Withholding Tax Rates in Bangladesh 2021-2022

 

Who are the withholding authorities?

Every person, being a company or a co-operative society or a non-government organization registered with NGO Affairs Bureau 1[a Micro Credit Organisation having licence with Micro Credit Regulatory Authority, 2[a university], a private hospital, a clinic, a diagnostic centre, 3[an English medium school providing education following international curriculum, artificial juridical person, local authority,] a firm or an association of persons], shall file or cause to be filed, with the Deputy Commissioner of Taxes under whose jurisdiction he is an assessee, a return of tax deducted or collected under the provisions of Chapter VII of the Income Tax Ordinance.

The Withholding tax return shall be-

(a) furnished in the prescribed form setting forth therein such particulars and information, and accompanied by such schedules, statements, accounts, annexures or documents as has beeen prescribed;

(b) filed half-yearly by the following dates-

(i) First return: by Thirty-first January of the year in which the deduction or collection was made;

(ii) Second return: by Thirty-first July of the next year following the year in which the deduction or collection was made

Major sources of income subject to deduction or collection of tax, advance payment of tax, and presumptive tax:

Rates applicable for Financial Year 2021-2022

 

Sl No Heads Withholding authority Rate
1 Salaries (Section50) Any     person responsible or       making such payment deduction at the average rate
Salaries (Government)

[Sub-section section 50]

  

 

 

(1A)

  

 

 

of

 Drawing and Disbursing Officer (DDO) deduction at the average rate
2 Discount    on    the    real value of

Bangladesh Bank Bills (Section 50A)

 Any     person responsible for     making such payment maximum rate
3 Interest     or securities

(Section 51)

 profit on Any    person responsible for issuing a security      of the

Government,

 5%

 

 

Sl No Heads Withholding authority Rate
or      security approved by the Government or Bangladesh Securities and Exchange Commission
4 (a) Execution of contract, other than a contract for providing or rendering a service mentioned in any other section of Chapter VII. Specified person         as mentioned in section 52 As    prescribed in Rule 16.

পতরতশষ্ট 1৫ দ্রষ্টব্য
(b) Supply of goods;
(c)Manufacture,    process or conversion;
(d) Printing, packaging or binding
(Section 52 & Rule16)
5 Royalties, franchise, fee for issuing license, brand name, patent, invention, formula, process, method, design, pattern, know- how,                   copyright,

trademark,    trade  name,

 Specified person         as mentioned in section 52A পতরতশষ্ট 1৬ দ্রষ্টব্য

 

 

Sl No Heads Withholding authority Rate
literary or musical or artistic composition, survey, study, forecast, estimate, customer list or any other intangibles.

 

(Section 52A)
6 (1)                              Advisory or consultancy service

(2)       Professional service, Technical services fee, Technical assistance fee.

(excluding professional services by doctors)

(Section 52AA)

 Specified person         as mentioned in section 52 পতরতশষ্ট 1৭ দ্রষ্টব্য
(2) Professional service (by doctors)

(Section 52AA)

 Specified person         as mentioned in section 52 পতরতশষ্ট 1৭ দ্রষ্টব্য
7 C&F agency commission (Section 52AAA) Commission er                of

Customs

 10%
8 Manufacturer of non- mechanical cigarette (Bidi)

(Section 52B)

 Any     person responsible for       selling banderols    to

a

 10% of the value of the banderols

 

 

Sl No Heads Withholding authority Rate
manufacturer of cigarette
9 Compensation        against acquisition of property

(Section 52C)

 Any     person responsible for    payment of            such

compensatio n

 (a)             6%    of the    amount of      such compensatio n against the immovable property situated within a city corporation, paurashava or cantonment board

 

(b)                                          3% of the amount     of such compensatio n against the immovable

property situated outside     the jurisdiction of         a     city corporation, paurashava

or

 

 

Sl No Heads Withholding authority Rate
cantonment board
10 Interest        on        saving instruments

