Download Tax Deduction at Source 2015-2016

Important withholding tax at source
Head of
Withholding
Withholding
Authority
WHT Rates
Salaries
Any person responsible
for making payment
Average rate applicable
Payment to contractors &
sub-contractors
Any person responsible
for making payment
Upto Tk. 2,00,000- nil
2,00,001- 5,00,000- 1%
5,00,001- 15,00,000- 2.5%
15,00,001- 25,00,000- 3.5%
25,00,001- 3,00,00,000-4%
> 3,00,00,000
– 5%
In case of oil supplied by oil marketing companies:
Up to Tk. 200,000 Nil
More than Tk. 200,000 - 0.60%
Dealer or agent of oil marketing companies ---- - 1%
Supply of oil by oil refinery
- -3%
Supply of Gas by Gas transmission company----3%
Supply of Gas by Gas distribution company------3%
1
Rate of WHT at Source
Head of
Withholding
Withholding
Authority
WHT Rates
Fees for Doctors
The PO of a company or
the CEO of a NGO or trust
responsible for making
payment
10%
Royalty or Technical
know how fee
Government, corporation,
body, company, Bank,
Insurance, co-operative ,
NGO etc
10%
House Rent
Government, corporation,
body, company, Bank,
Insurance, co-operative ,
NGO, School, College,
University, Hospital,
Clinic, Diagnostic Centre
etc
5%
2
WHT on certain services
Head of Withholding
Withholding
Authority
Indenting Commission
Any person responsible for
making payment
Shipping Agency Commission
Any person responsible for
making payment
The Government or any other
authority, corporation or body,
company, any NGO, or any
school or any college or any
university or any hospital or
any clinic or any diagnostic
centre
Catering Service
WHT Rates
7.5%
5%
10%
Cleaning service
-Do-
Commission- 10%
Gross- 1.50%
Collection and recovery
agency
-Do-
Commission- 10%
Gross- 1.50%
3
WHT on certain services……
Head of Withholding
Withholding
Authority
WHT Rates
Contract or toll manufacturing
The Government or any other
authority, corporation or body,
company, any NGO, or any
school or any college or any
university or any hospital or
any clinic or any diagnostic
centre
10%
Credit rating agency
-Do-
10%
Event management-
-Do-
Commission- 10%
Gross- 1.50%
Meeting or training fees or
remuneration
Mobile
network
operator,
technical
support
service
provider or service delivery
agents engaged in mobile
banking operations
-Do-
10%
-Do-
10%
4
WHT on certain services……
Head of Withholding
Withholding
Authority
WHT Rates
The Government or any other
authority, corporation or body,
company, any NGO, or any
school or any college or any
university or any hospital or
any clinic or any diagnostic
centre
5%
Printing service
Private container port or
dockyard service
-Do-
3%
-Do-
5%
Private security
provider-
-Do-
Commission- 10%
Gross- 1.50%
-Do-
10%
Motor
garage
workshop
or
service
Product processing charge
5
WHT on certain services……
Head of Withholding
Withholding
Authority
Stevedoring/
Berth The Government or any other
authority, corporation or body,
operation commission
WHT Rates
10%
company, any NGO, or any
school or any college or any
university or any hospital or
any clinic or any diagnostic
centre
Supply of manpower-
-Do-
Commission- 10%
Gross- 1.50%
Transport provider
-Do-
3%
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
-Do-
10%
6
Rate of WHT at Source
Head of Withholding
Withholding
Authority
WHT Rates
C&F agency commission
Commissioner of Customs
10%
Biri manufacturing
Any person responsible for
selling banderoles to any
manufacturer of cigarettes
10% of the value of the
Banderoles
Cigarettes manufacturing
VAT Authority
Compensation against
acquisition of property
Any person responsible for
payment of such compensation
Interest on Savings Certificates Any person responsible for
except Wage Earners Bonds
making payment
3% of MRP
2%- City corp, Pauroshova and
Cant board
1% - outside areas
5%
7
Rate of WHT at Source
Brick Manufacturer
Any person responsible for
issuing permission or renewal
of permission for manufacture
of bricks
Tk. 45,000 for one section
brick field
Tk.70,000 for one and half
sections brick field
Tk. 90,000 for two section
brick field
Tk. 150,000 for automatic
brick field
LC Commission
Any person responsible for
opening of LC
Renewal of Trade License
City Corporation or
Pauroshova
Freight forwarding agency
commission
Any person responsible for
making payment
15%
Rental Power Company
BPDB during payment to any
