BRPD Circular Letter No. 05: Tax Deducted at Source on the payments to Port Inland Container Depot (ICD)/ Off-Dock Terminal /Container Freight Station.

BRPD Circular Letter No. 05 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. March 04, 2014 BRPD Circular Letter No.- 05 Date: ---------------------- Falgun 20, 1420 Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh Dear Sir, Subject: Regarding Tax Deducted at Source on payments made to Port Inland Container Depot (ICD)/ Off-Dock Terminal /Container Freight Station /Inland Container Depot.

A copy of the National Board of Revenue (NBR) letter no. 08.01.0000.030.07.003.2013.184 dated January 23, 2014, is reproduced below for your information and necessary action.

2. You are advised to immediately follow the instructions contained in the NBR circular mentioned above and ensure its compliance.

Please acknowledge receipt.

Yours faithfully, (Md. Anowarul Islam) Deputy General Manager Phone: 9530084

Government of the People's Republic of Bangladesh National Board of Revenue Shahid Bhavan, Segun Bagicha, Dhaka. [Tax Policy Branch] File No.- 08.01.0000.030.07.003.2013.184 Date: 23.01.2014 Subject: Regarding Tax Deducted at Source on payments made to Port Inland Container Depot (ICD)/ Off-Dock Terminal /Container Freight Station /Inland Container Depot.

Under the provisions of Section 52AA of the Income Tax Ordinance, 1984, there is a provision to deduct tax at source at the rate of 10% on any payment made for services other than those specifically listed in Appendix 'B' of the said Ordinance.

It has been brought to the notice of the National Board of Revenue that there is confusion at the field level regarding whether tax should be deducted at source from payments made for services such as staffing, container handling, transportation, documentation, allocation of space for container storage, etc., provided to Private Inland Container Depots (ICDs)/Off-Dock Terminals/Container Freight Stations/Inland Container Depots by the payers (importers/exporters, freight forwarders, customs house agents, and other users of private port services, corporations, companies, banks, insurance companies, etc.).

In this regard, the National Board of Revenue hereby clarifies that payers (importers/exporters, freight forwarders, customs house agents, and other users of private port services, corporations, companies, banks, insurance companies, etc.) are required to deduct tax at source at the rate of 10% at the time of payment for services such as staffing, container handling, transportation, documentation, allocation of space for container storage, etc., performed by Private Inland Container Depots (ICDs)/Off-Dock Terminals/Container Freight Stations/Inland Container Depots, in accordance with Section 52AA of the Income Tax Ordinance, 1984.

Signed: Md. Abdur Rahman Khan, FCMA First Secretary (Tax Policy) National Board of Revenue, Dhaka.