Taxability by resident status in Bangladesh

Who is to pay tax? [Residential Status Sec. 2(55)]

Taxability of a person is determined on the basis of his residential status. Anyone is staying in the taxable territory for 182 days or more in the income year or 365 days at a time or consecutively within 04 years immediately before the income year just preceding the assessment year plus a minimum of 90 days in the income year, shall be deemed to be resident, otherwise, a non-resident.

Non-resident except a Bangladeshi non-resident has to pay tax at the maximum rate of 25%irrespective of total income. Moreover, a Non-Resident shall not be entitled to any sort of tax rebate like investment tax rebates etc. 

Companies and other statutory bodies shall be resident if their control and management is wholly situated in Bangladesh. HUF, firms or other Association of Persons shall be resident in Bangladesh if its control and management is situated wholly or partly in Bangladesh in that year.

Assessment year means the Govt. financial year just following the income year when the assessment is to be made.

Income year is the year when the income is earned. Different tax payers may have different income year but each tax payer must fall within a particular assessment year. Income year is otherwise the year just preceding the assessment year.