In Bangladesh, taxation services have become one of the most important and complicated compliance challenges for businesses. The announcement of the Financial Services act changes the income Tax rates and imposition virtually every year.
We advise people who are experiencing trouble filing their tax returns to seek professional help. We will enable an evaluated client to prepare a return with exact and accurate amounts, limiting the chances of future tax return filing difficulties.
Purpose Of Income Tax
A tax is a sum of money which you must pay the government in order for it to fund public services like roads and schools. Income tax is a type of taxation that a government creates on its people’ earnings. Income earned in the kind of a commission is not the primary source of income. And Income from a residence, profits from a business, gains from a profession (such as a bonus), investment income revenue, and ‘earnings from other sources’ are all included.
In Bangladesh, There Are Several Types Of Taxes, The Common Are:
- Customs Duties
- VAT (Value Added Tax) (VAT)
- Additional Responsibility
- Personal Income Taxes
- Corporations pay income taxes.
Who Will Pay Income Tax In Bangladesh?
The tax rate for publicly traded companies is recommended to be cut from 25% to 22.5 percent. Virtual businesses and financial organizations other than businesses and groups are subject to a 30% rate of taxation.
Individuals who earn income in Bangladesh are required to pay income tax on their earnings. This includes both Bangladeshi citizens and foreign nationals who work in Bangladesh.
Companies, whether domestic or foreign, are also required to pay income tax on their profits earned in Bangladesh. The tax rate for companies varies depending on their type of entity, size, and annual turnover.
Firms and other entities such as associations, societies. And trusts are also required to pay income tax on their earnings.
Updated Taxation 2021-2022 In Bangladesh
| Tax Step | Taxation Rate |
| Up to Tk. 3 Lac. | 0% |
| Next Tk. 1 Lac | 5% |
| On next Tk. 3 Lac | 10% |
| The next Tk. 4 lac | 15% |
The Advantages Of Taxation
Under the law of supply, taxes serve a similar purpose to prices in private transactions in that they help define what activities the authority will take and who will pay for services. Corporate and personal profits would be uncontrolled and unregulated if there was no income tax. Because they don’t have to explain their revenues, dishonest people and mega corporations may make huge amounts of money.
The Disadvantages Of Taxation
Because taxation takes money away from customers and reduces disposable income, they have the potential to reduce consumer spending. High taxes can hamper economic growth, so the government may implement tax cuts to increase consumption and growth during times of economic difficulty. The application of a taxation system is extremely difficult, particularly when it comes to regulating the wealthy and companies.
The Benefits Of Pay Income Tax
The government runs and often develops new public welfare initiatives to help people from all sections of the country, including health, education, housing, employment, and food programs. One of the key sources of funding for such organizations is income tax.
Our 7 Exclusive Services Given Below:
- Failure to file tax returns on time.
- Fixes, patches, and service packs for security issues
- Tax returns that have been changed.
- Telephone assistance, live chat assistance, email assistance, and more
- Providing tax advice to clients.
- Income Tax Arguments.
- Representing clients in front of the Internal Revenue Service.
Why to take our services:
- Saves money on taxes: It becomes quite simple to detect potential tax deductions throughout the year and to advise on smart investments to prevent future tax liabilities.
- Be safe: In financial concerns, it is preferable to seek the assistance of a professional. Tax consultants keep track of your tax records in a secure and legal manner, and they can supply them to you at any time.
- Time saving: Consumers may find it difficult to file income taxes towards the close of the year, and they may make fast financial decisions as a result. It requires a significant amount of effort to guarantee that tax returns are filed correctly.
- Observations on Taxes: Tax advisors are quite familiar with the act’s tax laws and compliances, which an individual may not be.
Opinion:
The income tax produces a disparity between both the quality of a person’s effort and the amount of money they get (disposable income). This has a negative effect on the economy as it encourages employees to work and engage in more free time than they would if income taxes were not in place. Because capital is taxed, income taxes create a barrier that prevents people from saving. When contrasted to a pure value added tax, this limits investment, discourages innovation, and eventually contributes to a poorer quality of living.
Customer Remark
Customers that use our services always give us positive feedback. They always communicate with us, and we do our best to meet their needs. They can contact us at any time and we will handle the issues.
For the last 15 years, our team of tax lawyers, tax experts, revenue financial advisers, income tax specialists, tax professionals, tax representatives, and accountants has provided taxation services in Bangladesh.