(Section 52D)

 Any     person responsible for     making such  payment 10%

(No witholding tax             on

interest     on pensioners savings certificate if cumulative investment in               such certificate at the    end    of the    income year       does

not     exceed tk. 5 lakh)
11 Payment to a beneficiary of Workers’ Participation Fund

(Section 52DD)

 Any     person responsible for      making payment from       such

fund     to     a beneficiary

 5%
12 Brick Manufacturer

(Section 52F)

 Any     person responsible for      issuing any Tk.45,000

for           one

section

 

 

Sl No Heads Withholding authority Rate
permission or renewal      of permission for manufacture of bricks brickfield,

Tk.70,000

for one and half section brickfield,

Tk.90,000

for two section brick field,

Tk.1,50,000

for automatic brick field
13 Commission of letter of credit

(Section 52I)

 Any     person responsible for     opening letter           of credit 5%
14 Travel agent (Section 52JJ) Any    person responsible for      paying commission, discount     or any     benefit for selling air tickets         or cargo carriage পতরতশষ্ট ১৮ দ্রষ্টব্য

 

 

Sl No Heads Withholding authority Rate
15 Renewal of trade license by City Corporation or Paurashava

(Section 52K)

 City Corporation or Paurashava Tk.3000 for Dhaka North City Corporation, Dhaka South City Corporation & Chittagong City Corporation;

 

Tk.2000 for anyother city corporation;

 

Tk.1000 for any paurashava of             any

district headquarters

;

 

Tk.500 for any other area.
16 Freight forward agency commission Any     person responsible 15%

 

 

Sl No Heads Withholding authority Rate
(Section 52M) for     making such payment
17 Rental power (Section 52N) Bangladesh Power Development Board or any other person engaged      in power distribution 6%
18 Foreign serving       in cutting

(Section 52O)

 technician diamond Employer 5%
19 Services from convention hall, conference centre etc.

(Section 52P)

 Specified person         as mentioned in section 52 5%
20 Any income in connection with any service provided to any foreign person by a resident person

(Section 52Q)

 Paying        or crediting authority

(Banks        or Financial institutions)

 10%
Where the remittance has been         received         as Paying crediting or 7.5%

 

 

Sl No Heads Withholding authority Rate
consideration                for

contracts                         on

manufacturing, process or conversion,  civil work,                      construction, engineering or works of similar nature

 authority

(Banks        or Financial institutions)
21 International gateway service in respect of phone call.

(Section 52R)

 (1)  The respective bank, in the case    of    the amount credited       to the     account of               an

International Gateway (IGW)

Services operator;

 

 

 

(2)             IGW services operator,    in the    case    of the      amount

paid             or

credited       to the     account

of        (ICX),

 (1)1.5% of

total revenue received by IGW

services operator.

(2)  7.5%  of

revenue paid or  credited to  ICX,ANS

and others

(2A)    7.5%

on the whole amount     so

paid           or

credited at the time of payment or credit

 

 

Sl No Heads Withholding authority Rate
Access Network Services (ANS),

Bangladesh Telecommun ication Regulatory Commission (BTRC)      or

others

 

(2A)            In

respect        of outgoing international calls,         the

provider of Interconnecti on Exchange (ICX)

services      or Access Network Services (ANS)
22 Payment in excess of premium paid on life insurance policy

(Section 52T)

 Any     person responsible for paying to a       resident,

any  sum   in

 5%

 

 

Sl No Heads Withholding authority Rate
excess         of premium paid for any life insurance policy maintained with any life insurance company
23 Payment on account of purchase through local L/C

(Section 52U)

 Respective Bank           or Financial Institutions 3%   on    the amount paid or     credited not being in the nature of Disributor Financing

 

1%   on    the amount paid or     credited in    case    of Distributor Financing Agreement

 

Tax shall be deducted at the   rate   of

two percent (2%)         in

 

 

