Deduction from insurance commission

Deduction at source from fees of surveys of general insurance company

10% tax rate In case of persons other than Company, provided that the persons/individuals submitted the proof of return (PSR). If the individual did not submit PSR to the responsible person, then the tax rate will increase by 50% to 15%. In case of a minor, the PSR of his/her parent shall be considered as the PSR of such minor.

Deduction from interest on saving deposit and fixed deposit etc. (persons other than Company)

Deduction at source from interest on deposit of post office savings bank account

Deduction from interest income of resident other than bank or financial institution

Deduction at source from interest on securities of Government (including Govt. T-Bill & T-Bond) or any person responsible for issuing securities  approved by BSEC

Rent payment for house property or hotel accommodation or vacant land or plant or machinery

Section 110 is applicable on the full invoice amount including food expense (if any) and service charge amount (if any). Section 110 is not applicable to anything other than the invoice amount provided by the convention hall, conference center etc. However, For example, if food is provided by someone else other than by the conference hall, then in this case it will fall under Section 110.

Deduction of tax for making payment to convention hall, conference center etc.

Deduction of tax at source from export cash subsidy

Deduction of tax at source from freight forward agency commission

Deduction of tax against purchase of power from Bangladesh Power Development Board or any other person engaged in power distribution

Deduction of tax from income received from real estate developer to land owner

Deduction of tax from commission or remuneration paid to agent of foreign buyer

Deduction from income from lottery, crossword puzzles, card game, online game etc.

Collection of tax from export manpower

Collection of tax from clearing and forwarding agents

Collection of tax from export income

Collection of tax from commission on govt. stamp, court fees and cartridge paper

Collection of tax from lease of property

Collection of tax from cigarette manufacturers

Where any payment is to be made by a specified person to a resident on account of execution of a contract, other than a contract for providing a service, supply of goods, manufacture, process or conversion, printing, packaging or binding.Important notes: According to the Sub-section (1) of Section 142 of ITA 2023, failure to submit Proof of Submission of Return (PSR) by the taxpayer, during the time of payment, will result in 50% higher tax rate. PSR can be both tax clearance certificate as well as acknowledgement receipt.&nbsp; According to the Sub-section (2) of Section 142 of ITA 2023, the rate of tax shall be 50% higher if the taxpayer does not receive the payment by bank transfer. According to the Sub-rule (4) of Rule 3 of Withholding Tax Rules 2023, where the payee or the income of the payee is exempted from tax or is subject to a reduced tax rate in an income year, then the payment shall be made without any deduction or with deduction at a proportionately reduced rate. However, the taxpayer must share the certificated on this regard issued by the Board (NBR). Unless the taxpayer shares the certificate, tax shall be deducted at source.

Execution of a contract (Table 1) - No tobacco products

Where any payment is to be made by a specified person to a resident on account of supply of goods, other than a contract for providing a service, execution of a contract, manufacture, process or conversion, printing, packaging or binding.Important notes: According to the Sub-section (1) of Section 142 of ITA 2023, failure to submit Proof of Submission of Return (PSR) by the taxpayer, during the time of payment, will result in 50% higher tax rate. PSR can be both tax clearance certificate as well as acknowledgement receipt.&nbsp; According to the Sub-section (2) of Section 142 of ITA 2023, the rate of tax shall be 50% higher if the taxpayer does not receive the payment by bank transfer. According to the Sub-rule (4) of Rule 3 of Withholding Tax Rules 2023, where the payee or the income of the payee is exempted from tax or is subject to a reduced tax rate in an income year, then the payment shall be made without any deduction or with deduction at a proportionately reduced rate. However, the taxpayer must share the certificated on this regard issued by the Board (NBR). Unless the taxpayer shares the certificate, tax shall be deducted at source.

