Important withholding tax at source Head of Withholding

Important withholding tax at source Head of Withholding Authority WHT Rates Salaries Any person responsible for making payment Average rate applicable Payment to contractors & sub-contractors Any person responsible for making payment Upto Tk. 2, 000 nil 2, 001 - 5, 000 - 1% 5, 001 - 15, 000 - 2. 5% 15, 001 - 25, 000 - 3. 5% 25, 001 - 3, 00, 000 -4% > 3, 00, 000 – 5% In case of oil supplied by oil marketing companies: Up to Tk. 200, 000 Nil More than Tk. 200, 000 - 0. 60% Dealer or agent of oil marketing companies ---- - 1% Supply of oil by oil refinery - -3% Supply of Gas by Gas transmission company----3% Supply of Gas by Gas distribution company------3% 1

Rate of WHT at Source Head of Withholding Authority WHT Rates Fees for Doctors The PO of a company or the CEO of a NGO or trust responsible for making payment 10% Royalty or Technical know how fee Government, corporation, body, company, Bank, Insurance, co-operative , NGO etc 10% House Rent Government, corporation, body, company, Bank, Insurance, co-operative , NGO, School, College, University, Hospital, Clinic, Diagnostic Centre etc 5% 2

WHT on certain services Head of Withholding Authority WHT Rates Indenting Commission Any person responsible for making payment 7. 5% Shipping Agency Commission Any person responsible for making payment 5% Catering Service The Government or any other authority, corporation or body, company, any NGO, or any school or any college or any university or any hospital or any clinic or any diagnostic centre -Do- 10% Cleaning service Collection and recovery agency -Do- Commission- 10% Gross- 1. 50% 3

WHT on certain services…… Head of Withholding Authority WHT Rates Contract or toll manufacturing The Government or any other authority, corporation or body, company, any NGO, or any school or any college or any university or any hospital or any clinic or any diagnostic centre 10% Credit rating agency -Do- 10% Event management- -Do- Commission- 10% Gross- 1. 50% Meeting or training fees or remuneration Mobile network operator, technical support service provider or service delivery agents engaged in mobile banking operations -Do- 10% 4

WHT on certain services…… Head of Withholding Authority WHT Rates The Government or any other authority, corporation or body, company, any NGO, or any school or any college or any university or any hospital or any clinic or any diagnostic centre 5% Printing service Private container port or dockyard service -Do- 3% -Do- 5% Private security provider- -Do- Commission- 10% Gross- 1. 50% -Do- 10% Motor garage workshop or service Product processing charge 5

WHT on certain services…… Head of Withholding Authority Stevedoring/ Berth The Government or any other authority, corporation or body, operation commission WHT Rates 10% company, any NGO, or any school or any college or any university or any hospital or any clinic or any diagnostic centre Supply of manpower- -Do- Commission- 10% Gross- 1. 50% Transport provider -Do- 3% Any other service which is not mentioned in Chapter VII of this Ordinance and is not a service provided by any bank. insurance or financial institutions -Do- 10% 6

Rate of WHT at Source Head of Withholding Authority WHT Rates C&F agency commission Commissioner of Customs 10% Biri manufacturing Any person responsible for selling banderoles to any manufacturer of cigarettes 10% of the value of the Banderoles Cigarettes manufacturing VAT Authority Compensation against acquisition of property Any person responsible for payment of such compensation Interest on Savings Certificates Any person responsible for except Wage Earners Bonds making payment 3% of MRP 2%- City corp, Pauroshova and Cant board 1% - outside areas 5% 7

Rate of WHT at Source Brick Manufacturer Any person responsible for issuing permission or renewal of permission for manufacture of bricks Tk. 45, 000 for one section brick field Tk. 70, 000 for one and half sections brick field Tk. 90, 000 for two section brick field Tk. 150, 000 for automatic brick field LC Commission Any person responsible for opening of LC Renewal of Trade License City Corporation or Pauroshova Freight forwarding agency commission Any person responsible for making payment 15% Rental Power Company BPDB during payment to any power generation company 6% 5% Tk. 500 Dhaka & Ctg City corp Tk. 300 in other city corp & puroshova in dist headquarters Tk. 100 in other pouroshova 8