Sl No Heads Withholding authority Rate
cases          of

local     letter

of         credit (L/C)       and

any       other financing agreement opened      or made for the purchase    or 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, cinnamon, cardamom, clove,    date, cassia     leaf,

computer  or

 

 

Sl No Heads Withholding authority Rate
computer accessories, jute, cotton, yarn and all kinds          of fruits.
24 Payment of fees, revenue sharing etc. by cellular mobile phone operator

(Section 52V)

 The principal officer of a cellular mobile phone operator company responsible for     making such  payment 10%
25 Import (Section 53) Commission er                of

Customs or the officer authorised in this behalf

 not exceeding 20%
26 House property (Section 53A) Specified person         as mentioned in section 52 5%    of    the gross rent
27 Shipping business of a resident Commissione

r of Customs or  any  other

 5%   of  total

freight received    or

 

 

Sl No Heads Withholding authority Rate
(Section 53AA) authority duly authorized receivable in or out of Bangladesh

 

3% of total freight received    or receivable from services rendered between two or          more foreign countries
28 Export       of   manpower- service charge

(Section 53B)

 The Director General, Bureau of Manpower, Employment and Training 10%
Issue or renew license under section 9 of

তবসদক্তিক কেসথ ংস্থান ও অক্তভবাসী আইন, ২০১৩ (২০১৩ সসনর ৪৮ নং আইন) (Section 53B)

 The Director General, Bureau of Manpower, Employment and Training 50,000
29 Export of knit wear and Bank 1%     of the

 

 

Sl No Heads Withholding authority Rate
woven garments, terry towel, carton and accessories of garments industry, jute goods, frozen food, vegetables, leather goods ,packed food

(Section 53BB)

 total export proceeds of all goods
30 Member        of        Stock Exchanges

(Section 53BBB)

 The Chief Executive Officer of Stock Exchange (1)      0.05%

on the value of        shares and    mutual funds transacted

 

(2) 10% on the commission received    or receivable for            the

transaction of securities other      than

shares     and mutual funds
31 Export    of    any    goods

except         the         goods mentioned     in     section

 Bank. Zero      point

five percent (0.5)%       of

 

 

Sl No Heads Withholding authority Rate
53BB

(Section 53BBBB)

 the          total export proceeds    of all        goods except      the goods mentioned in      section- 53BB
32 Goods or property sold by public auction

(Section 53C)

 Any person making such sale 10% of sale price.
33 Courier    business    of    a non-resident

(Section 53CCC)

 Any company working      as local agent of a               non

resident courier company

 15% on the amount      of service charge
34 Payment       to       actors, actresses, producers, etc

(Section 53D)

 The     person responsible for     making payment (a)10% on the payment in case of purchase of film, drama, any kind of television or

radio

 

 

Sl No Heads Withholding authority Rate
program

(b)10%     on the payment to actor/actress (If the total payment

Exceed Tk.10,000)
35 Export cash subsidy (Section 53DDD) Any     person responsible for payment 10%
36 Commission, discount or fees

[Section 53E(1) and (2)]

 Any company    or any firm পক্তরক্তিষ্ট ১৯ দ্রষ্টব্য
Commission, discount or fees

[Section 53E(3)]

 Any company other than oil marketing company পক্তরক্তিষ্ট ১৯ দ্রষ্টব্য
37 Commission                   or remuneration paid to agent of foreign buyer

(Section53EE)

 Bank 10%
38 Interest or share of profit on saving deposits and Any     person

responsible for     making

 10% if there is TIN;

 

 

Sl No Heads Withholding authority Rate
fixed deposits etc. [Section 53F(1)] such payment 15% if there is    no    TIN (not applicable if the    balance does         not exceed tk. 1 lakh at any time in the year in case 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 a bank with       prior approval    of the Government

)

 

 

Sl No Heads Withholding authority Rate
Interest or share of profit on any saving deposits or fixed deposits or any term deposit by or in the name of a fund

[Section 53F(2)]