Supply of goods (Table 1) - No tobacco products

Where any payment is to be made by a specified person to a resident on account of manufacture, process or conversion, other than a contract for providing a service, execution of a contract, supply of goods, printing, packaging or binding.Important notes: According to the Sub-section (1) of Section 142 of ITA 2023, failure to submit Proof of Submission of Return (PSR) by the taxpayer, during the time of payment, will result in 50% higher tax rate. PSR can be both tax clearance certificate as well as acknowledgement receipt.&nbsp; According to the Sub-section (2) of Section 142 of ITA 2023, the rate of tax shall be 50% higher if the taxpayer does not receive the payment by bank transfer. According to the Sub-rule (4) of Rule 3 of Withholding Tax Rules 2023, where the payee or the income of the payee is exempted from tax or is subject to a reduced tax rate in an income year, then the payment shall be made without any deduction or with deduction at a proportionately reduced rate. However, the taxpayer must share the certificated on this regard issued by the Board (NBR). Unless the taxpayer shares the certificate, tax shall be deducted at source.

Manufacture, process or conversion (Table 1) - No tobacco products

Where any payment is to be made by a specified person to a resident on account of printing, packaging or binding, other than a contract for providing a service, execution of a contract, manufacture, process or conversion and supply of goods.Important notes: According to the Sub-section (1) of Section 142 of ITA 2023, failure to submit Proof of Submission of Return (PSR) by the taxpayer, during the time of payment, will result in 50% higher tax rate. PSR can be both tax clearance certificate as well as acknowledgement receipt.&nbsp; According to the Sub-section (2) of Section 142 of ITA 2023, the rate of tax shall be 50% higher if the taxpayer does not receive the payment by bank transfer. According to the Sub-rule (4) of Rule 3 of Withholding Tax Rules 2023, where the payee or the income of the payee is exempted from tax or is subject to a reduced tax rate in an income year, then the payment shall be made without any deduction or with deduction at a proportionately reduced rate. However, the taxpayer must share the certificated on this regard issued by the Board (NBR). Unless the taxpayer shares the certificate, tax shall be deducted at source.

Printing, packaging or binding (Table 1) - No tobacco products

Industry engaged in production of MS Billets

Industry engaged in production of cement, iron or iron products and ferroalloys (Table 2 - SRO 206/June 2023)

Industry engaged in production of cement, iron or iron products and ferroalloys (Table 2)

Local procurement of MS Scrap

Supply of books to a person other than the government, or any authority, corporation or body of the government, including all of its attached and sub-ordinate offices

Supply of books

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 cloves, dates, bay leaves, jute, cotton, yarn and all kinds of fruits

Supply of food crop, commodity, spices and fruits etc.

Supply of oil by Companies engaged in gas distribution (Table 2 - SRO 206/June 2023)

Supply of oil (Companies engaged in gas distribution) (Table 2)

Companies engaged in gas transmission (Table 2 - SRO 206/June 2023)

Supply of oil (Companies engaged in gas transmission) (Table 2)

Supply of oil by the oil marketing companies (Table 2 - SRO 206/June 2023)

Supply of oil (by the oil marketing companies) (Table 2)

Supply of oil by the oil refinery (Table 2 - SRO 206/June 2023)

Supply of oil (by the oil refinery) (Table 2)

Supply of oil by dealer or agent of oil marketing company (excluding petrol pump) (Table 2 - SRO 206/June 2023)

Supply of oil by dealer or agent of oil marketing company (excluding petrol pump) (Table 2)

Supply of power cable of&nbsp;33 KV to 500 KV extra high voltage power cable manufactured by local company has its own vertical continuous vulcanization line (Table 2 - SRO 206/June 2023)

Supply of power cable (Table 2)

Supply of industrial raw materials to a manufacturer

Supply of raw materials

Supply of tobacco products (including cigarettes, bidis, jorda, tobacco leaves and gul)

Supply of trading goods to a trader

Supply of trading goods to a trader

According to the Sub-section (1) of Section 90 of ITA 2023, where any payment is to be made by a 'specified person' to a resident for any of the following services, then the 'specified person' shall deduct tax at source on the amount payable at the rate prescribed in Rule 4 of Withholding Tax Rules 2023, not exceeding 20% at the time of payment. The tax rates and the services applicable for tax deduction for a resident under Rule 4 of the Withholding Tax Rule 2023 are as follows:

