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2012-07-19

Added 2026-08-12 · Updated 2026-08-14

BRPD Circular Letter No. 06: Rate of Tax at Source under Sections 52, 52R, 53BB, 53BBBB, 53DDD, 53F of the Income Tax Ordinance, 1984 via the Artho Ain, 2012

The National Board of Revenue mandates that scheduled banks in Bangladesh apply revised withholding tax rates effective July 1, 2012, pursuant to the Artho Ain, 2012. Key changes include a 1% rate on international telephone call operator payments under Section 52R, a 0.80% rate on exports of specific goods like garments and jute under Section 53BB, and a 0.80% rate on all other exports under Section 53BBBB. Additionally, a 5% rate applies to government cash incentives for exporters under Section 53DDD, while bank interest rates are set at 10% for entities with a TIN and 15% for those without, subject to a balance cap for non-TIN holders under Section 53F.

Bangladesh

Bangladesh Bank

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. July 19, 2012

BRPD Circular Letter No. 06 Date: ---------------------- Shraban 04, 1419

Managing Director / Chief Executive All Scheduled Banks operating in Bangladesh

Dear Sir,

Regarding the rate of tax at source described in sections 52, 52R, 53BB, 53BBBB, 53DDD, 53F of the Income Tax Ordinance, 1984 through the Artho Ain, 2012.

The letter No. 08.01.0000.030.03.2012/46 dated July 01, 2012 of the National Board of Revenue is reproduced below for your information and necessary action.

You are requested to follow the attached instructions immediately in all your branches and ensure their 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 Rajshahi Bhawan Segun Bagicha, Dhaka. File No. 08.01.0000.030.03.003.2012/46 Date: 01/07/2012

Subject: Regarding the rate of tax at source described in sections 52, 52R, 53BB, 53BBBB, 53DDD, 53F of the Income Tax Ordinance, 1984 through the Artho Ain, 2012 approved by the National Parliament.

With reference to the above subject, you are requested to pay attention.

In this regard, it is informed that,

Section 52 of the Income Tax Ordinance, 1984 has been amended through the Artho Ain, 2012. According to this amended provision, withholding tax shall be applicable at the rate mentioned in Rule 16 of the Income Tax Rules, 1984 when paying bills against the supply of goods through local L.C. (Letter of Credit).
A new section 52R has been added to the Income Tax Ordinance, 1984 through the Artho Ain, 2012. According to the newly added section 52R, withholding tax at the rate of 1% shall be applicable by the bank at the time of payment/credit to the account of the concerned WPC (Wireless Phone Company) operator against the provision of international telephone calls.
Section 53BB of the Income Tax Ordinance, 1984 has been amended through the Artho Ain, 2012. According to this amended provision, withholding tax at the rate of 0.80% shall be applicable on the export value for the export of network and oven garments, terry towels, garments industry cuttings and accessories, jute goods, frozen food, vegetables, leather goods, and packaged goods.
Section 53BBBB of the Income Tax Ordinance, 1984 has been amended through the Artho Ain, 2012. According to this amended provision, withholding tax at the rate of 0.80% shall be applicable on the export value for all exports other than the goods mentioned in section 53BB.
Section 53DDD has been added to the Income Tax Ordinance, 1984 through the Artho Ain, 2012. According to this added provision, withholding tax at the rate of 5% shall be applicable on the cash incentives (PDS) provided by the government as export assistance to persons or institutions engaged in export trade.
Section 53F of the Income Tax Ordinance, 1984 has been amended through the Artho Ain, 2012. According to this amended provision, withholding tax at the rate of 10% shall be applicable on bank interest/profit of persons/institutions having a TIN, and at the rate of 15% on bank interest/profit of persons/institutions not having a TIN. However, for those persons/institutions not having a TIN, if the total balance in their savings bank account does not exceed 1 lakh Taka at any time during the year, withholding tax at the rate of 10% shall be applicable on the interest/profit of such bank accounts.
The above changes shall be effective from 01/07/2012. It is requested to instruct all concerned to withhold/collect tax at source according to the amended provisions.

Signed -

(Syed Md. Aminul Karim) Member (Tax Policy) National Board of Revenue