Reduced tax rates applicable to local authority
25% reduced tax rate will be applicable for following local bodies:
WASA (Dhaka, Chattogram, Khulna
and Rajshahi
BREB BPDP
Bangladesh Hi-Tech Park Authority RDA Chattogram Port Authority
Bangladesh Civil Aviation Authority CDA Pyra Port Authority
National Housing Authority BTRC Bangladesh Bridge Authority
Mongla Port Authority RAJUK IDRA
Bangladesh Television BEPZA BWAPDA
Borendra Multipurpose
Development Authority (Rajshah)
BIWTA KDA
All Sustainable and Renewable Energy Development Authority
9.12.6 Capital gains tax
9.12.6.1 Capital gains tax on sale of shares of listed companies
Capital gain from transfer of stocks and shares of public limited companies
listed with stock exchange except listed Govt. securities:
Particulars Rate
a) For resident companies and firms 10%
b) Capital gain tax of non-resident shareholders (refer to section 5.9) 15%
c) For sponsor shareholders and shareholder directors 5%
d) For resident individual holding at least 10% of the total share capital
of the company
5%
Capital gains tax on sale of stocks and shares of public limited companies
listed with stock exchange in respect of resident individual assessee shall be
exempt from tax unless such residents fall in categories (c) and (d) above.
9.12.6.2 Capital gains tax other than sale of shares of listed companies
In the case of a company, income from capital gains will be separated from
total income and tax at 15% is payable on such capital gains regardless of the
period of holding of the asset from the date of its acquisition.
In the case of an assessee other than a company, if the asset is transferred
before the expiry of five years from the date of acquisition, the capital gains
will be taxed at the usual rate applicable to the assessee’s total income
including the capital gains. If the asset is transferred at any time after expiry of
five years from the date of its acquisition, the capital gains will be taxed at the
usual rate applicable to the assessee’s total income including the capital gains
or at the rate of 15% on the amount of capital gains whichever of the two is
lower.
9.12.7 Tax on dividend/remittance of profit
A company paying dividends shall withhold tax at the rate of 20% on dividend
payable to a company and at 10% (subject to furnishing 12-digit Tax Payer’s
Identification Number) or 15% on dividend payable to a resident individual.
A company paying dividends shall withhold tax at the rate of 30% on dividend
payable to any non-resident individual (other than a company).
If the stock dividend declared or distributed by a listed company exceeds the cash
dividend in any income year, 10% tax on the whole amount of the stock dividend
will be applicable. Such tax cannot be adjusted with any other tax liability of
the company. The provision is also applicable if any cash dividend is not
declared or distributed in the income year.
A branch company shall withhold tax at the rate of 20% while remitting profit
to Head Office.
However, in cases where the dividend is payable to a shareholder resident in a
the country with which Bangladesh has signed a tax treaty, the rate mentioned in
the tax treaty will apply subject to confirmation/certification from NBR
Further, any distribution from mutual fund or alternative investment fund
would be subject to tax like dividend declared by a company.