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We Provide Best Taxation on Foreign-Sourced Income Services
With the trend of globalization, it is not surprising that the income of many tax-resident companies in Bangladesh comes from abroad. Foreign income received from abroad will be taxable in Bangladesh when it is sent and received in Bangladesh, which may result in double taxation – once abroad, and the second time when foreign income is sent to Bangladesh.
Determining the area of the source of income can be complex and controversial. There is no universal rule that can be applied in every situation to determine whether it is Bangladeshi-source or foreign-source. It depends on the nature of the profit and the transaction that gives rise to such profit. As a guideline, the following points can be used to determine the source of income:
3. Determine if contracts for purchase and sale are executed (e.g. negotiated, terminated and executed) for the profit earned from the trade of goods and products.
4. For a commission-earning business, determine where the commission agent’s activities take place. If such activities are carried out in Bangladesh, then the income will be considered as the source of Bangladesh.
2. Used to repay any debt in the case of business or business conducted in Bangladesh; Or
3. Used to purchase any movable property brought to Bangladesh.
Qualifying 4 Conditions for Tax Exemption
2. Jurisdiction from which income is derived;
3. Foreign jurisdiction title tax rate; And
4. Confirmation that the foreign tax was paid in the jurisdiction in which the income was paid. This is to meet the “taxable” condition.