Rate of WHT at Source Head of Withholding Authority WHT Rates Services from Convention Hall, Conference Centre etc Corporation, Body, Authority, N. G. O, University, College etc 5% Income from foreign person Bank/ Financial Institution 10% Import Commissioner of Custom - 5% (General Rate) - 2% (Petroleum product, MS Rod, Hide & Skin and Cell Phone etc) - Tk. 800 per ton for Scrape , billet etc Shipping business of a resident Commissioner of Custom 5% of total freight if services rendered to one foreign country 3% of total freight if services rendered to 2 or more foreign countries 9

Rate of WHT at Source Head of Withholding Authority WHT Rates Export of manpower DG, Bureau of Manpower, Employment and Training 10% Export of Knit-wear and Woven garments , terry towel, jute goods, frozen food, vegetables, leather goods, packed food Bank 0. 80% (reduced to 0. 60% till June 2016) Any other Export Bank 0. 80% (reduced to 0. 60% till June 2016) Member of Stock Exchange CEO, Stock Exchange Goods or property sold by public auction Any person making sale 0. 05% 5% of sales 10

Rate of WHT at Source Head of Withholding Authority WHT Rates Payment to actors, actress, singers, film directors, drama, advertising etc Person responsible for making payment 10% (No TDS up to taka 10, 000) Commission, Discount or Fees Any person being a corporation, body or company 10% Deemed distribution commission Any person being a corporation, body or company 3% of difference between MRP and traded price Buying Agency commission Bank 10% Interest on savings and fixed deposits Bank 10% 15% (if no e-TIN) 10% for public university, educational Institutions, ICAB, ICMAB and ICSB 11

Income Tax on sale of land – Commercial Areas- Schedule (a) SL No. Name of the commercial area or areas Rate of tax per katha (1. 65 decimal) 1. Gulshan, Banani, Motijheel, Dilkhusha, North 4% of the deed value or taka 10, 80, 000/ South Road, Motijheel Expansion areas and - whichever is higher Mohakhali of Dhaka 2. Karwan Bazar of Dhaka 4% of the deed value or taka 6, 000/whichever is higher 3. Agrabad and CDA Avenue of Chittagong 4% of the deed value or taka 3, 60, 000/whichever is higher 4. Narayanganj, Banga Bandhu Avenue, Badda, 4% of the deed value or taka 3, 60, 000/Sayedabad, Postogola and Gandaria of Dhaka whichever is higher 5. Uttara Sonargaon Janapath, Shahbag, 4% of the deed value or taka 6, 000/Panthapath, Banglamotor, Kakrail of Dhaka whichever is higher 6. Nababpur and Fulbaria of Dhaka 4% of the deed value or taka 3, 000/whichever is higher: For flat on the land, an additional tax of taka 600/- (six hundred) per square meter or four per cent of the deed value of such flat, whichever is higher is payable. 12

AIT on sale of land - Schedule (b) SL No. 1. Name of the area or areas Rate of tax per katha (1. 65 decimal) Uttara (Sector 1 -9), Khilgaon rehabilitation area (beside 4% of the deed value or taka 100 feet road), Azimpur, Rajarbagh rehabilitation area 90, 000/- whichever is higher (beside bishwa road), Baridhara DOHS, Bashundhara (Block: A–G), Niketon of Dhaka, Agrabad, Halishohar, Panchlaish, Nasirabad, Mehedibag of Chittagong 2. Gulshan, Banani and Baridhara of Dhaka 4% of the deed value or taka 3, 000/- whichever is higher 3. Dhanmondi of Dhaka 4% of the deed value or taka 2, 40, 000/- whichever is higher 4. Kakrail, Segunbagicha, Bijoynagar, Eskaton, Green 4% of the deed value or taka Road, Elephant Road, Fakirapool, Arambagh, 1, 80, 000/- ever is higher Maghbazar (within one hundred feet of main road), Tejgaon Industrial Area, Sher-e-Banglanagar Administrative Area, Agargaon Administrative Area, Lalmatia, Mohakhali DOHS, Cantonment of Dhaka and Khulshi of Chittagong 13

AIT on sale of land - Schedule (b) SL No. 5. Name of the area or areas Rate of tax per katha (1. 65 decimal) Kakrail, Segunbagicha, Bijoynagar, Eskaton, 4% of the deed value or taka Green Road, Elephant Road area (outside one 1, 20, 000/hundred feet of main road) of Dhaka 6. whichever is higher Green Road (from Road 3 to 8 of Dhanmondi 4% of the deed value or taka Residential Area of Dhaka) 2, 40, 000/- whichever is higher 7. Uttara (Sector 10 to 14), Nikunj (south), Nikunj 4% of the deed value or taka (North), Badda Rehabilitation Area, Ganderia 60, 000/- whichever is Rehabilitation Area, Syampur Rehabilitation higher Area, IG Bagan Rehabilitation Area, Tongi Industrial Area of Dhaka 14

