Guide to Setup Bangladesh Business
Human Resource Immigration
Bangladesh Industry Digital Plan
Corporate Compliance Requirement
Finances and Grants
A Leading Capital Gains Tax In Asia & Bangladesh
Learn About Bangladesh Capital Gains Tax With Network BD
Any profit or gain arising from the transfer of a capital asset shall be accounted to be the income of the year in which the transfer took place, and tax should be payable by an assessee under the head capital gains. Compared to other developing countries, Bangladesh has the strictest tax regime that operates with higher percentage and more complex taxation systems. Moreover, capital gains tax has been introduced in Bangladesh in the year of 2010, leaving the stakeholders, local and overseas portfolio investors about the rate of capital gain tax.
Capital Gains TAx (CGT) is applied differently on different promoters and primary shares. The Finance Act of 2010 has imposed CGT of 3% from issue of primary share at a premium price, which has been omitted in the Finance Act 2013, imposing collection of CGT 55 on the difference between transfer value and cost of acquisition of the securities or mutual funds units making the stock exchanger responsible for the collection.
The rate of advanced collection o0f CGT is fixed at 10% for the sponsor shareholders and 5% for sponsor shareholders of banks, financial institutes, insurance and other financial companies.
The rate of CGT perplexes the interpreters and creates some confusion regarding this. NetworkBD can help their clients in understanding CGT and determining the tax rate for their clients.
No More Confusion About Capital Gains Tax With Us
According to National Revenue Board, CGT will be applicable based on different criteria, as such:
- The rate of advanced collection of CGT is fixed at 10% for the sponsor shareholders, while the rate will be 5% for the sponsor shareholders from financial institutes.
- If a company buys a property and sells it after sometime for profit, the asset will be noted as a capital, and will be subjected to tax
- For overseas investors and non-resident placement holders the established tax rate is 15% as per the section 56 of income tax ordinance 1984
- Disposals of government securities are not subject to capital gains tax, neither are the amounts received for termination of contracts and goodwill.
Our Assistance To Determine The Nature Of Income
2. Purpose of buying and selling property;
3. Financial means hold property for the long term; And
4. Holding Period Key (Holding period is calculated from the date of purchase of capital assets to the date of sale)