Personal Income Tax Planning in Bangladesh

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    Most Effective Personal Income Tax Planning in Bangladesh

    Start with estimating your taxable income for the whole year with our Personal Tax Planning on income, find out your effective tax rate, and plan your annual tax bill. The purpose is to learn how to save your personal income tax every year.
    Start with estimating your taxable income for the whole year with our Personal Tax Planning for income, find out your effective tax rate, and plan your annual tax bill. The purpose is to learn how to save your personal income tax every year.
    Personal Income Tax Planning in Bangladesh

    Offering 3 Perfect Personal Income Tax Planning For Directors & Shareholders

    As a director and shareholder of a company, you may consider withdrawing profits from the company through the director’s salary, director’s fees or dividends while looking at the personal tax planning on income.

    1. Director's salary

    Remember that if you are a citizen of Bangladesh or a permanent resident of Bangladesh, you will have to contribute CPF on a monthly basis to your salary. The employee portion of the CPF contribution is approved as relief on your personal tax return.

    2. Director's fees

    The director’s fee is assessed in the year in which a director is entitled to receive the fee. Regardless of when the payment is received by the director and when the payment is made. Generally, there are 3 types of operator fees

    1.Director fees received under the employment contract, he can identify the fees in the same year.

    2. For authorized director fees in arrears, the director shall usually attend the annual general meeting or extraordinary general meeting of the company entitled to receive the director’s fee on the day of the vote and approval.

    3. For advance authorized manager fees, the operator is not entitled to receive operator fees on AGM / EGM date. Instead, he is entitled to receive a manager’s fee when he provides his services for the financial year ended December 31.

    3. Divided

    Dividends received by the shareholders of a Bangladeshi company are tax-free under one-tier corporate tax system. This means that shareholders will not be taxed on such dividend income. Simply put, dividends are distributed from the company’s profits after taxes.

    You may want to consider other factors that may affect how much you pay or manager fees. For example,

    1. Are you getting a loan in the future? If you declare a higher personal income, you can get a higher Quantum loan.2. Are you applying for a credit card? You can get higher credit limits if you declare higher personal income.

    Maximize Tax Reduction With Our World-Class Tax Planning

    Tax deductions reduce your personal tax planning. Your total deductions are deducted from your taxable income to determine your total taxable income for the year. Make full use of available tax reliefs to save you more taxes.

    Reduce Employment Costs By Half

    Employment Expenditure is the cost that is ‘fully and exclusively’ spent on generating your employment income in Bangladesh. These expenses may be deducted from your employment income as long as they are approved expenses.
    Expenses may be allowed if the following conditions are met:
    1.There have been costs incurred while performing your government duties;
    2.Your employer did not refund the cost; And
    3.Expenditure was not capital or personal in nature.

    Keep documents and records of tax payments

    You need to keep all supporting documents and records in your tax returns for 5 years. For less inked receipts or bills, make a photocopy. Alternatively, scan and keep an electronic copy for easy recovery later.
    The tax authority may request for supporting documents in the case of review of consent. Estimates and inappropriate records are not acceptable.

    Seek Professional Help For The Best Results

    Consider hiring an effective accountant and tax advisor, such as, to help you plan and prepare effectively. can help you legally increase discounts and relief for your condition, which can lead to significant savings in the long run.

    FAQ For Personal Income Tax Planning in Bangladesh

    When is the tax arrears? How will NetworkBD help you with this?

    Each year, you must file your federal income tax return for the previous calendar year within Tax Day. NetworkBD will notify you and, in general, the filing deadline is June 30th or closer, although if the 15th falls on a weekly holiday or holiday, the deadline may be bumped up to the next business day.

    What is included in personal income tax?

    Personal income tax (or personal income tax) is a tax that is levied on wages, salaries, dividends, interest and other income by an individual throughout the year. Taxes are usually levied by the state in which the income is made.

    When will I get my refund?

    According to the IRS, most refunds are issued within 21 days for taxpayers who have e-filed and who are submitting their returns directly. If you submit a paper return, the refund takes up to six weeks. Certain credit or deduction claims may delay your return. You can check your return status on the IRS NetworkBD website.

    Is a salary before or after taxes?

    When people talk about income and salary and tell you how much money they make, the numbers they refer to are usually pre-tax numbers. This means that they are talking about their income before taking any tax. The point is, when you get paid, your pay is paid post-tax.

    A Must Have Personal Income Tax Planning Package