 Any     person responsible for     making such payment 5%

পতরতশষ্ট 20

দ্রষ্টব্য
39 Real        estate    or    land development business

(Section 53FF)

 Any     person responsible for registering any document for transfer       of any land or building      or apartment Building    বা

apartment এর বেদে:            পতরতশষ্ট

2১ দ্রষ্টব্য

 

Land                   এর বেদে:

(i)        (i)5%

for     Dhaka, Gazipur, Narayanganj

,

Munshigang

, Manikganj, Narsingdi & Chittagong district;

(ii)       (ii) 3% for any other district
40 Insurance commission Any     person responsible 5%

 

 

Sl No Heads Withholding authority Rate
(Section 53G) for       paying such commission to a resident
41 Fees of survey or so for general               insurance company

(Section 53GG)

 Any    person responsible for       paying such fees to resident 10%
42 Transfer of property (Section 53H) Any     person responsible for registering any document As mentioned in       section 53H.
43 Collection of Tax from lease of property

(Section 53HH)

 Any registering officer responsible for registering any document    in relation       to any         lease granted       by Rajuk, CDA, RDA,    KDA

&   NHA   or any        other

 4%

 

 

Sl No Heads Withholding authority Rate
person being an individual, a firm,           an association of persons, a Hindu undivided family,         a company   or any artificial juridical person
44 Interest on deposit of post office

Saving bank account (Section 53I)

 Any     person responsible for     making such payment 10%
45 Rental value of vacant land or plant or machinery

(Section 53J)

 The Government or              any

authority, corporation or           body including    its units, or any NGO,       any university or medical college,

dental

 5% of the rent

 

 

Sl No Heads Withholding authority Rate
college, engineering college responsible for      making such payment
46 Advertisement                of newspaper or magazine or private television channel or private radio station or any web site or any person on account of advertisement                 or purchasing airtime of private television channel or radio station or such website.

(Section 53K)

 The Government or any other authority, corporation or          body, including its units or any company    or any   banking company    or any insurance company    or any cooperative bank or any NGO or any university or medical college       or dental college       or engineering

college responsible

 4%

 

 

Sl No Heads Withholding authority Rate
for      making such payment
47 Transfer of shares by the sponsor shareholders of accompany listed with stock exchange

(Section 53M)

 Securities & Exchange

Commission or          Stock Exchange

 5%
48 Transfer of shares of any Stock Exchange

(Section 53N)

 The principal officer of a Stock Exchange 15% (on gain)
49 Any sum paid by real estate developer to land owner

(Section 53P)

 any      person engaged     in real estate or land development business 15%
50 Dividends (Section 54) The principal officer of a company Resident/non

-resident Bangladeshi company    — 20%

 

Resident/non

-resident Bangladeshi

person other

 

 

Sl No Heads Withholding authority Rate
than company

-If          TIN, 10%

-If No TIN, 15%
51 Income from lottery (Section 55) Any     person responsible for     making such payment 20%
52 Income of non-residents (Section 56):

(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

 Specified person        as mentioned in section 52 or any        other person responsible for     making payment to a non-resident As prescribed in section 56

 

(পতরতশষ্ট    22 দ্রষ্টব্য)

 

 

Sl No Heads Withholding authority Rate
(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

 

 

Sl No Heads Withholding authority Rate
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 56

 

পতরতশষ্ট 15

 

Rate of deduction under section 52

 

16.                     Deduction of tax from payment to contractors, etc.¾

 

  • The rate of deduction of income tax under section 52 shall be the following–

 

  • subject to clause (b), in case of a payment made under sub-section (1) of section 52, the deduction on payment shall be at the rate specified in the Table-1 below:–

 

Table-1

 

Sl

. N

o.

 Amount Rate of deducti on of tax
1. Where base amount does not

exceed taka 50 lakh

 3%
 

2.

