Finance Bill 2015

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Trade License No: 01-08320
Tax Identification No: 398380629238
SYNOPSIS OF FINANCE BILL 2015
GOVT. SETS TARGET OF NBR EARNINGS TK 1,76,370 CRORE- AN INCREASE OF
30.62% FROM THE OUTGOING YEARS REVISED TARGET. NBR EARNINGS WILL
BE COMPRISED OF INCOME TAX 36.84%, VAT 36.44% & IMPORT DUTY &
OTHERS 26.72%. THE PAPER IS PREPARED ON THE BASIS OF PROPOSED
BUDGET PRESENTED BY FINANCE MINISTER AMA MUHITH ON JUNE 4, 2015
BEFORE PARLIAMENT FOR THE NEXT FISCAL YEAR (FY 2015-2016)
INCOME TAX
01. Relief for Individual Taxpayers:
Tax-free income ceiling raised for General citizen of TK. 30,000/Tax-free income ceiling raised for women & senior citizen of TK. 25,000/Tax-free income ceiling raised for physically handicapped of TK.25,000/Tax-free income ceiling raised for War-wounded gazetted freedom
FightersTk 25,000/-
02. Tax rate becomes more digressive.

Types of Tax payer
Existing
(2014-2015)
Proposed
(2015-2016)
General Tax Payer
Tk. 2,20,000/-
Tk. 2,50,000/-
Women tax payer
Tk. 2,75,000/-
Tk.3,00,000/-
Senior Citizen (tax payers of 65

years of age and above)
Physically handicapped
Tk. 2,75,000/-
Tk. 3,00,000/-
Tk. 3,50,000/-
Tk. 3,75,000/-
War-wounded gazetted freedom

fighters
Tk. 4,00,000/-
Tk. 4,25,000/-
Corporate Address: 83/ B Shidheswary Circular Road, Malibagh More, Mouchak Tower
(Opposite to Hosaf Market), 4th Floor, Dhaka-1219, Bangladesh.
Individual Tax Rate

Total Income
Tax Rate
On first, Tk.2,50,000/- of taxable income
Nil
On next, Tk.4,00,000/- of taxable income
10 %
On next, Tk.5,00,000/-of taxable income
15 %
20 %
25 %
On the balance of taxableincome
30%
03. Minimum Tax: Minimum Tax has been extended to TK 4,000/-.

04. Surcharge:
Relief for Wealthy people.
The ceiling of Net wealth free from Surcharge has been extended to TK 2.25 Crore.
Introducing Minimum Surcharge of TK 3,000/-.
Having Net Wealth
TK 2.25 Crore to 10 Crore
TK 10 to TK 20
TK 20 Crore to TK 30 Crore
Over TK 30 Crore
Rate of Surcharge
10% Surcharge on Payable Tax
05. Income Tax Credit/ Tax Rebate is same as before.
Investment Ceiling in taka

Investment ceiling as percentage
of totalincome
% of Tax rebate
Existing
1.5 crore
30%
Remaining Unchanged
1.5 crore
30%
15%
15%
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06. No more discrimination between theEmployees of Public and Private sector: Govt.
employees salary, allowances, Bonus& Festival Bonus are subject to taxation.
07. Tax free limit of Medical Allowance has been fixed up as 10% of Basic Salary and
1,20,000/- whichever is lower.
08. Tax free limit of House Rent Allowance has been fixed up as 50% of Basic Salary and
25,000/- per month whichever is lower
09. Conveyance Facilities: In case of employers provided conveyance facilities, income to be
added 5% of Basic Salary or 60,000/- whichever is higher.
10. Tax free limit of any income as gratuity has been fixed up to taka two crore fifty lakh
received by an assesse.
11. Tax free has been made for income received by a laborer from workers participation fund.
But taxable for income received by an employee of management level from workers
participation fund.
12. Scope of whitening black money is existed as before: 19BBBBB (Special tax treatment
in respect of investment in residential building and apartment) is existed as follows:
Tax on Investment in House/ Flat
Location of the Property
Gulshan Model Town, Banani, Baridhara,

