SI Heads Ref Rate

Salaries Section 50 Average

1
Salaries (Government) Section 50 (1A) Average

Discount on the real value of Bangladesh

2 Section 50A Maximum
Bank Bills

3 Interest or profit on securities Section 51 5%

(a) Execution of contract, other than a

contract for providing or rendering a
service mentioned in any other section of
Section 52 &
4 Chapter VII. Annexure 1
Rule 16
(b) Supply of goods;
(c)Manufacture, process or conversion;
(d) Printing, packaging or binding

Royalties, franchise, fee for issuing

license, brand name, patent, invention,
formula, process, method, design,
pattern, know-how, copyright, trademark,
5 Section52A Annexure 2
trade name, literary or musical or artistic
composition, survey, study, forecast,
estimate, customer list or any other
intangibles

6 (1) Advisory or consultancy service

(2) Professional service, Technical
services fee, Technical assistance fee. Section 52AA Annexure 3
(excluding professional services by
doctors)

(2) Professional service (by doctors) Section 52AA Annexure 3

3. Section 52AA Annexure 3

(i) Catering service;
(ii) Cleaning service;
 (iii) Collection and recovery service;
(iv) Private security service;
(v) Manpower supply service;
(vi) Creative media service;
(vii) Public relations service;
(viii) Event management service;
(ix) Training, workshop, etc. organization
and management service;
(x) any other service of similar nature
(4) Media buying agency service
(5) Indenting commission
(6) Meeting fees, training fees or
honorarium
(8) Credit rating agency
(9) Motor garage or workshop
(10) Private container port or dockyard
service
(11) Shipping agency commission
(12) Stevedoring /berth operation
commission
(13) Transport service, carrying service,
vehicle rental service
(14) Any other service which is not
mentioned in Chapter VII, and is not a
service provided by any bank, insurance
or financial institutions

(7) Mobile network operator, technical

support service provider or service
Section 52AA Annexure 3
delivery agents engaged in mobile
banking operations

7 C&F agency commission Section 52AAA 10%

Manufacturer of nonmechanical cigarette 10% of the value of

8 Section 52B
(Bidi) banderols

9 Compensation against acquisition of Section 52C (a) 2% of the amount

property such
compensation against
 the immovable proper
situated
within a city corporatio
paurashava or
cantonment board(b)1
of the amount of such
compensation against
the
immovable property
situated
outside the jurisdiction
a city corporation,
paurashava or
cantonment board

5%
(No witholding tax on
interest on pensioners
savings certificate if
10 Interest on saving instruments Section 52D cumulative investmen
such certificate at the
end of the income yea
does not exceed tk. 5
lakh)

Payment to a beneficiary of Workers’

11 Section 52DD 5%
Participation Fund

Tk.45,000/-for one
section brickfield,
Tk.70,000/-for one an
half section brickfield

12 Brick Manufacturer Section 52F Tk.90,000/-for two

section brick field,

Tk.1,50,000/-for
automatic brickfield

13 Commission of letter of credit Section 52I 5%

14 Travel agent Section 52JJ Annexure 4

Tk.500/-for Dhaka No
City
Corporation, Dhaka
South City Corporatio
Chittagong City
Renewal of trade license by City Corporation;
15 Section 52K
Corporation or Paurashava Tk.300 for anyother ci
corporation, and any
paurashava of any
district
headquarters;Tk.100
any other paurashava

16 Freight forward agency commission Section 52M 15%

17 Rental power Section 52N 6%

Foreign technician serving in diamond

18 Section 52O 5%
cutting

Services from convention hall,

19 Section 52P 5%
conference centre etc.

Any income in connection with any

20 service provided to any foreign person by Section 52Q 10%
a resident person

(1)1.5%of total revenu

received by IGW
services
operator.(2) 7.5% of
revenue paid or credit
International gateway service in respect
21 Section 52R to ICX,ANS and
of phone call.
others(2A) 7.5% on th
whole amount so paid
credited at
the time of payment o
credit
 4% of the value of suc
soft drinks or mineral
bottled
22 Manufacturer of soft drink, etc Section 52S water as determined f
the purpose of Value
Added Tax
(VAT)

