tax policy in bd in fiscal year 2015-16

Presented by SHEIKH ABIR AHMED

ID:16411028

RECENT TAX POLICIES OF BANGLADESH

Discussion PointsWhat is Tax?

TAX Policy: History

Types of Tax ; Difference

between Tax & VAT

Tax Sectors

Recent Tax Policies in

Bangladesh

Conclusion

TAX A sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes, property, sales, etc.

A vital part of govt. earningGovt. use for the betterment of the people

TAX POLICY: HISTORY

•Ancient Egypt around 3000-2800 BC•Corvée & Tithe• In Bible also described about early Taxation•Persian Empire, Darius I, 500 BC• Its became vital part of govt. in 18th century•Bangladesh adopted after independence

Types of TAXDirect Tax

IncomeWealth

Gift

Indirect TaxCustom Duties

ExciseSales

Service

TAX SectorsSalaries

Interest on securities

Income from house property

Income from agriculture

Income from business or profession

Capital gains

Income from other sources.

Recent Tax Policies in Bangladesh

INCOME RATE

1st Tk.. 250,000 Nil

Next Tk. 400,000 10%

Next Tk. 500,000 15%

Next Tk. 6,00,000 20%

Next Tk. 30,00,000 25%

Amount over Tk. 47,50,000 30%

Any income of an individual being a non-resident foreigner 30%

Minimum Income tax payable by individual taxpayer:Dhaka & Chittagong City Corporation : Tk. 5,000Other City Corporation : Tk. 4,000Other areas : Tk. 3,000

Type of TaxpayersTax free Income Limit

Last Year This Year

Individual 220,000 250,000

Women and 65 above aged taxpayers 275,000 300,000

Retarded taxpayers 350,000 375,000

Liberation war wounded gazeted freedom fighters 400,000 425,000

Recent Tax Policies in Bangladesh

•SURCHARGE FOR INDIVIDUAL TAXPAYER BASED ON NET WEALTH:

•More than 2.25 crore but not more than 10 crore – 10%

•More than 10 crore but not more than 20 crore – 15%

•More than 20 crore but not more than 30 crore – 20%

•More than 30 crore – 25%

•Minimum surcharge payable is Tk. 3,000.

Recent Tax Policies in Bangladesh

Recent Tax Policies in Bangladesh

COMPANY 2014-15 2015-16  

Publicly Traded Company 27.50% 25%

Publicly traded Co. declaring at least 30% dividend 24.75% 25%

Publicly traded Co. declaring less than 10% dividend 35% 25%

Non-publicly traded company 35% 35%

Bank, Insurance & Financial Institute:Listed & 4th Generation Banks and FIsNon-listed

42.50%42.50%

40.00%42.50%

Company Last Year   

This Year

Merchant Bank 37.50% 37.50%

Cigarette: Non Publicly TradedPublicly Traded

45%40%

45%45%

Cellular Phone: Non Publicly TradedPublicly Traded

45%40%

45%40%

Minimum Tax payable on gross turnover 0.30%

0.30%(0.10% in first three years)

CORPORATE TAX RATE- 1 CORPORATE TAX RATE -2

Conclusion