SL (1). Advisory or consultancy service

SL (10). Private container port or dockyard service

SL (11). Shipping agency commission

SL (12)(1). Stevedoring/breth operation commission or fee

SL (12)(2). Stevedoring/breth operation total bill

SL (13)(1). Transport service, vehicle rental service (car rental)

SL (13)(2). Any type of sharing economic platform (namely: Pathao, uber, obhai), coworking space providing service (namely: Moar Bangladesh, CoSpace etc.) and accommodation providing service

SL (13)(2). Carrying service

SL (13)(2). Co-working space providing service

SL (13)(2). Repair and maintenance service

SL (13)(2). Ride sharing service

SL (14). Wheeling charge for electricity transmission

SL (15). Internet service

SL (16). Agents, distributors, agencies or channel partners of a mobile financial service provider

SL (17). Any other service (excluding services provided by a bank, insurance, mobile financial service or financial  institution)

SL (2). Professional service or technical service fee or technical know-how or technical assistance fee

SL (5). Indenting commission

SL (6). Meeting fees, training fees or honorarium

SL (7). Mobile network operator, technical support service provider or agent of mobile banking (namely: bKash, Nagad, Rocket pay, Upay) operation

SL (8). Credit rating service

SL (9). Motor garage or workshop

SL (3)(i). Catering service

SL (3)(ii). Cleaning service

SL (3)(iii). Collection & recovery service

SL (3)(iv). Private security service

SL (3)(ix). Training & workshop etc. management service

SL (3)(v). Supply of manpower

SL (3)(vi). Creative media service

SL (3)(vii). Public relations service

SL (3)(viii). Event management service

SL (3)(x). Courier service

SL (3)(xi). Packing & shifting service

SL (3)(xii). Any other service of similar nature

Details &amp; examples of Section 91 Deduction from payment for intangible property:-&nbsp; (What is Section 91 about? How to calculate using Section 91? What are the products and Services fall under Section 91?) A person responsible for payment of royalty, franchise or license, trademark, patent, copyright, industrial design, plant variety, geographical indication product or any other property relating to intellectual property or intangible or intangible or intangible matter, at the time of such payment or credit, shall deduct tax at the rate as mentioned below:- (a) If the base price does not exceed BDT 25 (twenty-five) lakhs: 10% (ten percent) (b) If the base price exceeds BDT 25 (twenty-five) lakhs: 12% (twelve percent) In order to perform calculation under Section 91, the base amount of the invoice is required. If the base amount does not exceed 25 Lakhs, then 10% source tax rate will be applied on the base amount and if the base amount exceeds 25 Lakhs, then 12% source tax rate will be applied on the base amount .

Deduction from payment for intangible property (Royalty, franchise or license, trademark etc.)

Deduction of tax from advertising bill of airtime on private TV channel and radio station

Deduction of tax from advertising bill for airtime on private TV channel and radio station

Deduction of tax from advertising bill of magazine or newspaper

Deduction of tax from advertising or publicity bill from any other person except media buying agent

Deduction from payment to actors, actresses, producers, etc.

Sub-section (1) deals with Commission, discount, fees, incentive or performance bonus or any other performance related incentive or any other payment or benefit of the similar nature for distribution or marketing of goods, Under this sub-section, a company shall deduct tax at source at 10% from a payment to any distributor or to any other person by way of commission, discount, fees, incentive or performance bonus, or other performance related incentive or any other payment or benefit of the similar nature for distribution or marketing of goods.

Deduction at source from payment/allowance to a distributor for commission, discount, fees, bonus etc.

Sub-section (2) deals with Payments to any person engaged in distribution or marketing of a company or its goods and services. Any person involved in the marketing or marketing of the products of a company or firm shall be taxed at the rate of 1.5% (1.5 percent) on the person responsible for the payment, the person responsible for the payment, the money received for marketing or marketing the product. The difference between Sub-section (1) and Sub-section (2) of Section 94 is that, Sub-section (1) is related to performance related payment, and Sub-section (2) is related to Service related payment.

