Content Overview
Content Overview
- Tax Year Duration in Bangladesh
- Filing Deadlines for Individuals and Companies
- Special Provisions for Foreign Companies
- Tax Return Submission Process
- Penalties and Compliance Issues
- Tips for Foreign Investors
1. Tax Year Duration in Bangladesh
In Bangladesh, the official accounting or income year for personal income tax runs from July 1 to June 30. This tax year applies to most individual taxpayers and local businesses.
2. Filing Deadlines for Tax Returns
Tax returns must be filed by January 15 of the following calendar year for those whose accounting year ends on June 30. For companies and entities whose accounting year ends on December 31, the deadline is July 15.
3. Special Provisions for Foreign Companies
Foreign-owned companies or companies with significant foreign equity participation may use a different accounting year, usually aligned with their parent company’s reporting schedule. However, prior approval from the National Board of Revenue (NBR) is typically required.
4. Tax Return Submission Process
Taxpayers can file returns through:
- Online Portal: The NBR’s e-filing system allows convenient digital submissions.
- Manual Submission: Returns can also be submitted to the local tax circle office in person.
Taxpayers need to submit necessary documentation including TIN (Taxpayer Identification Number), proof of income, and tax payment receipts.
5. Penalties and Compliance
Failure to file tax returns by the stipulated deadline may result in financial penalties. Deliberate tax evasion can attract severe legal consequences including audits and criminal charges.
6. Tips for Foreign Investors
Foreign individuals or businesses operating in Bangladesh should ensure compliance with local tax rules:
- Consult a tax advisor to understand your obligations.
- Maintain transparent records of remittance and local earnings.
- Track currency exchange and regulatory updates from Bangladesh Bank and NBR.
Conclusion
Personal income tax compliance in Bangladesh requires a clear understanding of the tax year, deadlines, and processes. Whether you’re a resident or a foreign entity, staying updated with NBR’s requirements ensures smoother financial operations and avoids penalties.
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