Resources
Guide to Setup Bangladesh Business
Human Resource Immigration
Industry Guide
Entrepreneurship
Miscellaneous Topics
Bangladesh Industry Digital Plan
Corporate Compliance Requirement
Finances and Grants
Bangladesh Taxation
A Leading Tax Saving For Setup Company In Bangladesh & Asia
Tax Saving For Setup Company: All sole proprietorships and partnerships in Bangladesh are taxed under the Income Tax Act based on the personal income tax rates of their owners. Owners or private partners will be subject to a tax under the Income Tax Act based on their share of profits from the trade.
A private company is legally constituted with limited liability or legal protection for its shareholders but it imposes restrictions on its ownership. An artificial person created by company law. It is clothed by many rights, obligations, powers and duties prescribed by law.
Among the many obligations, paying taxes to a private company is one of the main obligations of a company. It is true that we cannot and will not avoid paying taxes, but yes some tax planning steps can be taken to get some additional financial benefits or tax saving .
Best Results With The Tax Saving In Private company
A director is a person who oversees the performance of the company and manages a special part of the company. The easiest way of tax saving is to pay their managers.
As the founder of the company, instead of dividing profits as dividends, you can divide profits as salary. Salary is an approved expense of a private company.
Learn More About Seating Fee To The Director With Us
A company may pay a seating fee to a director to attend a meeting of the board or its committee. The BOD which is not more than 1 lakh per meeting of the Board or its Committee may decide by its BOD.
This can be claimed as an “expense” in the hands of the company and is waived in the hands of the individual under the prescribed limits. Any fee or commission in any name will be deducted at the rate of 10%
Get Consultation On Devaluation OF Assets
When an asset is purchased it will be classified as a capital asset on the company’s balance sheet.
Thus the purchased item will appear next to the asset of the balance sheet and not in the profit and loss statement.
If the purchased assets are expected to generate revenue for the company for a long period of time i.e. complete devaluation of the assets for a period of 180 days or more will be calculated.
This will eventually give tax benefits year after year.
Stay Stress-Free With Our Rental Costs Service
If the place shown as the registered address of the company is in the name of the director or in the name of a relative of the director, then it can easily be shown as rental expenses.
All you have to do is enter into a lease agreement in the owner’s name, initiate a rent transfer and book the rental expenses in the company’s books.
Most Effective Advisory On Meeting costs
Meeting clients for dinner, a theater show or a sports event can cut such costs.
Also for business purposes when you socialize and go to many meetings and several places.
You can book all such expenses properly and reduce your taxes.
The Cost of The Director's Car
Commonly used in business for travel and meeting management.
And the fuel use and maintenance of such vehicles can also be booked as expenses in the company books because the same expenses are exclusive to the business.
The above costs can do tax saving for companies up to 22% to 30% . However, this requires proper documentation. You can get the most out of it if you plan properly.
FAQ For Tax Saving For Setup Company
How can a company save tax?
The easiest way of tax saving is to pay their managers. As the founder of the company, you can divide the profit as dividends and not as dividends. Salary is the approved cost of a private limited company. So for example if a company makes money.
Can I Start a Business and Save Taxes?
If you have linked your PAN with the company, you can claim a tax deduction of up to Rs. 3,00,000 per annum under Section 80C of the Income Tax Act.
How do I make my company tax free?
Here are 5 ways for small business owners to reduce their taxable income:
1. Assign a family member.
2. Start a retirement plan.
3. Save money for health care needs.
4 Change the structure of your business.
5. Cut travel costs.
How can I reduce my taxable income?
How to reduce taxable income or tax saving :
1. Contribute significantly to retirement savings plans.
2. Participate in employer-sponsored savings accounts for child care and healthcare.
3. Focus on tax credits such as child tax credit and retirement savings contribution credit.