NBR frames rules for source tax deduction

The National Board of Revenue (NBR) has framed rules regarding tax deducted at source (TDS) in line with the new income tax law that came into effect last month.

The new rule on TDS became effective on July 1.

As per the new rules, taxpayers will be able to know the withholding tax rates against various sources of their incomes separately.

From the rule, importers will also be able to know advance income tax rate against imports of various products, said the official.

The rules have also incorporated formats of withholding tax returns for the convenience of taxpayers.

In FY21, Bangladesh’s total export income was $38.75 billion, while $193.7 million or Tk1,666 crore was collected in advance income tax on export revenue.

The rate of income tax is not the same for all exporters, but the source tax is levied at the same rate on all sectors in the current financial year.