Motijheel Commercial Area and Dilkusha
Commercial Area of Dhaka.
Dhanmandi Residential Area, Defence Officers
Housing Society (DOHS), Mahakhali, Lalmatia
Housing Society, Uttara Model Town,
Bashundhara Residential Area, Dhaka
Cantonment, Kawran Bazar, Bijaynagar,
Segunbagicha, Nikunja of Dhaka and
Panchlaish, Khulshi, Agrabad and Nasirabad
Area of Chittagong.
Other areas of City Corporation
Paurasabha of any district headquarters
Other Areas including Upazilla
More than one house/flat
Rate on per
sq. meter up
to 200 Sq.
meter
5,000/-
Rate on per
sq. meter
above 200
Sq. meter
7,000/-
4,000/-
5,000/-
2,000/600/400/-
3,000/800/600/-
Additional
20%
Additional
20%
19BBBBBB (Special tax treatment in respect of investment in land property) is also existed:
In Case of Plot/land Purchase:
Tax Rate on Total Value
10%
In case of more than one Plot/Land additional
20%
tax on payable sum
13. Reduction of Tax Rate for Company

Tax rate for public limited company except Merchant bank, Mobile phone operator,
& cigarette manufacturers is reduced from 27.5% to 25%.
Tax rate of publicly traded company of bank, insurance&financial institute cut 2.5%.
Hence, 40%.
Minimum turnover tax rate remain same as 0.30. But the rate is reduced to 0.10% on
receipt for an industrial undertaking engaged in manufacturing goods for first three
years. (Amendment of U/S 16CCC, ITO 1984).
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Company Tax Payers
Previous Rate
Current Rate
Publicly Traded Company

Non-Publicly Traded Company
Public Traded (Bank, Insurance and Financial
Institution ,other than Merchant
Bank)
Non-Public Traded (Bank, Insurance and Financial
Institution ,other than Merchant
Bank)
27.5%
35%
42.5%
25%
35%
40%
42.5%
42.5%
Merchant Bank
Publicly Traded Cigarette
37.5%
40%
37.5%
45%
Non-Publicly Traded Cigarette

Manufacturing Company
45%
45%
Publicly Traded Mobile Phone Company
40%
40%
Non-Publicly Traded Mobile Phone

Company
45%
45%
Dividend Income
20%
20%
0.30%
0.30%
Minimum Turnover Tax
(0.10% on receipt
for an industrial
undertaking
engaged in
manufacturing
goods for first
three years.)
14. Tax rate for Poultry, Cattle & Hatchery:

Particulars
Income from poultry
Previous
0%
Income from poultry feed, Cattle, seed, Milk, frog, 3%

apiculture, sericulture & Floriculture
Duck & Hatchery
General Tax Rate
New
First 10 Lac-3%,
Next 20 Lac-10%,
Rest-15%
First 10 Lac-3%,
Next 20 Lac-10%,
Rest-15%
First 10 Lac-3%,
Next 20 Lac-10%,
Rest-15%
15. Income Year: Uniform the period of income year to reduce tax evasion.
I.
The period of Income year for all classes of assesse EXCEPT Bank, Insurance &
NBFI is proposed to fix from 1st July to 30th June. Fiscal year to be treated as income
year.
II.
Calendar Year (1st January to 31st December) to be treated as income year for Bank,
Insurance & NBFI.
16. Charge of additional tax (16B): Any person employs any individual other than
Bangladeshi Citizen without prior approval of BOI or competent authority, such person
shall be charged additional tax at the rate of 50% of tax on his income or TK 5,00,000/whichever is higher in addition to tax payable under this ordinance.
17. Perquisite: Perquisite has been extended to TK 4,50,000/- (U/S 30E).
18. Set off: No loss can be set off against income of manufacturing of Cigarette.
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19. TDS for resident Taxpayers for following services:
SL. No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
Description of payment
Catering service
Cleaning service
(a)
commission
(b)
gross receipts
Collection and recovery Agency
(a)
Commission
(b)
Gross Receipts
Contract or toll manufacturing
Credit rating agency
Event management
(a)commission
(b)gross receipts
Indenting commission
Meeting fees, training fees or honorarium
Mobile network operator, technical support service provider
or service delivery agents engaged in mobile banking
operations
Motor garage or workshop
Printing service
Private container port or dockyard service
Private security service provider(a) commission
(b) gross receipts
Product processing charge
Shipping agency commission
Stevedoring/berth operation commission
Supply of manpower
(a)commission
(b)gross receipt
Transport provider
Any other service which is not mentioned
in Chapter VII of this Ordinance and is not
a service provided by any bank, insurance
or financial institutions
Rate of deduction
10%
10%
1.5%
10%
1.5%
10%
10%
10%
1.5%
7.5%
10%
10%
5%
3%
5%
10%
1.5%
10%
5%
10%
10%
1.5%
3%
10%
20. TDS for non resident taxpayers:

