“Tax Compliance 2021” book will guide you from start to end to run a business in Bangladesh. Mandatory tax filings, prescribed formats, filing deadline and penalty for non-compliance of tax requirements are discussed in this book.
Compliance is important to avoid legal consequences as well as reduce cost of doing business. And tax compliance is very important for businesses to reduce the significant tax burden. You know, non-compliances of tax filings result in penalties and punishment. There are disallowances under section 30 of the Income Tax Ordinance 1984 that fall you under tax burden at 30% on full disallowed amount. So, tax compliance will reduce the cost of your business in any country.
In this “Tax Compliance 2021” book, I have discussed in detail about corporate tax filing requirements as well as all the tax reporting requirements which will help you to understand the complete tax system in Bangladesh.
Why is the “Tax Compliance 2021” book your complete guide for business in Bangladesh?
Tax Compliance 2021 book has begun with the incorporation of business. You know the tax requirements start immediately after registration of an entity. What will be the corporate tax rate and regulatory requirements are described in this book in detail. Moreover, each year the income tax and Value Added Tax (VAT) changed through the Finance Act. Two separate lessons have been included in this book where I have discussed all the major changes that may impact your business operation in the financial year 2021-22.
Tax Deducted at Source (TDS) and VAT Deducted at Source (VDS) are important compliance requirements that shall deduct and deposit following prescribed time limit and manner. Non-compliances may fall into a huge tax burden. When and how you shall deposit the TDS and VDS to the government treasury are described in this book. I also have another book “Tax Deduction 2021” which is a practical guide for any organization. Tax Deduction 2021 will help you to know everything about TDS and VDS in Bangladesh.
Tax Compliance 2021 book is divided into a total six chapters where the above issues are discussed in the first two chapters. And broadly, other four chapters included the following most important tax compliances.
Advance Income Tax (AIT)
Advance income tax shall pay in four installments during the financial year if the latest assessed income of an assessee exceeds a certain limit. Otherwise, a penalty may be imposed by the tax authority. And during making the AIT installments, you shall be careful that the AIT amount does not fall below the 75% of the income assessed for the income year.
All the requirements that shall be complied during calculation and payment of AIT are discussed in the “Tax Compliance 2021” book. Tax returns or statements shall be submitted from time to time to the tax authority after deducting TDS and VDS, deposit of tax to the government treasury. And these tax reporting requirements shall be maintained all over the year.
Tax filings over the financial year
Each month two statements related to TDS shall be submitted to the tax circle within the specified deadline following the prescribed forms. And VAT return shall also be submitted on a monthly basis. Half-yearly withholding return of taxes shall be submitted in prescribed format.
And yearly statement 108 and statement 108A shall submit which consist the total employee salary and information related with employee annual tax return respectively. All the tax returns or statements shall be prepared in the prescribed format provided in Income Tax Rules 1984.
How the above statements or returns shall be prepared following the format are described step by step in this book. Besides these tax filings, annual corporate tax filing is one of the most important tax compliance requirements of a taxpayer.
Annual Corporate Income Tax (CIT) filing
Annual tax return shall submit within prescribed time line on tax return form including required documents. How to prepare tax returns by corporate taxpayers are discussed in the book.
And if the tax assessment done by the Deputy Commissioner of Taxes (DCT) is not satisfactory then you may go for appeal and tribunal. What are the procedures that shall be followed for appeal and tribunal are also discussed in the “Tax Compliance 2021” book?
There are also several tax requirements that shall be followed by the taxpayers which are also included in the last chapter of the book.
Other tax compliances
Other tax compliances include tax compliances for persons leaving Bangladesh, compliances requirements for tax exemption, requirements to obtain approval for provident fund and gratuity fund.
Sometimes, directors of the company may decide to discontinue the operation of business and in those circumstances, there are regulatory requirements in addition to tax law. What shall be followed to discontinue business are also described in detail.
So, you have understood that “Tax Compliance 2021” has included all the tax compliances from starting to end of a business as I stated at the beginning of this article.
Also, an appendix section has been included at the end of the book where all the prescribed forms, statements, returns etc. have been provided so that you could understand about the formats as per Income Tax Rules 1984. And also help you to read the lessons with the appendix of the book.