Services
Tax & VAT Compliance
Tax is the single biggest compliance burden and concern for businesses globally. Regulators are constantly increasing tax rates, scrutiny and legislation to ensure higher state earnings. Consequently businesses must ensure complete/absolute compliance to local regulations to avoid such reprimand.
Our tax experts have extensive local work experience in managing both direct and indirect taxation in Bangladesh. We help both global and local companies manage their tax compliance obligations locally on a day to day basis. We provide complete outsourced tax compliance services which ensure filings are done on time, correct rates are applied, deadlines are met and reporting is done to client keeping the entire process transparent.
We provide
Tax Registration – we assist our clients in obtaining Income Tax e-TIN Certificates and VAT Registration in Bangladesh from the National Board of Revenue (NBR).
Tax Deduction Compliance – we provide daily support to clients to ensure each transaction (customer invoices, vendor invoices, payments, and receipts) is compliant for tax and VAT in Bangladesh. Part of this service involves pre-execution vetting to ensure all contracts are tax compliant.
Withholding tax payment – we prepare necessary forms (challans) for payment of withholding tax to Government Exchequer.
Returns Preparation & Filing – we assist clients by preparing and submitting the following returns to the NBR :
- Monthly VAT Return
- Monthly Withholding Tax Return
- Half yearly Return under Section 75A
- Annual Salary Return under Section 108
- Annual Employee Tax Filing Return under Section 108A
- Annual Interest Return under Section 109
- Annual Dividend Return under Section 110
- Any other return which may be relevant
Corporate Income Tax Return – we assist clients in preparing their annual corporate income tax returns and filing of the same to the NBR. This includes:
- Preparation of tax computation based on audited financial statements and computing total tax liability.
- Collection of all information and documents required for tax filing.
- Preparation of the tax return and submission to tax authorities along with all documents.
- Assistance with change in accounting year.
- Assistance with obtaining ITES (IT enabled services) exemption in Bangladesh.
A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.
Value-added taxation is based on taxpayers’ consumption rather than their income. In contrast to a progressive income tax, which levies greater taxes on higher-level earners, VAT applies equally to every purchase.
Key Elements
- A value-added tax, or VAT, is added to a product at every point on the supply chain where value is added.
- Advocates of VATs claim that they raise government revenues without punishing success or wealth, while critics say that VATs place an increased economic strain on lower-income taxpayers and bureaucratic burdens on businesses.
- Although many industrialized countries have value-added taxation, the U.S. is not one of them.
How a Value-Added Tax Works
A VAT is levied on the gross margin at each point in the manufacturing-distribution-sales process of an item. The tax is assessed and collected at each stage, in contrast to a sales tax, which is only assessed and paid by the consumer at the very end of the supply chain.
