FM Consulting International is one of the leading Business Tax services provider consultants or advisors in Bangladesh. At FM Consulting International we assist to prepare returns for and pay your business tax on time. Filing business tax return in Bangladesh can be cumbersome and divert you from your operations if your corporation tax in Bangladesh is not paid in accordance with the laws of Bangladesh. At FM Consulting International, our tax preparation help would ensure that you are compliant with the taxation laws as well as filing your business tax within the due time.
In Bangladesh, business income tax is to be paid on the business income. Business income is defined as the profit that has arisen or accrued from the conducting of any business or trade in Bangladesh. Under the purview of the company tax it is also the value of any benefit or perquisites that the business has come across within the relevant tax year in Bangladesh.
The methods of tax accounting services in Bangladesh is almost similar to the International Accounting Standards. The Accounting method for a company is similar to the statutory audit required under the Companies Act 1994 i.e. income tax audit and statutory audit is similar. Along with the submission or filing of the tax return in Bangladesh, the company has to submit the Audited Financial Statements for the period then ending which has to be audited in accordance with the Bangladesh Standards on auditing of the financial statements prepared in accordance with Bangladesh Accounting Standards and the Bangladesh Financial Reporting Standards.
Every Company, Branch office, Liaison office, Representative office, Joint Venture Company (JV) registered in Bangladesh must file an annual tax return to National Board of Revenue (NBR).
In order to know about the tax rates in Bangladesh please read our blog article about “Corporate Tax in Bangladesh” by clicking here.
The income tax return form in Bangladesh is called the IT-11GHA 2016. This contains 6 parts. Part I contains the Basic Information like names, type of business, your auditors in Bangladesh, details of tax year etc. Part II contains Particulars of Income and Tax like amount of income from business in Bangladesh, amount of business tax, minimum tax in Bangladesh, advance tax, details of tax refund in Bangladesh etc. Part III contains Particulars of Tax Benefits like the amount of income tax exemption in Bangladesh, tax rebate etc. Part IV contains principal figures of Financial Statements. Part V contains other Particulars like bank accounts, affiliated entities etc. PART VI contains Instruction, Enclosures and Verification.
During the formulation of tax strategies of company tax and at the income tax planning stage, a company has to take into account the set off provisions as formulated in the taxation laws of Bangladesh. If a business has income from several heads, then subject to some conditions he can get relief of tax to be paid on a head in which he has made a profit.
During the calculation of the corporation tax, a company has to keep the provisions for carry forward of losses of earlier years. Such carry forward of business income tax is permitted under the income tax laws of Bangladesh provided that the loss is not from speculation business; the loss cannot be set off wholly in a tax year etc. Such carry forward of losses of earlier tax years can be set off in the following tax years for a period of upto six assessment years.
A company always has to take into account the deadlines for filing of tax return. The tax return submission date in Bangladesh is called the Tax Day. Tax day for a company in Bangladesh is the 15th day of the seventh month after the income year ends. The income year in Bangladesh is generally July to June. However, MNCs can take special approval from the National Board of Revenue for changing their income year.
In order to know about the withholding taxes in Bangladesh please read our blog article about “Corporate Tax in Bangladesh” by clicking here.
In order to know about the Payroll taxes in Bangladesh please read our blog article about “Corporate Tax in Bangladesh” by clicking here.
In order to know about the Indirect tax in Bangladesh please read our blog article about “Corporate Tax in Bangladesh” by clicking here.
For a more comprehensive guideline regarding Bangladesh Tax system Please contact [email protected]