 Where base amount exceeds 50 lakh but does not exceed taka 2

crore

  

5%
3. Where base amount exceeds taka

2 crore

 7%

 

  • the rate of deduction from the following classes of persons shall be at the rate specified in the Table-2 below:–

 

Table-2

 

Sl.

No.

 Amount Rate of deduc tion of tax
1. In case of oil supplied by oil

marketing companies

 0.6%
2. In case of oil supplied by dealer or agent (excluding petrol pump station) of oil marketing

companies, on any amount

 1%
3. In case of supply of oil by any

company engaged in oil refinery, on any amount

 3%
4. In case of company engaged in

gas transmission, on any amount

 3%
5. In case of company engaged in

gas distribution, on any amount

 3%
6. In case of an industrial undertaking engaged in producing

cement, iron or iron products except MS Billets

 2%
7. In case of an industrial undertaking engaged in the

production of MS Billets

 0.5%
8. In case of locally procured MS

Scrap

 0.5%
9. In case of supply of rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, jute, cotton, yarn and

all kinds of fruits

 2%

 

  • The rate of tax under sub-rule (1) shall be fifty percent (50%) higher if the payee does not have twelve-digit Taxpayer’s Identification Number at the time of making the
  • The rate of tax under sub-rule (1) shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer or by mobile financial services or any other digital means approved by Bangladesh Bank;
  • Where the payee or the income of the payee, which is subject to tax at source under section 52, is exempted from tax or is subject to a reduced tax rate in an income year, the Board may, on an application made by the payee in this behalf, give a certificate in writing that the payment referred to section 52 for that income year shall be made without any deduction or with deduction at a proportionately reduced rate, as the case may

 

 

পতরতশষ্ট 16

Rate of deduction under section 52A

 

 

Description of payment Rate of deduction of tax
Where base amount does not exceed taka 25 lakh 10%
Where base amount exceeds taka 25 lakh 12%

 

পতরতশষ্ট 17

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

 

 

 

SL.

No

  

Description of service and payment

 Rate of deduction of tax
Where base amount does not exceed Tk. 25 lakh Where base amount exceeds Tk. 25

lakh
1 Advisory     or     consultancy service 10% 12%
2 Professional               service, technical services fee, or technical assistance fee 10% 12%
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;

 

 

 

SL.

No

  

Description of service and payment

 Rate of deduction of tax
Where base amount does not exceed Tk. 25 lakh Where base amount exceeds Tk. 25

lakh
(ix)                    Training, workshop, etc. organization and management service;

(x)                       Courier service

(xi)                    Packing and Shifting service

(xii)                     any other service of similar nature-

(a)                            on commission or  fee

(b)                            on gross bill amount

  

 

 

 

 

 

 

 

 

 

 

 

 

10%

1.5%

  

 

 

 

 

 

 

 

 

 

 

 

 

12%

2%
4 Media buying agency service

(a)         on commission or fee

(b)        on gross bill amount

  

10%

0.5%

  

12%

0.65%
5 Indenting commission 6% 8%
6 Meeting fees, training fees or honorarium 10% 12%
7 Mobile network operator, technical support service provider or service delivery agents engaged in mobile 10% 12%

 

 

 

SL.

No

  

Description of service and payment

 Rate of deduction of tax
Where base amount does not exceed Tk. 25 lakh Where base amount exceeds Tk. 25

lakh
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-

a.              on commission or fee

b.              on gross bill amount

  

10%

1.5%

  

12%

2%
13 (i)                         Transport service, carrying service, vehicle rental service

(ii)       Any other service under any sharing economy platform including ride sharing service, coworking space providing service and accommodation providing service

 3% 4%
13A Wheeling        charge        for electricity transmission  

2%

  

3%
14 Any other service which is not mentioned in Chapter VII of this Ordinance and is not a 10% 12%

 

 

 

SL.

No

  

Description of service and payment

 Rate of deduction of tax
Where base amount does not exceed Tk. 25 lakh Where base amount exceeds Tk. 25

lakh
service    provided    by    any

bank, insurance or financial institutions