Sl No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Service Sector
Salary/ Honorarium
Capital gain
Rate
30%
(a) From capital Asset

(b) By a company or firm if such gain arises
from securities listed with any stock
exchange is in Bangladesh which is not
exempted from tax in the country of
such non-resident
Dividend
(a) Company
(b) Any other person not being a company
Artist/Actor/Player
Interest/ Royalty/ Commission
Management/ Event Management
Legal service
Accounting/Tax Consultancy
Professional Service
Consultancy Fees
Certification fees
PSI Fees
Architecture/ interior/ landscape design
Rent of machineries
Air/ Water Transport
Courier Business
Advertising Making
Advertising Broadcasting
Satellite fee/ Airtime/ Frequency
Insurance Premium
Contractor/ Sub contractor
Survey or Oil or Gas exploration
Exploration in petroleum operations
Any service for making connectivity between
oil or gas field and its export point
Any other payments
15%
10%
20%
30%
30%
20%
20%
20%
20%
20%
30%
30%
30%
20%
15%
7.5%
15%
15%
20%
20%
10%
5%
5.25%
5.25%
5.25%
30%
21. 52JJ Collection of tax from travel agent:

Any person responsible for paying on behalf of any airlines to a resident any sum by way of
commission or discount or incentive bonus or any other benefits convertible into money called by
whatever name for selling tickets of an airline or for carrying cargo by air shall deduct or collect
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advance tax at the rate of zero point three zero per cent (0.30%) of the total value of the tickets of
the airlines or any charge for carrying cargo by air at the time of payment to such resident.
22. Collection of tax from manufacturer of soft drink is 4% 52S
23. Collection of tax from export of certain items is 1% INSTEAD OF .80% U/S 52S.
24. Collection of tax from export of any goods except certain items is 1% INSTEAD OF .80%
U/S 53BB
25. Deduction of tax from commission or remuneration paid to agent of buyer is 10%
INSTEAD of 7.5% U/S 53BBBB
26. Deduction at source from interest on saving deposits and fixed deposits U/S 53F
27. Deduction of tax from advertising Bill is 4% instead of 3% U/S 53K.
28. 15% TDS imposed on Rent compensation and signing money by Real Estate Developer to
Landlord
29. Shrinkage the power of time extension: Deputy Commissioner of Taxes may extend the
date up to two months (instead of three months) from the date so specified and he may
further extend the date up to two months (instead of three months) with the approval of the
inspecting Joint Commissioner. U/S 75
30. Report from an accountant to be furnishedThe Deputy Commissioner of Taxes may, by notice in writing, require that a person who has
entered into international transaction or transactions the aggregate value of which, as recorded in
the books of accounts, exceeds three crore taka during an income year shall furnish within the
period as may be specified in the notice and in the form and manner as may be prescribed, a
report from a Chartered Accountant or a Cost and Management Accountant regarding all or of a
part of the information, documents and records furnished under section 107E.
31. Penalty for failure to comply with the provision of section 107EE- Where any person
fails to comply with the provision of section 107EE of this Ordinance, the Deputy
Commissioner of Taxes may impose upon such person a penalty not exceeding two per cent
(2%) of the value of each international transaction entered into by such person. U/S 107HH.
Provided that such penalty shall not exceed(a) in case of an assessee, being an individual, whose income was not assessed previously five
thousand taka;
(b)in case of an assessee, being an individual, whose income was assessed previously, fifty
per cent (50%) of the tax payable on the last assessed income or taka one thousand,
whichever is higher u/s 124.
32. New provision has inserted as section129B (Penalty for furnishing fake audit report)
Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of
Taxes, the Appellate Joint Commissioner, the Commissioner (Appeals) or the Appellate
Tribunal is satisfied beyond reasonable doubt that any audit report furnished by an assessee
along with thereturn of income or thereafter for any income year is not signed by a chartered
accountant or is believed to be false, such authority or the Tribunal, as the case may be, shall
impose upon such assessee a penalty of a sum of one lakh taka for that income year.
33. Punishment for furnishing fake audit report.
A person is guilty of an offence punishable with imprisonment for a term which may extend to
three years, but shall not be less than three months, or with fine upto taka one lakh, or both, if
hefurnishes along with the return of income or thereafter any audited statement of accounts
which is false or does not conform with signature of a chartered accountant purported to be
signatory to such statement(U/S 165AA)
34. Punishment for unauthorized employment.
A person is guilty of an offence punishable with imprisonment for a term which may
extend to three years, but shall not be less than three months, or with fine upto taka five lakh, or
both, if heemploys or allows to work any individual not being a Bangladeshi citizen without
prior approval from Board of Investment or any competent authority of the government as the
case may be.
35. Depreciation Rate for imported computer software is 10%.
36. Depreciation allowance for purchase of motor vehicles up to TK 25,00,000/-.
37. Approval of Obsolescence allowance for Building, Machinery, Plant and other fixed
assets.
38. Tire, Automobile, Brick building under Tunnel Klin method and Bi-cycle to be enlisted as
industrial undertaking.
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39. Income from dividend receivedfrom a company listed in any stock exchange in Bangladesh
up to TK 25,000/- instead of TK 20,000/-.
40. Any income received by an assessee from Wage earners development bond, US dollar
premium bond, US dollar investment bond, Euro premium bond, Euro investment bond,
Pound sterling investment bond or Pound sterling premium bond is tax free.
41. Tax holiday period of Income from software development or Nationwide
Telecommunication Transmission Network (NTTN) or Information Technology enabled
services (ITES) has been extended up to June, 2024.
42. Tax holiday period of income derived from the export of handicrafts has been extended up
to June 2019.
43. Reduced tax rate as 15% for income derived from Textile and Jute products has been
extended up to June 2019.
44. 10% of paid up capital and undistributed profit can be utilized for purchasing motor
vehicles.
45. TDS has been withdrawn from local purchase of Computer, computer accessories, Jute, and
Cotton.
46. Authorize representative:
Chartered Accountant and Cost & Management Accountant of ICAEW, Scotland, London,
Pakistan and India cannot be act as authorize representative u/s 174.
47. Income is Tax free for MPO listed educational institutions, public universities, ICAB,
ICMAB, ICSB. But, 10% tax on bank interest will be done which be treated as final
settlement.
48. 12 Digit TIN Certificate is mandatory for guardian of English Medium & Standard School
students.
49. Capital gain tax to be treated through Lease deed and possession sale deed by other authority
except Government.
Synopsis of VAT in the light