Payment in excess of premium paid on

23 Section 52T 5%
life insurance policy

24 Payment on account of purchase through Section 52U 3%

local L/C (If purchase of goods
through
local L/C exceeds tak
lakh)
No tax shall be deduc
under this section from
the
payment related to loc
letter of credit (L/C) an
any
other financing
agreement in
respect of purchase o
procurement of rice,
wheat,
potato, onion, garlic,
peas,
chickpeas, lentils,
ginger,
turmeric, dried chilies,
pulses, maize, coarse
flour,
flour, salt, edible oil,
sugar,
black pepper, cinnam
cardamom, clove, dat
cassia leaf, computer
computer accessories
jute,
 cotton, yarn and all kin
of
fruits

Payment of fees, revenue sharing etc. by

25 Section 52V 10%
cellular mobile phone operator

(a) 5% (general rate)

(b) 2% on certain
imported
Section 53 &
26 Import goods
Rule 17A
(c)Tk.800 per ton in ca
of
import of certain items

27 House property Section 53A 5% of the gross rent

5% of total freight
received or receivable
or out of Bangladesh
3% of total freight
28 Shipping business of a resident Section 53AA received
or receivable from
services
rendered between two
more foreign countrie

Section 53B &

29 Export of manpower 10%
Rule 17C

1% of the total export

Export of knit wear and woven garments,
proceeds of all goods
terry towel, carton and accessories of
(other
30 garments industry, jute goods, frozen Section 53BB
than jute goods)0.60%
food, vegetables, leather goods ,packed
the total export
food
proceeds of jute good

31 Member of Stock Exchanges Section 53BBB 0.05%

 1% of the total export
proceeds of all goods
Export of any goods except the goods Section
32 except
mentioned in section 53BB 53BBBB
the goods mentioned
section-53BB

Section 53C &

33 Goods or property sold by public auction 5% of sale price
Rule 17D

15% on the amount o

34 Courier business of a non-resident Section 53CCC
service charge

(a)10% on the payme

in
case of purchase of fi
drama, any kind of
Payment to actors, actresses, producers, television
35 Section 53D
etc or radio program(b)10
on the payment to
actor/actress(If the tot
payment
exceedTk.10,000)

36 Export cash subsidy Section 53DDD 3%

Section 53E(1)
37 Commission, discount or fees Annexure 5
and (2)

38 Commission, discount or fees Section 53E(3) Annexure 5

Commission or remuneration paid to

39 Section 53EE 10%
agent of foreign buyer

40 Interest or share of profit on saving Section53F(1) 10% if there is TIN;

deposits and fixed deposits etc 15% if there is no TIN
(not
applicable if the balan
does
not exceed tk. 1 lakh a
 any
time in the year in cas
of
saving deposit)
(not applicable on the
amount
of interest or share of
profit
arising out of any
deposit
pension scheme
sponsored by
the Government or by
schedule bank with pr
approval of the
Government)

Interest or share of profit on any saving

deposits or fixed deposits or any term Section 53F(2) 5% (Annexure 6)
deposit by or in the name of a fund

See annexure 7 in cas

of Building or apartme
In case of Land:
(i)5% for Dhaka,
Gazipur,
Real estate or land development
41 Section 53FF Narayanganj,
business
Munshigang,
Manikganj, Narshindi
& Chittagong district;(
3% for any other
district

42 Insurance commission Section 53G 5%

Fees of survey or so for general

43 Section 53GG 15%
insurance company

As mentioned in secti
44 Transfer of property Section 53H
53H
45 Collection of Tax from lease of property Section 53HH 4%

Interest on deposit of post office Saving

46 Section 53I 10%
bank account

Rental value of vacant land or plant or

47 Section 53J 5%of the rent
machinery

Advertisement of newspaper or magazine

or private television channel or private
radio station or any web site or any
48 Section 53K 4%
person on account of advertisement or
purchasing airtime of private television
channel or radio station or such website.

