Bangladesh Payroll Compliance Map

Email: dac4ww@evershinecpa.com
A-16, 1st Floor, Aruna Asaf Ali Marg, Qutub Institutional Area, Dhaka, 110067, Bangladesh
Manager Punit Singh Negi, speak English.
Skype: cspunitnegi

WWT – Bangladesh Payroll Income Tax Deduction

WWT-BD-01 WWT Tax Entity

Is the Bangladesh salary income tax levied in national or locals? Or both national and locals?
Are the national and local personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Evershine RD:

The Bangladeshi national government has enacted laws to collect income taxes.
Income taxes are regulated by the Income Tax Ordinance and its amendments.
Income tax rates are levied on a progressive scale, with rates ranging from 0% to 30%.

Range of Tax-Year Income (Bangladesh Taka)	Income Tax Rate
Up to 300,000	0%
More than 300,000 and up to 400,000	5%
More than 400,000 and up to 700,000	10%
More than 700,000 and up to 1.1 million	15%
More than 1.1 million and up to 1.6 million	20%
More than 1.6 million	25%

Employers must withhold income tax from an employee’s paycheck at the time of each payment.
Payroll tax withhold in Bangladesh is named Tax Deducted at Source (TDS) on salaries.

WWT-BD-02 Registration

The Bangladesh salary income tax collection is under the jurisdiction of which government unit?
The registration of the Bangladesh salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate?
What is the advance certificate number of the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Evershine RD:

The income tax law is administered by the Ministry of Finance and the National Board of Revenue.
Employers and individuals must register with the National Board of Revenue and receive a tax identification number (TIN) by submitting an “Application form for Taxpayer’s Identification Number”.
Registration can be done online via the E-TIN registration system that sends completed registration information through to the National Board of Revenue to allow employers to pay taxes online.

WWT-BD-03 WWT Order (OD)

What is the order of Bangladesh salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Evershine RD:

Same Period (SP) : Report and pay at the same time.

WWT-BD-04 Mechanism of Filing (MOF)

Bangladesh’ salary income tax withholding declaration (information flow determines the tax base) What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Evershine RD:

Statement of deduction of tax under the heading of “Salaries” as per Section 50 must be submitted within 20^th of the month following the end of the month in which the deduction has been made.
Manual filing method.
The prescribed format is provided under the rule 21 of manual part II.

WWT-BD-05 Mechanism of Payment (MOP)

What is the funding method for the Bangladesh salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Evershine RD:

According to section 59 of Income Tax Ordinance 1984, the tax deducted or collected at source shall be deposited within prescribed time.

Rule 13 has the deadline for deposit or collection of TDS.

Time of deduction or collection	Date of credit the payment to Government
Months from July to May	Within 2 weeks of the following months
Days from 01 to 20 June	Within 7 days after the deduction or collection
Days from 21 to 28 June	The next day of the deduction or collection
Days from 29 to 30 June	Same day

Prepare the Pay Order instruction and remit the TDS through an income tax challan into the Bangladesh Bank or the Sonali Bank.

BNF – Deduction of Employee Social Welfare

BNF-BD-01 BNF Entity

Bangladesh’s social insurance, medical insurance, pensions, and other employee social welfare levy, is it national? Is it locals? Or is there a national plus local?
If there is a national and locals, are they levied separately? Or levied together? What is the withholding tax rate?

Evershine RD:

There are no social taxes in Bangladesh.
Retirement plans are fully funded by the government and do not require any employer or employee contributions.
Companies with paid-up capital of BDT10 million or more and fixed assets of BDT20 million or more must set up a Workers’ Profit Participation Fund (WPPF).
Minimum contribution by the employer is 5% of net profit before tax into a Workers Profit Participation Fund.

BNF-BD-02 Registration

Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Evershine RD:

There are no social taxes in Bangladesh.
Retirement plans are fully funded by the government and do not require any employer or employee contributions.
The Ministry of Social Welfare administers the old age pensions.
Old age pensions are paid to all individuals 75 and older.

BNF-BD-03 BNF Order (OD)

What is the order of the withholding declaration of social welfare for Bangladesh employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Evershine RD:

There are no social taxes in Bangladesh.

BNF-BD-04 Mechanism of Filing (MOF)

What is the method of reporting for withholding of social benefits for Bangladesh employees (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? Every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Evershine RD:

There are no social taxes in Bangladesh.

BNF-BD-05 Mechanism of Payment (MOP)

What is the funding method for Bangladesh employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Evershine RD:

There are no social taxes in Bangladesh.

Contact 

Dhaka Evershine BPO Service Limited Corp.
Email: dac4ww@evershinecpa.com
A-16, 1st Floor, Aruna Asaf Ali Marg, Qutub Institutional Area, Dhaka, 110067, Bangladesh
Manager Punit Singh Negi, speak English.
Skype: cspunitnegi

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(version: 2024/07)Please send email to HQ4dac@evershinecpa.com

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