Regulatory Alerts2024-04-23
Added
FEPD Circular Letter No. 04: Circulation of Gazette issued by National Board of Revenue (Income tax) on Offshore Banking Operation in Bangladesh
The National Board of Revenue exempts offshore banking units established under the Offshore Banking Act, 2024 from imposing tax on interest or profit distributed to non-resident depositors or non-resident borrowers of Bangladesh. This exemption is granted under Section 76(1) of the Income Tax Act, 2023. The notification, S.R.O. No. 100-Law/Income Tax-29/2024, was issued on April 22, 2024, and became effective immediately upon issuance.
FEPD Circular Letter No. 04: ------------------ Gazette No. 23, 2024 Circular Letter No. 04 of the Deputy Commissioner of Taxes:
Subject: Amendment to the Offshore Banking Rules, 2024 (Gazette dated 02 February 2024) regarding the exemption of non-resident depositors (individuals) from tax on interest/profit distributed by offshore banking units.
Reference is made to Circular Letter No. 01 of the Deputy Commissioner of Taxes, dated 18 March 2024.
- It has been observed that in the 15th paragraph of the Offshore Banking Rules, 2024 (Gazette dated 02 February 2024), the exemption from tax on interest or profit distributed to non-resident depositors (individuals) by offshore banking units, as per the notification of the non-resident individual tax exemption Circular Letter No. 22, 2024, was not properly reflected in the official gazette notification and the relevant official gazette. Accordingly, the following amendment has been made to the Offshore Banking Rules:
Amendment: 01 Paragraph. (G.K.Gg. Deputy Commissioner of Taxes) Deputy Commissioner (Deputy Commissioner) (Deputy Commissioner) Date: 9530123
Government of the People's Republic of Bangladesh National Board of Revenue (Income Tax) Notification Date: 09 Ashshakh 1431 Bangla / 22 April 2024 S.R.O. No. 100-Law/Income Tax-29/2024.—In exercise of the powers conferred by sub-section (1) of Section 76 of the Income Tax Act, 2023 (Act No. 12 of 2023), the National Board of Revenue hereby exempts any depositors or non-resident borrowers of Bangladesh from offshore banking units established under the Offshore Banking Act, 2024 (Act No. 02 of 2024) from tax on interest or profit distributed to them.
- This notification shall come into force immediately.
By Order of the National Board of Revenue
Md. Rahmat Ali Senior Secretary Administration Division, Ministry of Finance
and
Chairman National Board of Revenue.
website: www.bgpress.gov.bd