power generation company
6%
5%
Tk. 500 Dhaka & Ctg City
corp
Tk. 300 in other city corp &
puroshova in dist headquarters
Tk. 100 in other pouroshova
8
Rate of WHT at Source
Head of Withholding
Withholding
Authority
WHT Rates
Services from Convention
Hall, Conference Centre etc
Corporation, Body, Authority,
N.G.O, University, College etc
5%
Income from foreign person
Bank/ Financial Institution
10%
Import
Commissioner of Custom
- 5% (General Rate)
- 2% (Petroleum product, MS
Rod, Hide & Skin and Cell Phone
etc)
- Tk. 800 per ton for Scrape ,
billet etc
Shipping business of a resident
Commissioner of Custom
5% of total freight if services
rendered to one foreign country
3% of total freight if services
rendered to 2 or more foreign
countries
9
Rate of WHT at Source
Head of Withholding
Withholding
Authority
WHT Rates
Export of manpower
DG, Bureau of Manpower,
Employment and Training
10%
Export of Knit-wear and Woven
garments , terry towel, jute
goods, frozen food, vegetables,
leather goods, packed food
Bank
0.80%
(reduced to 0.60% till June 2016)
Any other Export
Bank
0.80%
(reduced to 0.60% till June 2016)
Member of Stock Exchange
CEO, Stock Exchange
Goods or property sold by
public auction
Any person making sale
0.05%
5% of sales
10
Rate of WHT at Source
Head of Withholding
Withholding
Authority
WHT Rates
Payment to actors, actress,
singers, film directors, drama,
advertising etc
Person responsible for making
payment
10%
(No TDS up to taka 10,000)
Commission, Discount or Fees
Any person being a
corporation, body or company
10%
Deemed distribution
commission
Any person being a
corporation, body or company
3% of difference between
MRP and traded price
Buying Agency commission
Bank
10%
Interest on savings and fixed
deposits
Bank
10%
15% (if no e-TIN)
10% for public university,
educational Institutions, ICAB,
ICMAB and ICSB
11
Income Tax on sale of land –
Commercial Areas- Schedule (a)
SL No.
Name of the commercial area or areas
Rate of tax per katha (1.65 decimal)
1.
Gulshan, Banani, Motijheel, Dilkhusha, North 4% of the deed value or
South Road, Motijheel Expansion areas and 10,80,000/- whichever is higher
Mohakhali of Dhaka
taka
2.
Karwan Bazar of Dhaka
4% of the deed value or taka 6,00,000/whichever is higher
3.
Agrabad and CDA Avenue of Chittagong
4% of the deed value or taka 3,60,000/whichever is higher
4.
Narayanganj, Banga Bandhu Avenue, Badda, 4% of the deed value or taka 3,60,000/Sayedabad, Postogola and Gandaria of Dhaka
whichever is higher
5.
Uttara
Sonargaon
Janapath,
Shahbag, 4% of the deed value or taka 6,00,000/Panthapath, Banglamotor, Kakrail of Dhaka
whichever is higher
6.
Nababpur and Fulbaria of Dhaka
4% of the deed value or taka 3,00,000/whichever is higher:
For flat on the land, an additional tax of taka 600/- (six hundred) per square meter or
four per cent of the deed value of such flat, whichever is higher is payable.
12
AIT on sale of land - Schedule (b)
SL No.
1.
Name of the area or areas
Rate of tax per katha (1.65
decimal)
Uttara (Sector 1-9), Khilgaon rehabilitation area (beside 4% of the deed value or taka
100 feet road), Azimpur, Rajarbagh rehabilitation area 90,000/- whichever is higher
(beside bishwa road), Baridhara DOHS, Bashundhara
(Block: A–G), Niketon of Dhaka, Agrabad, Halishohar,
Panchlaish, Nasirabad, Mehedibag of Chittagong
2.
Gulshan, Banani and Baridhara of Dhaka
4% of the deed value or taka
3,00,000/- whichever is higher
3.
Dhanmondi of Dhaka
4% of the deed value or taka
2,40,000/- whichever is higher
4.
Kakrail, Segunbagicha, Bijoynagar, Eskaton, Green 4% of the deed value or taka
Road,
Elephant
Road,
Fakirapool,
Arambagh, 1,80,000/- ever is higher
Maghbazar (within one hundred feet of main road),
Tejgaon
Industrial
Area,
Sher-e-Banglanagar
Administrative Area, Agargaon Administrative Area,
Lalmatia, Mohakhali DOHS, Cantonment of Dhaka and
Khulshi of Chittagong
13
AIT on sale of land - Schedule (b)
SL
No.
5.
Name of the area or areas
Rate of tax per katha (1.65
decimal)
Kakrail, Segunbagicha, Bijoynagar, Eskaton, 4% of the deed value or
Green Road, Elephant Road area (outside one taka 1,20,000/- whichever
hundred feet of main road) of Dhaka
6.
is higher
Green Road (from Road 3 to 8 of Dhanmondi 4% of the deed value or
Residential Area of Dhaka)
taka 2,40,000/- whichever
is higher
7.
