Tax Incentives and Facilities in Bangladesh
Exemption and allowances according to ITO, 1984:
Tax rebate:
An assesse shall be entitled to a credit from the amount of tax payable on his total income of an amount equal to fifteen percent of the sums specified in paragraphs of the said Part B of ITO, 1984.
The aggregate of the allowances admissible of the Sixth Schedule Part B shall not exceed- (a) One crore and fifty lakh taka (b) exceed thirty per cent of the total income of the assesse.
Tax Exemption:
44. (4) The Government may, (a) Make such amendments by way of addition, omission, alteration or qualification (b) Make any exemption, reduction in rate in respect of tax in favor of any class of income or in regard to the whole or any part of the income of any class of persons.
Exclusion from total income:
• Any income derived from house property held under trust or other legal obligation wholly for religious or charitable purposes. • Any service charge derived from operation of micro credit by a non-government organization registered with NGO Affairs Bureau;
• Any voluntary contributions received by a religious or charitable institution and applicable solely to religious or charitable purposes;
• The income of a local government;
• Any income accruing to, or derived by, a provident fund to which the Provident Fund Act, 1925 (XIX of 1925), applies; • Any income accruing to, or derived by, workers participation fund established under the Bangladesh Labor Act, 2006;
• Any income received by the trustees on behalf of a recognized provident fund, an approved superannuation fund or pension fund and an approved gratuity fund;
• Any income of an individual, being an indigenous Hillman of any of the hill districts of Rangamati, Bandarban and Khagrachari, which has been derived solely from economic activities undertaken within the said hill districts;