AIT on sale of land - Schedule (b) SL No. 8. Name of the area or areas Rate of tax per katha (1. 65 decimal) Syampur Industrial Area, Postagola Industrial 4% of the deed value or taka Area and Jurain Industrial Area of Dhaka 48, 000/- whichever is higher 9. Khilgaon Rehabilitation Area (beside less than 4% of the deed value or taka 100 feet road), Rajarbagh Rehabilitation Area 72, 000/(beside 40 feet and other internal road) of Dhaka 10. whichever is higher Goran (beside 40 feet road) and Hajaribagh 4% of the deed value or taka Tannery Area of Dhaka 30, 000/- whichever is higher: For flat on the land, an additional tax of taka 600/- (six hundred) per square meter or four per cent of the deed value of such flat, whichever is higher is payable. 15

AIT on sale of land –Other areas – Sch(c) SL Name of the area or areas Rate of tax No. 1. Within the jurisdiction of Rajdhani Unnayan 4% of deed Kartripakya (RAJUK) and Chittagong Development value Authority (CDA) except areas specified in schedule (a) and (b) 2. Within the jurisdiction of Gazipur, Narayanganj, 3% of deed Munshiganj, Manikganj, Narsingdi, Dhaka and value Chittagong districts [excluding Rajdhani Unnayan Kartripakya (RAJUK) and Chittagong Development Authority (CDA)], and within any City Corporation (excluding Dhaka South City Corporation and Dhaka North City Corporation) and Cantonment Board 16

AIT on sale of land –Other areas – Sch(c) SL No. 3. 4. Name of the area or areas Rate of tax Areas within the jurisdiction of a paurasabha 3% of deed of any district headquarter value Areas of any other Pauroshova 2% of deed value 5. Any other area not specified in schedule (a), 1% of deed (b) and (c) value. 17

Rate of WHT at Source Real Estate (Flat or apartment) Registration Authority Residential Purpose: (i) Tk. 1600 per sqm for apartment situated at Gulshan, Banani, Baridhara, Motijheel, Dilkhusha, ; (ii) Tk. 1, 500 per sqm for Dhanmondi, DOHS, Mohakhali, Uttara, Bashundhora, Dhaka Cantonment, Lalmatia, Karwan Bazar and Khulshi, Panchlaish, Agrabad and Nasirabad of Chittagong (iii) Tk 600 per sqm in other area 18

Rate of WHT at Source Real Estate (flat or apartment) Registration Authority Commercial Purpose: (i) Tk. 6, 500 per sqm for apartment situated at Gulshan, Banani, Baridhara, Motijheel, Dilkhusha, ; (ii) Tk. 5, 000 per sqm for Dhanmondi, DOHS, Mohakhali, Uttara, Bashundhora, Dhaka Cantonment, Lalmatia, Karwan Bazar and Khulshi, Panchlaish, Agrabad and Nasirabad of Chittagong (iii) Tk 1, 600 per sqm in other area 19

Rate of WHT at Source Real Estate (land) Registration Authority Lease of property by Registration any person including officer Rajuk, CDA, RDA, KDA and NHA (i) Dhaka, Chittagong, Narayangonj, Manikgonj, Gazipur and Mushiganj - 5% of the deed value (ii) Any other district 3% of the deed value 4% of the deed value 20

Rate of WHT at Source Transfer of shares of demutualized stock exchanges Stock Exchanges Dividend The principal officer of a company 15% of the gain -20% for company (resident & NR) - 30% for Non-resident individual -10% for resident individual -15% for resident individual having no e-TIN 21

Rate of WHT at Source Insurance Commission Any person responsible for paying such commission to a resident 5% General Insurance Surveyors Fees Any person responsible for paying such commission to a resident 15% Interest on Post Office Savings Bank Account Any person responsible for making such payment 10% Payment for any advertising including newspaper , online or TV Government, Authority, Body, Company, Bank, Insurance, Co-operative, NGO, University, Colleges etc 4% 22

