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 |
|||