Bangladesh: Tax proposals in Finance Bill 2022

Tax measures proposed in Finance Bill 2022 include income tax and value added tax

Tax measures proposed in Finance Bill 2022 include income tax and value added tax

Income tax and value added tax (VAT) proposed measures in the Finance Bill 2022 include the following:

  • A proposed reduction to 27.5% (from 30%) of the corporate tax rate for “general companies in certain instances
  • A proposed reduction of the tax rate for listed entities to 22.5% and to 20.25% for those with initial public offerings (IPOs) for the first year of the IPO
  • A proposed reduction to 20% for listed entities that transfer 10% of shares through an IPO
  • A proposed tax on undisclosed foreign assets, at a rate ranging from 7% to 15%
  • A proposed clarification of the rules regarding amalgamation transactions with new related tax provisions
  • Proposed tax incentives and benefits for start-ups
  • A proposed modification to the definition of research and development (R&D) for tax purposes
  • Proposed changes to the rules for depreciation allowances
  • Changes to the VAT rules including measures concerning the withholding of VAT on supplies of goods, a VAT exemption for certain manufacturers, the time for making deposits of withholding tax, and other rules

Read a June 2022 report [PDF 2.1 MB] (107 pages) prepared by the KPMG member firm in Bangladesh 

 

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