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Bangladesh: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 20 May 2020

22 March - Lifting of import taxes on medical and protective items:

The National Board of Revenue (NBR) waives of 12 types of safety products and test kits from import duties and taxes until 30 June 2020.

29 April - The National Board of Revenue (NBR) has not announced any specific relief measures concerning the deadlines for filing tax returns or remitting tax payments in response to the coronavirus (COVID-19) pandemic: 

value added tax (VAT) reporting and payment obligations have not been extended, and thus, for the month April 2020, the standard rules apply.

Business Income Tax 

The Government announced a tax exemption for Private Power Generation Company (“PPGC”) 

  • Income of PPGC exempt up to 31 December 2034;
  • Income of foreign nationals exempt for 3 years;
  • Interest payment on foreign loans can be paid off without Withholding Tax (WHT);
  • Royalty, Technical Know-how and Technical assistance fees payments can be made without WHT;
  • Capital Gains arising from divestment is exempt.

If commercial production starts during the period 1 January 2023 to 31 December 2024, a 100% exemption from tax if available for the first five years, and then a 50% exemption for the next three years followed by a 25% exemption for the next two years for a total of 10 years of some type of exemption.

Customs/Import and Other Miscellaneous Taxes 

The National Board of Revenue (NBR) waives 12 types of safety products and test kits from import duties and taxes until 30 June 2020.

Additional Information

Filing/Payment Deadline Extension 

  • NBR has not announced any specific relief measures concerning the deadlines for filing tax returns or remitting tax payments in response to the COVID-19 pandemic. 
  • However, considering that the country is currently in a “general holiday”, it would appear that tax return filings would be due on the next working day after the end of the general holiday, unless further clarification is provided by the NBR.

The government on 7 May 2020 approved draft legislation to extend the time for taxpayers to file their tax returns and to pay their taxes as relief measures in response to the coronavirus (COVID-19) pandemic.

Separate draft legislation to amend the value added tax (VAT) rules has been approved allowing the National Board of Revenue (NBR) to extend the time-limit for submission of VAT returns.

Taxpayers that comply with the filing and payment deadlines, as extended under the relief measures, will not be subject to penalty or interest assessments.

Additional Information