Mr AbrahamSocial media platforms like Facebook and YouTube will have to pay a tax of 15% to repatriate the income from advertisements published through the use of the internet in Bangladesh.
In addition, foreign companies have to pay 20% tax to take the income from television and radio, which will be deducted by the banks.
Bangladesh Bank issued a circular regarding this on Monday.
According to the circular, the banks should deduct a maximum of 20% tax for remittances to non-resident companies in the form of remittances from advertisements distributed through foreign companies.
Bangladesh Bank has given new instructions to the banks to deduct tax at the rate of 15% in the digital marketing category and 20% in the advertising broadcasting category while sending money abroad.
It is mentioned in the circular that banks will not be able to deduct tax at different rates from different customers for sending remittances from non-resident institutions till next June.
Until now, banks used to deduct tax at different rates while sending money abroad, the central bank said.
Quoting the National Board of Revenue (NBR), Bangladesh Bank said that the NBR defined new definitions according to the type of advertisement and content disseminated through non-resident institutions.
It has been mentioned about digital marketing that if any advertisement is done using the internet i.e. if any advertisement is done on social media or website or any content is promoted or marketed then it will be considered as digital marketing.
Any content or advertisement broadcast on any television or radio channel shall not be considered as digital marketing.
Regarding advertisement broadcasting, it is said that an advertisement broadcast on any television or radio channel will only be considered as advertisement broadcasting.
Any advertising broadcast using the Internet, i.e. any advertisement broadcast on social media or website or promotion or marketing of any content shall not be considered as advertisement broadcasting.
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