Transfer of shares by the sponsor

49 shareholders of accompany listed with Section 53M 5%
stock exchange

Transfer of shares of any Stock

50 Section 53N 15% on gain
Exchange

Any sum paid by real estate developer to

51 Section 53P 15%
land owner

Resident/nonresident
Bangladeshi
company —-
20%
Resident/nonresident
52 Dividends Section 54 Bangladeshi
person other
than company
-If TIN, 10%
-If No TIN,
15%

53 Income from lottery Section 55 20%

54 Income of non-residents (Section 56): Section 56 Annexure 8
(1) Advisory or consultancy service
(2) Pre-shipment inspection service
(3) Professional service, technical
services, technical know-how or technical
assistance
(4) Architecture, interior design or
landscape design, fashion design or
process design
(5) Certification, rating etc.
(6) Charge or rent for satellite, airtime or
frequency, rent for channel broadcast
(7) Legal service
(8) Management service including event
management
(9) Commission
(10) Royalty, license fee or payments
related to intangibles
(11) Interest
(12) Advertisement broadcasting
(13)Advertisement making or Digital
marketing
(14) Air transport or water transport
(15) Contractor or sub-contractor of
manufacturing, process or conversion,
civil
work, construction, engineering or works
of similar nature
(16) Supplier
(17) Capital gain
(18) Insurance premium
(19)Rental of machinery, equipment etc.
(20) Dividend
(21) Artist, singer or player
(22) Salary or remuneration
(23) Exploration or drilling in petroleum
operations
(24) Survey for oil or gas exploration
(25) Any service for making connectivity
between oil or gas field and its export
point
 (26) Any payments against any services
not mentioned above

(27) Any other payments under section

Section 56 30%
56

55 Advance tax for private motor car Section 68B Annexure 9

Annexure 1: Rate of deduction under section 52
(a) subject to clause (b), in case of a payment made sub-section (1) of section 52,
the deduction on payment shall be at the following rate:

SI Amount Rate

1 Where base amount does not exceed BDT 15 lakh 2%

Where base amount exceeds BDT 15 lakh but does not exceed BDT
2 3%
25 lakh

Where base amount exceeds BDT 25 lakh but does not exceed BDT 1
3 4%
crore

Where base amount exceeds BDT 1 crore but does not exceed BDT 5
4 5%
crore

Where base amount exceeds BDT 5 crore but does not exceed BDT
5 6%
10 crore

6 Where base amount exceeds BDT 10 core 7%

(b) the rate of deduction from the following classes of persons shall be at the
following rate:

In case of oil supplied by oil marketing companies- Nil

1 (a) Where the payment does not exceed taka 2 lakhb) 0.60%
Where the payment exceeds taka 2 lakh

In case of oil supplied by dealer or agent (excluding petrol

2 1%
pump station) of oil marketing companies, on any amount
 In case of supply of oil by any company engaged in oil
3 3%
refinery, on any amount

In case of company engaged in gas transmission, on any

4 3%
amount

In case of company engaged in gas distribution, on any

5 3%
amount
Annexure 2: Rate of deduction under section 52A
Description of payment Rate

Where base amount does not exceed taka 25 lakh 10%

Where base amount exceeds taka 25 lakh 12%

Annexure 3: Rate of deduction from the payment of certain services
under section 52AA
Rate

Where
SI Description of service and payment base Where ba
amount amount
does not exceeds
exceed Tk. Tk. 25 lak
25 lakh

1 Advisory or consultancy service 10% 12%

Professional service, technical services fee, or technical

2 10% 12%
assistance fee

3 (i) Catering service;    

(ii) Cleaning service;    
(iii) Collection and recovery service;
(iv) Private security service;    
(v) Manpower supply service;
(vi) Creative media service;    
(vii) Public relations service;
    
(viii) Event management service;
(ix) Training, workshop, etc. organization and    
management service;
(x) any other service of similar nature- 10% 12%
(a) on commission or fee
(b) on gross bill amount 1.5% 2%

Media buying agency service 10% 12%

4 (a) on commission or fee 0.5% 0.65%
(b) on gross bill amount

5 Indenting commission 6% 8%

6 Meeting fees, training fees or honorarium 10% 12%

Mobile network operator, technical support service

7 provider or service delivery agents engaged in mobile 10% 12%
banking operations