Deduction at source from payments to any person engaged in distribution of goods and services

Deduction at source from payments to any person engaged in marketing of the company

Sub-section (3) deals with Sell of goods to a distributor or any other person. Any company or firm other than an oil marketing company shall collect tax at the rate of 5% (five per cent) on the equivalent value of (b * c) from such distributor or any other person under the contract for selling goods at a price less than the retail price fixed by the said company or firm, where b = selling price of the company or firm to the distributor or any other person and c = 5% (five percent).&nbsp; Provided that, the cigarette manufacturing company or firm shall collect tax from the said distributor or any other person at the rate of 3% (three percent) of the difference between the sale price of the product to the distributor or any other person and the retail price fixed by that company or firm.

Collection at source from payment to any company or firm (other than oil marketing company) selling to distributor or person under contract

Deduction at source from the commission on Letter of credit (LC)

Sub-section (1) deals with Loan facility under Local L/C provided by a bank or financial institution for the purchase of any goods in Bangladesh from any person with the purpose to resale the goods after processing or conversion. Where an issuing bank or financial institution gives any loan facility under Local L/C to a person (Person A) for the purchase of any goods in Bangladesh from any person (Person B). Provided that, the Person A shall resale the goods after process or conversion. In that case, the said bank or financial institution shall deduct tax at the rate of 3% on the loan amount at the time of payment to Person B or at the time of lending to Person A.

Deduction from payment on account of local Letter of credit (for trading or reselling after process or conversion)

Sub-section (2) deals with Credit facility against invoice provided by a bank or financial institution to a distributor for the purchase of any goods and supply to the ultimate consumer either directly or through any other intermediary without any processing or conversion of the purchase goods. Where an issuing bank or financial institution gives any credit facility to a distributor (Person D), allowing them to purchase goods against invoices from a company (Person C). Under this arrangement, the distributor receives the invoice amount as a loan from the said bank or financial institution to buy goods from the company (Person C). In this case, the said Bank or the financial institution shall deduct tax at a rate of 1% from the loan amount while lending to the distributor (Person C).

Deduction from payment on account of local Letter of credit (for financing agreement against invoice or sale of goods to distributor)

Sub-section (3) deals with Loan facility, Credit facility and any other financing arrangements for the purchase of certain goods. In respect of purchase or procurement of of Rice, Wheat, Round Potato, Onion, Garlic, Beans, Chickpeas, Lentils, Ginger, Turmeric, Dry Chillies, Dal, Corn, Coarse Flour, Flour, Salt, Edible Oil, Sugar, Black Pepper, Cinnamon, Nuts, Cloves, dates, cassia leaves, computer or computer parts, jute, cotton, yarn and all kinds of fruits if a local letter of credit (L/C) opened or any other financing arrangement managed, then the Bank or Financial Institution shall deduct tax at the rate of 2% on the amount paid or loaned.&nbsp;

Deduction from payment on account of local Letter of credit (for the purchase 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 and computer or computer accessories)

Deduction of tax from fees of mobile phone operator

Section Number	Sub-Section Number	Title	TIN Required	PSR Required	TDS Exemption
Section 100		Deduction from insurance commission	^No	^No	^No
Section 101		Deduction at source from fees of surveys of general insurance company	^No	^No	^No
Section 102	(1)(b)	Deduction from interest on saving deposit and fixed deposit etc. (persons other than Company)	^No	^Yes	^No
Section 103		Deduction at source from interest on deposit of post office savings bank account	^No	^No	^No
Section 104		Deduction from interest income of resident other than bank or financial institution	^No	^Yes	^No
Section 106		Deduction at source from interest on securities of Government (including Govt. T-Bill & T-Bond) or any person responsible for issuing securities approved by BSEC	^No	^No	^No
Section 109		Rent payment for house property or hotel accommodation or vacant land or plant or machinery	^No	^No	^No
Section 110		Deduction of tax for making payment to convention hall, conference center etc.	^No	^No	^No
Section 112		Deduction of tax at source from export cash subsidy	^No	^No	^No
Section 113		Deduction of tax at source from freight forward agency commission	^No	^No	^No

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