Uttara (Sector 10 to 14), Nikunj (south), Nikunj 4% of the deed value or
(North), Badda Rehabilitation Area, Ganderia taka 60,000/- whichever is
Rehabilitation Area, Syampur Rehabilitation higher
Area, IG Bagan Rehabilitation Area, Tongi
Industrial Area of Dhaka
14
AIT on sale of land - Schedule (b)
SL
No.
8.
Name of the area or areas
Rate of tax per katha (1.65
decimal)
Syampur Industrial Area, Postagola Industrial 4% of the deed value or
Area and Jurain Industrial Area of Dhaka
taka 48,000/- whichever is
higher
9.
Khilgaon Rehabilitation Area (beside less than 4% of the deed value or
100 feet road), Rajarbagh Rehabilitation Area taka 72,000/- whichever is
(beside 40 feet and other internal road) of Dhaka
10.
higher
Goran (beside 40 feet road) and Hajaribagh 4% of the deed value or
Tannery Area of Dhaka
taka 30,000/- whichever is
higher:
For flat on the land, an additional tax of taka 600/- (six hundred) per square
meter or four per cent of the deed value of such flat, whichever is higher is
payable.
15
AIT on sale of land –Other areas –
Sch(c)
SL
Name of the area or areas
Rate of tax
No.
1.
Within the jurisdiction of Rajdhani Unnayan
4% of deed
Kartripakya (RAJUK) and Chittagong Development
value
Authority (CDA) except areas specified in schedule
(a) and (b)
2.
Within the jurisdiction of Gazipur, Narayanganj,
3% of deed
Munshiganj, Manikganj, Narsingdi, Dhaka and
value
Chittagong districts [excluding Rajdhani Unnayan
Kartripakya (RAJUK) and Chittagong Development
Authority (CDA)], and within any City Corporation
(excluding Dhaka South City Corporation and Dhaka
North City Corporation) and Cantonment Board
16
AIT on sale of land –Other areas –
Sch(c)
SL
No.
3.
4.
Name of the area or areas
Rate of tax
Areas within the jurisdiction of a paurasabha 3% of deed
of any district headquarter
value
Areas of any other Pauroshova
2% of deed
value
5.
Any other area not specified in schedule (a), 1% of deed
(b) and (c)
value.
17
Rate of WHT at Source
Real Estate (Flat or
apartment)
Registration Authority
Residential Purpose:
(i) Tk. 1600 per sqm for
apartment situated at
Gulshan, Banani,
Baridhara, Motijheel,
Dilkhusha,;
(ii) Tk. 1,500 per sqm for
Dhanmondi, DOHS,
Mohakhali, Uttara,
Bashundhora, Dhaka
Cantonment, Lalmatia,
Karwan Bazar and Khulshi,
Panchlaish, Agrabad and
Nasirabad of Chittagong
(iii) Tk 600 per sqm in
other area
18
Rate of WHT at Source
Real Estate (flat or
apartment)
Registration Authority
Commercial Purpose:
(i) Tk. 6,500 per sqm for
apartment situated at
Gulshan, Banani,
Baridhara, Motijheel,
Dilkhusha,;
(ii) Tk. 5,000 per sqm for
Dhanmondi, DOHS,
Mohakhali, Uttara,
Bashundhora, Dhaka
Cantonment, Lalmatia,
Karwan Bazar and Khulshi,
Panchlaish, Agrabad and
Nasirabad of Chittagong
(iii) Tk 1,600 per sqm in
other area
19
Rate of WHT at Source
Real Estate (land)
Registration
Authority
Lease of property by Registration
any person including officer
Rajuk, CDA, RDA,
KDA and NHA
(i) Dhaka, Chittagong,
Narayangonj,
Manikgonj, Gazipur
and Mushiganj - 5%
of the deed value
(ii) Any other district3% of the deed value
4% of the deed value
20
Rate of WHT at Source
Transfer of shares of
demutualized stock
exchanges
Stock Exchanges
Dividend
The principal officer
of a company
15% of the gain
-20% for company
(resident & NR)
- 30% for Non-resident
individual
-10% for resident
individual
-15% for resident
individual having no e-TIN
21
Rate of WHT at Source
Insurance Commission
Any person responsible for
paying such commission to
a resident
5%
General Insurance
Surveyors Fees
Any person responsible for
paying such commission to
a resident
15%
Interest on Post Office
Savings Bank Account
Any person responsible for
making such payment
10%
Payment for any
advertising including
newspaper , online or
TV
Government, Authority,
Body, Company, Bank,
Insurance, Co-operative,
NGO, University, Colleges
etc
4%
22
Rate of WHT at Source
IGW
ICX, ANS
Interest on
debenture
Travel agency
commission
Soft drinks and
mineral water
Profit on life
insurance policy
Paying Bank
1%
IGW
5%
Bank
5%
Airlines
0.30% of ticket value or
cargo value
Security Printing Press
4% of vatable value of
the band roles
Insurance Company
5%
23
Rate of WHT at Source
Local LC payment
Bank
3%
- No TDS if LC value is
less than taka 5 lakh
- No TDS on LC for
essential goods, computer,
jute, cotton and yarn
Fees paid by mobile
phone operators
Export cash subsidy
Signing money or
rent compensation
Mobile phone
companies
10%
Bank
3%
Real Estate Companies
15%
24
Non-residents WHT
Head of Withholding
Withholding
Authority
Accounting or tax consultancy
