Regulatory Alerts2014-11-17
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DFIM Circular Letter No. 12: Updating of 12-digits TIN of Account Holders of Scheduled Banks and Financial Institutions under Section 53F of Income Tax Ordinance, 1984
Scheduled banks and financial institutions must deduct source tax at a rate of 10% on interest or profit payments if the account holder possesses a 12-digit Tax Identification Number (TIN) on the payment date; otherwise, a 15% withholding tax rate applies. This directive implements amendments to Section 53F of the Income Tax Ordinance, 1984, introduced via the Finance Act, 2014, and requires all branches to strictly follow these instructions.
Department of Financial Institutions and Markets Department of Financial Institutions and Markets Bangladesh Bank Head Office Dhaka. November 17, 2014
DFIM Circular Letter No. 12 Date: ------------------- 3rd Agrahayan, 1421
Managing Director / Chief Executive Officer All Financial Institutions operating in Bangladesh.
Dear Sir,
Regarding the updating of 12-digit TIN of Account Holders of Scheduled Banks and Financial Institutions under Section 53F of the Income Tax Ordinance, 1984.
A copy of the letter No. 08.01.0000.030.07.006. 2014/121(10) dated 26/10/2014 of the National Board of Revenue on the subject mentioned above is reproduced hereunder for your information and necessary action.
- You are requested to follow and ensure compliance with the instructions given below.
Please acknowledge receipt.
Yours faithfully,
(Mohammad Ahmad Ali) Deputy General Manager Phone: 9530010-75/3164
Government of the People's Republic of Bangladesh National Board of Revenue Segunbagicha, Dhaka-1000. [Tax Policy Branch] 11 Kartik, 1421 Bangabda File No. 08.01.0000.030.07.006. 2014/121(10) Date: ---------------------- 26 October, 2014 AD
Regarding the updating of 12-digit TIN of Account Holders of Scheduled Banks and Financial Institutions under Section 53F of the Income Tax Ordinance, 1984.
In light of the amendments brought to Section 53F of the Income Tax Ordinance, 1984, through the Finance Act, 2014, the National Board of Revenue is issuing the following instructions: All scheduled banks and financial institutions shall deduct source tax at a rate of 10% on the interest/profit paid by the scheduled bank and financial institution on the date of crediting or depositing interest/profit to the account of each customer, provided the customer has a 12-digit TIN on that date; and if the customer does not have a 12-digit TIN on that date, source tax shall be deducted at a rate of 15% on the interest/profit.
Signed
Md. Jashim Uddin Ahmed Second Secretary (Tax Law-1) Mobile: 01720219733
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