8 Credit rating service 10% 12%

9 Motor garage or workshop 6% 8%

10 Private container port or dockyard service 6% 8%

11 Shipping agency commission 6% 8%

12 Stevedoring/berth operation commission 10% 12%

13 Transport service, carrying service, vehicle rental service 3% 4%

Any other service which is not mentioned in Chapter VII of

14 this Ordinance and is not a service provided by any bank, 10% 12%
insurance or financial institutions
Annexure 4: Rate of deduction from income of non-residents under
section 52JJ
Any person responsible for making any payment to a resident any sum by way of
commission or discount or any other benefits, called by whatever name,
convertible into money for selling passenger tickets or air cargo carriage shall
deduct or collect advance tax at the rate of zero point three zero percent (0.30%)
of the total value of the tickets or any charge for carrying cargo by air at the time
of payment to such resident.

Where any incentive bonus, performance bonus or any other benefits, called by
whatever name, is to be paid in relation to such sale of tickets or bill for carrying
cargo by air in addition to the amount mentioned in sub-section (1), person
responsible for making such payment shall deduct an amount equal to (A/B) x C,
where:

“A” is the amount of incentive bonus, performance bonus or any other benefits as
mentioned in sub-section (2),

“B” is the amount of commission or discount or any other benefits as mentioned

in subsection (1), and

“C” is the amount of source tax on commission or discount or any other benefits
as mentioned in sub-section (1).

For the purpose of computation of value of tickets or charge, any payment made
in respect of any embarkation fees, travel tax, flight safety insurance, security tax
and airport tax shall not be included in such value or charge.

“payment” includes a transfer, a credit or an adjustment of payment.

Annexure 5: Rate of deduction from income of non-residents under

section 53E
(1) Any company making a payment or allowing an amount to a distributor,
called by whatever name, or to any other person by way of commission, discount,
fees, incentive or performance bonus or any other performance related incentive
or any other payment or benefit of the similar nature for distribution or
marketing of goods, shall deduct or collect tax at the time of payment or allowing
the amount at the rate of ten percent (10%) of the amount of payment or the
amount allowed or the value of benefits allowed, as the case may be.

(2) Any company making a payment in relation to the promotion of the company
or its goods to any person engaged in the distribution or marketing of the goods
of the company shall, at the time of payment, deduct tax at the rate of one point
five percent (1.5%) of the payment.
 (3) Any company, other than an oil marketing company, which sells goods to:
(a) any distributor, or
(b) any other person under a contract,
at a price lower than the retail price fixed by such company, shall collect tax from
such distributor or such any other person at the rate of five percent (5%) on the
amount equal to B x C,

where B = the selling price of the company to the distributor or the other person;
C = 5%:
Provided that a cigarette manufacturer company shall collect tax at the time of
sale of its goods to such distributor or to such other person at the rate of three
percent (3%) of the difference between the sale price to the distributor or the
other person and the retail price fixed by such company.

(4) In this section:

(a) “payment” includes a transfer, credit or an adjustment of payment;
(b) “contract” includes an agreement or arrangement, whether written or not.
Annexure 6: Rate of deduction from income of non-residents under
section 53F (2)
TDS @ 5% is applicable on profit or share of profit.

The responsible person who will paid or credit, earlier one, profit or share of
profit on savings deposit, fixed deposit or term deposit by Fund or Name in any
schedule bank, cooperative bank, bank operated under Islami Shariah, non-
banking finance institute, leasing company or house finance company shall
deduct the tax at the above rate.

Fund means approved superannuation fund, pension fund, gratuity fund,

recognized provident fund or workers’ participation fund which is created and
operated by law has a legal identity and can operate separate bank account under
law.

The above rate will be applicable from July 01, 2016.

However, the fund which was exempted from source tax shall enjoy the facility
upto June 30, 2016.

