance
• Support is given in importing capital machinery and raw materials
• Help investors finding suitable suppliers, joint-venture and subcontractors partners.
• Give access and help make connection with important private and public organizations.
• Give quick consent to remittances of royalty, technical assistance fees and technical know-how.
• Arrange site visits for foreign investors.
• Coordinate and communicate between the foreign business community and other public agencies.
• Offers comprehensive information and advice on starting and maintain operations in Bangladesh.
• BIDA has an Online Registration System (ORS) to make registration quick and effective.
• BIDA also provide Online Service Tracking (BOST)

Investment made in Public Private Partnership (PPP) enjoy 100% tax exemption for certain projects on capital gain and income.

Investors get 100% tax cut from Nationwide Telecommunication Transmission Network and Information Technology Enabled Services and software development also enjoys the same tax cut.

Interest paid on foreign loan get preferential tax exemption.

Royalties, technical assistance fees, technical knowhow, facilities  for repatriation get tax cut.

Income gets 50% tax exemption if its derived from export.

2.Machinery and plants enjoys accelerated Depreciation.

3. Raw materials used for producing export goods and also capital machines that are used for export goods get on exemption on import and custom tax.

4. Investors get a refund in tariff on import of raw material for export if it’s already paid.

5. Investors enjoys double taxation prevention if the product destined to export in countries has an double taxation voidance treaty with Bangladesh.

6. Investors are allowed to own 100% of the project they invest in.

7. Export oriented industries and large import for local selling gets bonded warehousing facilities.

8. Profits and dividend accumulating to foreign investment might be transferred in full. Full repatriation of capital invested from foreign sources will also be allowed. If foreign investors reinvest their dividends and or retained earnings, those will be treated as new investment.

9. The Foreign Private Investment (Promotion & Protection) Act. 1980 guarantees legal protection to foreign investment against expropriation and nationalization in Bangladesh.

10. International and local laws protect the Intellectual Property right.

11. In order to protect the investment bilateral and multilateral investment agreements are lawfully enforces.

12. Foreign nationals and employees easily access work permits to work on projects and no restriction is enforced on them.

13. Foreign Investors are permitted to work with local banks to secure capital.

14. 100% FDI or Joint Venture FDIs are permitted to partake in the primary and secondary stock markets.

15.100% FDI, Joint Ventures Partnerships, PPPs, Non-equity mode (Technology transfer, licensing Franchising, contracting etc.), and Foreign Lending are accepted.

16.Local and foreign investment get equal treatment for business.

Here are a list of Industrial undertakings which are eligible to Tax Holiday and Tax Exemption:

• Active pharmaceuticals ingredient industry and radio-pharmaceuticals industry;
• Automobile manufacturing industry;
• Barrier contraceptive and rubber latex;
• Basic chemicals or dyes and chemicals;
• Basic ingredients of electronic industry (e.g. resistance, capacitor, transistor, integrator circuit);
• Bi-cycle manufacturing industry;
• Bio-fertilizer;
• Biotechnology;
• Boilers;
• Brick made of automatic Hybrid Hoffmann Kiln or Tunnel Kiln technology;
• Compressors;
• Computer hardware;
• Energy efficient appliances;
• Insecticide or pesticide;
• Petro-chemicals;
• Pharmaceuticals;
• Processing of locally produced fruits and vegetables;
• Radio-active (diffusion) application industry (e.g. developing quality or decaying polymer or preservation of food or disinfecting medicinal equipment);
• Textile machinery;
• Tissue grafting;
• Tire manufacturing industry;

Fiscal & Non Fiscal Incentives

Fiscal Incentives:

BIDA also providing fiscal incentives in number of ways. For example:

An industrial undertaking set-up in Bangladesh between the first day of July, 2011 and the thirtieth day of June, 2019 (both days inclusive) shall enjoy tax exemption on profits, income on this endeavor.

Dhaka and Chittagong divisions except Dhaka, Gazipur, Mymensingh, Narayanganj, Chittagong, Bandarban ,Rangamati, and Khagrachari districts will enjoy certain tax cut for five years from the beginning with the month of beginning of commercial production.

          For first and second year the tax exemption will be 100%

          For third year the tax exemption will be  60%

          For fourth year the tax cut will be 40%

          For fifth year the tax exemption  will be 20%

Non Fiscal Incentives:

Foreign entities looking to invest in Bangladesh offer waives restriction on land ownership.

Facilitates and offer no restriction on manufacturing activities.

Provide comprehensive and enticing tax incentives on overall package

Facilitates easy obtain of visa and work permits for foreign nationals.

Give inclusive and informative advice and assistance to set up business in Bangladesh and also offer assistance in post business support services.

BIDA helps potential investors by providing comprehensive investment opportunism in Bangladesh and assist procuring necessary official documents and permits in the most hassle free way possible.

BIDA also synchronized the founding of  One-Stop Service Center. Here are some of the functions of One-Stop Service Center-

• Trade License from respective city corporation and local government body are given within 48 hours, assuming all required documents are provided. Bangladesh Investment Development Authority with local government division insures this service.
• Company registration from Joint Stock Register’s office company registration complete within 48 hours.
• Registration of Bangladesh Investment Development Authority is complete within a day, assuming all required documents are provided.
• Electricity connection’s result are given within 10 days after receive the application from BIDA where representative of power development board authority is working.
• Environmental certificate are given within 10 days from BIDA where respective officer from Environment Department are working.
• From Bangladesh Investment Development Authority representative of Titas Gas Authority the result of gas connection are given within 10 days from the date of application received.
• Foreign loan borrowing application disposed within 30 days assuming all required documents are provided.
• Tax related complication is taken from BIDA by respective National Board of Revenue officer after getting application from entrepreneur and result are given within 10 days.
• Online services also provided by BIDA.
• Assistance for Land acquire are supported by BIDA.