Any person responsible for
payment
20%
Advertisement making
Any person responsible for
payment
15%
Advertisement broadcasting
Any person responsible for
payment
20%
Advisory or consultancy service
Any person
payment
responsible
for
30%
Air transport or water transport
Any person
payment
responsible
for
7.5%
or Any person
payment
responsible
for
20%
Architecture, interior
landscape design
design
WHT Rates
25
Non-residents WHT
Head of Withholding
Withholding
Authority
Artist, singer or player
Any person responsible for
payment
20%
Capital gain receivedAny person responsible for
(a) from capital assets (not being payment
securities listed with stock
exchange)—
(b) by a company or firm if such
gain is arising from securities
listed with any stock exchange
not exempted from tax in the
country of such non-resident-----
15%
Certification
20%
Any person responsible for
payment
WHT Rates
10%
26
Non-residents WHT
Head of Withholding
Withholding
Authority
WHT Rates
Charge or rent for satellite, airtime or Any person responsible for
frequency
payment
20%
Contractor, sub-contractor or supplier
Any person responsible for
payment
5%
Courier service
Any person responsible for
payment
15%
DividendAny person
(a) company-----payment
(b) any other person, not being a
company--------------------
responsible
Insurance premium
Any person
payment
responsible
for
10%
Interest, royalty or commission
Any person
payment
responsible
for
20%
for
20%
30%
27
Non-residents WHT
Head of Withholding
Withholding
Authority
Legal service
Any person responsible for
payment
20%
Machinery rent
Any person responsible for
payment
15%
Management or event management
Any person responsible for
payment
20%
Pre-shipment inspection service
Any person
payment
responsible
for
30%
Professional
service,
technical Any person
service fee, technical assistance fee payment
or technical knowhow fees
responsible
for
20%
Salary or remuneration
responsible
for
30%
Any person
payment
WHT Rates
28
Non-residents WHT
Head of Withholding
Withholding
Authority
WHT Rates
Exploration or drilling in petroleum Any person responsible for
operations
payment
5.25%
Survey for oil or gas exploration
Any person responsible for
payment
5.25%
Any service for making connectivity Any person responsible for
between oil or gas field and its payment
export point
5.25%
Any other payments
Any person
payment
responsible
for
30%
29
Final Settlement of Income Tax
Income from some specified businesses activities by
a company is treated as final settlement of tax as per
provision of Section 82C of the IT Ordinance 1984.
Final settlement means company's tax obligation for
these sources of income is limited to the tax that has
been deducted at source at the time of receiving the
income. There shall be no additional tax liability of
the company on income earned by the company
from these businesses and there shall not be any tax
refund allowable against the tax deducted at source.
However, income to be shown in tax return has to be
calculated in accordance with the provision of sub
section 4 of section 82C.
30
30
Source of income that are subject to Final
Settlement of Tax
•
•
•
•
•
•
•
Contract or supply business -Section 52 (excluding
contractor and sub-contractor of oil company, oil
marketing companies and its dealers, oil refinery, gas
transmission and distribution)
Royalties, fees for professional services- Section 52A(2)
Clearing and Forwarding business- Section -Section
52AAA
Manufacturer of Biri- Section 52B(1)
Compensation against acquisition of property- Section
52C
Income of travel agents etc under Section 52JJ
Import of goods and sale of imported goods without
further processing- Section 53
31
31
Source of income that are subject to Final
Settlement of Tax
•
•
•
•
•
•
•
•
Shipping business of a resident- Section 53AA
Export of Manpower- Section 53B
Export of any goods -Section 53BB & 53BBBB
Commission income earned by a member of stock
exchange- Section 53BBB
Auction purchase- Section 53C
Real Estate business- Section 53FF
Surveyor of general insurance -Section 53GG
Transfer of property- Section 53H
32
32
Source of income that are subject to Final
Settlement of Tax
•
•
•
•
•
•
•
Transfer of securities or mutual fund unit by
sponsor shareholder - Section 53M
Transfer of shares of stock exchange- Section 53N
Rental Power Business income- 52N
International Phone Calls and Gateway Service52S
Export Cash Subsidy – Section 52DDD
Signing money including any rent compensation
payable by a real estate developer company to the
land owner under Section 53P
Winnings from lottery- Section 55
33
33