Annexure 7: Rate of deduction from income of non-residents under

section 53FF
1. a) in case of building or apartment constructed for residential purposes:

Per square
Area
metre (BDT)
 i) Gulshan Model Town, Banani, Baridhara, Matijheel C/A and Dilkusha
1,600
C/A of Dhaka

ii) Dhanmondi R/A, DOHS, Mohakhali, Lalmatia Housing Society, Uttara

Model Town, Bashundhara R/A, Dhaka Cantonment Area, Karwanbazar
1,500
C/A of Dhaka and Panchlaish R/A, Khulshi R/A, Agrabad and Nasirabad of
Chittagong

iii) Dhaka North City Corporation, Dhaka South City Corporation and
1,000
Chittagong City Corporation other than areas mentioned in (i) and (ii)

iv) Other City Corporations than Dhaka North City Corporation, Dhaka
700
South City Corporation and Chittagong City Corporation

v) in areas other than areas mentioned in the above (i), (ii), (iii) & (iv) 300
Source tax for residential apartment consisting below 70 sqm including common
space will be 20% lower and below 60 sqm including common space will be 40%
lower.

1. b) in case of building or apartment or any space constructed not for the

residential purposes:

Per square
Area
metre (BDT)

i) Gulshan Model Town, Banani, Baridhara, Matijheel C/A and Dilkusha

6,500
C/A of Dhaka

ii) Dhanmondi R/A, DOHS, Mohakhali, Lalmatia Housing Society, Uttara

Model Town, Bashundhara R/A, Dhaka Cantonment Area, Karwanbazar
5,000
C/A of Dhaka and Panchlaish R/A, Khulshi R/A, Agrabad and Nasirabad of
Chittagong

iii) Dhaka North City Corporation, Dhaka South City Corporation and
3,500
Chittagong City Corporation other than areas mentioned in (i) and (ii)

iv) Other City Corporations than Dhaka North City Corporation, Dhaka
2,500
South City Corporation and Chittagong City Corporation
 v) in areas other than areas mentioned in the above (i), (ii), (iii) & (iv) 1,200

Annexure 8: Rate of deduction from income of non-residents under

section 56

SI Description of services or payments Rate

1 Advisory or consultancy service 20%

2 Pre-shipment inspection service 20%

Professional service, technical services, technical know-how or technical

3 20%
assistance

Architecture, interior design or landscape design, fashion design or

4 20%
process design

5 Certification, rating etc. 20%

Charge or rent for satellite, airtime or frequency, rent for channel

6 20%
broadcast

7 Legal service 20%

8 Management service including event management 20%

9 Commission 20%

10 Royalty, license fee or payments related to intangibles 20%

11 Interest 20%

12 Advertisement broadcasting 20%

 13 Advertisement making or Digital marketing 15%

14 Air transport or water transport 7.5%

Contractor or sub-contractor of manufacturing, process or conversion,

15 7.5%
civil work, construction, engineering or works of similar nature

16 Supplier 7.5%

17 Capital gain 15%

18 Insurance premium 10%

19 Rental of machinery, equipment etc. 15%

Dividend- 20%
20 (a) company– 30%
(b) any other person, not being a company–

21 Artist, singer or player 30%

22 Salary or remuneration 30%

23 Exploration or drilling in petroleum operations 5.25%

24 Survey for oil or gas exploration 5.25%

Any service for making connectivity between oil or gas field and its export
25 5.25%
point

26 Any payments against any services not mentioned above 20%

27 Any other payments 30%

Annexure 9: Rate of advance tax under section 68B
SI Types of car and engine capacity BDT
 1 Upto 1500cc motor car or jeep 15,000

2 More than 1500cc to 2000cc motor car or jeep 30,000

3 More than 2000cc to 2500cc motor car or jeep 50,000

4 More than 2500cc to 3000cc motor car or jeep 75,000

5 More than 3000cc to 3500cc motor car or jeep 100,000

6 Above 3500cc motor car or jeep 125,000

7 For each microbus 20,000

In case of more than one car or jeep solely or jointly owned by any person then
the advance tax will be 50% higher for each next car or jeep.

The advance tax shall be paid at the time of registration or before expired date of
fitness renewal.

The responsible authority who will issue the registration or fitness renewal
certificate should confirm that the advance tax has been paid for respective motor
car, jeep or microbus.

Where the fitness renewal is not required in each year then the advance tax shall
be paid before the expired date of financial year. And the payment receipt of
advance tax shall be submitted at the time of next renewal date.

The tax paid as advance shall be adjusted as credit but non refundable or will not
adjusted in next income year.

If regular tax is less than advance tax then the advance tax shall be treated as
minimum tax.