of Finance Bill2015 is
upcoming.
Compiled, Edited & Prepared

by:
Md. Monzurul Karim (CMA
Final) ITP;
Imdadul Haque Milon ITP,
S. M. Rabby ITP;
Special Credits to:

Mr. Shafiqul Islam Uzzal, VAT
Consultant;
Kamran Yousuf, Consultant of
Corporate Affairs
Reviewed by:
Advaocate Jubaer
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Taxes are what we pay

for a civilized society.
OLIVER WENDELL HOLMES, Compania General de Tabacas de Filipines v. Collector of the Internal
Revenue, 1904
.
.

Finance Bill 2015

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02. Tax rate becomes more digressive.

General Tax Payer

Women tax payer

Senior Citizen (tax payers of 65

War-wounded gazetted freedom

Individual Tax Rate

On first, Tk.2,50,000/- of taxable income

On next, Tk.4,00,000/- of taxable income

On next, Tk.5,00,000/-of taxable income

On next, Tk.6,00,000/- of taxable income

On next, Tk.30,00,000/- of taxable income

On the balance of taxableincome

03. Minimum Tax: Minimum Tax has been extended to TK 4,000/-.

05. Income Tax Credit/ Tax Rebate is same as before.

Investment Ceiling in taka

Dial: +88 01717 71 18 90

Gulshan Model Town, Banani, Baridhara,

13. Reduction of Tax Rate for Company

Dial: +88 01717 71 18 90

Publicly Traded Company

Non-Publicly Traded Cigarette

Publicly Traded Mobile Phone Company

Non-Publicly Traded Mobile Phone

Minimum Turnover Tax

14. Tax rate for Poultry, Cattle & Hatchery:

Income from poultry feed, Cattle, seed, Milk, frog, 3%

General Tax Rate

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20. TDS for non resident taxpayers:

(a) From capital Asset

21. 52JJ Collection of tax from travel agent:

Dial: +88 01717 71 18 90

Dial: +88 01717 71 18 90

Synopsis of VAT in the light

Compiled, Edited & Prepared

Special Credits to:

Dial: +88 01717 71 18 90

Taxes are what we pay

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