Taxation of International Executives

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    Our Consultation on Taxation of International Executives

    The general rule in Bangladesh for taxation of international executives is that the government fixes a tax on a person’s income for the previous year and the next year’s tax has to be paid the following year.
    International Executives in Bangladesh

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    The National Board of Revenue (NBR) usually issues tax returns between February and March of the following year. If you do not find an extension, you must file with NBR (electronically).
    Unless you choose an interest-free monthly deductible installment, you must pay the tax within one month of receiving your valuation notice.

    Learn More About Residence Rules With Network BD

    In Bangladesh, qualitative and quantitative testing determines whether you are a resident.
    According to the qualitative test, citizens are usually residents, but permanent residents must explain to the NBR that they have the status of permanent residents in Bangladesh.
    If you have lived, worked or been physically present in Bangladesh for at least 183 years of the tax year, you are a tax resident for the assessment year according to the quantitative test. But this does not apply to the directors of the company.

    3 Years Administrative Discount On Taxation Of International Executives

    According to the three-year administrative exemption, if you have less than 183 days in the first or third year, even if you work or stay in Bangladesh without interruption for three years, you are a tax resident.

    Two-year Administrative Waiver Related Services With Network BD

    Under the two-year administrative exemption, if you work or live in Bangladesh for less than 183 days, including government leave and weekly leave, you are a tax resident for two years. If you are a foreign employee who came to Bangladesh on or after the first day of 2007, you will get this discount unless you are a professional, public entertainer or company director.

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    Starting from the assessment year 2006, if a person’s interest income comes from money deposited in a licensed finance company or authorized bank, it is tax free. This also applies to interest from assessment securities, which began in 2004.
    But if the interest comes from Bangladesh partnership or from profession, business or trade then you must pay tax.

    Dividend Income in Corporate Tax System

    As of January 1, 200, shareholders do not pay tax at the time of receipt of dividends paid by a residential company in Bangladesh, as these dividends fall under a one-tier corporate tax system.

    Rental Income Service With Network BD

    If you collect rent for a Bangladeshi property, you will have to pay tax on it. The money you receive for furniture and accessories, as well as any service charges to the tenant, you must declare the total rental income of each property. You can claim expenses during the rental period, such as repairs and maintenance, fire insurance, mortgage interest, property taxes – you get the idea.

    FAQ for Taxation of International Executives

    How can I reduce my taxable income?

     So be sure to claim all the tax exemptions and benefits applicable to you. Section 80C of the Income Tax Act can reduce your total income by BDT 3 lakh.

    What is international tax management?

     The International Tax Plan is defined as a tax-driven active system of its subjects to reduce the tax consequences of an individual.

    How does the current system of international taxation work?

    All countries have tax revenues earned by multinational corporations within their borders. Bangladesh also taxes the foreign-source income of a Bangladesh-based multinational company when it is returned to Bangladeshi parents, including the foreign income tax credit paid to them.

    What does an international tax accountant do?

    International tax managers are employed by multinational corporations and public accounting firms to oversee and validate global tax information. They are usually responsible for ensuring that the company complies with the tax regulations enforced by the international community.

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