Rate of WHT at Source IGW ICX, ANS Interest on debenture Travel agency commission Soft drinks and mineral water Profit on life insurance policy Paying Bank 1% IGW 5% Bank 5% Airlines 0. 30% of ticket value or cargo value Security Printing Press 4% of vatable value of the band roles Insurance Company 5% 23

Rate of WHT at Source Local LC payment Bank 3% - No TDS if LC value is less than taka 5 lakh - No TDS on LC for essential goods, computer, jute, cotton and yarn Fees paid by mobile Mobile phone companies phone operators Bank Export cash subsidy Signing money or rent compensation Real Estate Companies 10% 3% 15% 24

Non-residents WHT Head of Withholding Authority WHT Rates Accounting or tax consultancy Any person responsible for payment 20% Advertisement making Any person responsible for payment 15% Advertisement broadcasting Any person responsible for payment 20% Advisory or consultancy service Any person payment responsible for 30% Air transport or water transport Any person payment responsible for 7. 5% Architecture, interior design or Any person landscape design payment responsible for 20% 25

Non-residents WHT Head of Withholding Authority Artist, singer or player Any person responsible for payment 20% Capital gain received. Any person responsible for (a)from capital assets (not being payment securities listed with stock exchange)— (b)by a company or firm if such gain is arising from securities listed with any stock exchange not exempted from tax in the country of such nonresident----- 15% Certification 20% Any person responsible for payment WHT Rates 10% 26

Non-residents WHT Head of Withholding Authority WHT Rates Charge or rent for satellite, airtime or Any person responsible for frequency payment 20% Contractor, sub-contractor or supplier Any person responsible for payment 5% Courier service Any person responsible for payment 15% Dividend. Any person (a)company-----payment (b)any other person, not being a company---------- responsible Insurance premium Any person payment responsible for 10% Interest, royalty or commission Any person payment responsible for 20% 30% 27

Non-residents WHT Head of Withholding Authority Legal service Any person responsible for payment 20% Machinery rent Any person responsible for payment 15% Management or event management Any person responsible for payment 20% Pre-shipment inspection service Any person payment responsible for 30% Professional service, technical Any person service fee, technical assistance fee payment or technical knowhow fees responsible for 20% Salary or remuneration responsible for 30% Any person payment WHT Rates 28

Non-residents WHT Head of Withholding Authority WHT Rates Exploration or drilling in petroleum Any person responsible for operations payment 5. 25% Survey for oil or gas exploration Any person responsible for payment 5. 25% Any service for making connectivity Any person responsible for between oil or gas field and its payment export point 5. 25% Any other payments Any person payment responsible for 30% 29

Final Settlement of Income Tax Income from some specified businesses activities by a company is treated as final settlement of tax as per provision of Section 82 C of the IT Ordinance 1984. Final settlement means company's tax obligation for these sources of income is limited to the tax that has been deducted at source at the time of receiving the income. There shall be no additional tax liability of the company on income earned by the company from these businesses and there shall not be any tax refund allowable against the tax deducted at source. However, income to be shown in tax return has to be calculated in accordance with the provision of sub section 4 of section 82 C. 30 30

Source of income that are subject to Final Settlement of Tax • • Contract or supply business -Section 52 (excluding contractor and sub-contractor of oil company, oil marketing companies and its dealers, oil refinery, gas transmission and distribution) Royalties, fees for professional services- Section 52 A(2) Clearing and Forwarding business- Section -Section 52 AAA Manufacturer of Biri- Section 52 B(1) Compensation against acquisition of property- Section 52 C Income of travel agents etc under Section 52 JJ Import of goods and sale of imported goods without further processing- Section 53 31 31

Source of income that are subject to Final Settlement of Tax • • Shipping business of a resident- Section 53 AA Export of Manpower- Section 53 B Export of any goods -Section 53 BB & 53 BBBB Commission income earned by a member of stock exchange- Section 53 BBB Auction purchase- Section 53 C Real Estate business- Section 53 FF Surveyor of general insurance -Section 53 GG Transfer of property- Section 53 H 32 32

Source of income that are subject to Final Settlement of Tax • • Transfer of securities or mutual fund unit by sponsor shareholder - Section 53 M Transfer of shares of stock exchange- Section 53 N Rental Power Business income- 52 N International Phone Calls and Gateway Service 52 S Export Cash Subsidy – Section 52 DDD Signing money including any rent compensation payable by a real estate developer company to the land owner under Section 53 P Winnings from lottery- Section 55 33 33