Legal Framework
Bangladesh's legal framework for income tax is primarily governed by the Income Tax Ordinance, of 1984. This ordinance, along with its amendments and related rules, outlines the legal structure for income tax administration, including assessment, collection, and enforcement. Here’s a detailed look at the key elements of this framework:
 |
| Supreme Equality |
National Board of Revenue (NBR)
Double Taxation Agreements (DTAs)
Income Tax Ordinance, 1984
Purpose:
The Income Tax Ordinance, of 1984 establishes the basis for taxing income and details the responsibilities and procedures for taxpayers and the tax administration.
Scope:
The ordinance covers a range of income sources, including salary, business profits, property income, capital gains, and other forms of income. It also specifies rules for tax deductions, exemptions, and credits.
National Board of Revenue (NBR)
Role:
The NBR is the central authority responsible for administering and enforcing tax laws in Bangladesh. It operates under the Ministry of Finance and oversees the implementation of tax policies and the collection of taxes.
Functions:
The NBR handles tax assessments, audits, collections, and enforcement. It also provides guidelines, interprets tax laws, and updates tax regulations as needed.
Tax Laws and Amendments
Amendments:
The Income Tax Ordinance, of 1984 has undergone various amendments over the years. These amendments are introduced through the annual Finance Act, which updates tax rates, introduces new provisions, and makes necessary adjustments to reflect economic conditions and policy changes.
Finance Act:
Passed annually, the Finance Act modifies the existing tax laws, including changes to tax rates, introduction of new tax incentives, and adjustments to tax exemptions.
Tax Rules and Notifications
Income Tax Rules:
Detailed rules that complement the Income Tax Ordinance, 1984 provide procedural guidance on various aspects of tax administration, including filing requirements, assessment procedures, and appeal processes.
Notifications and Circulars:
Issued by the NBR, these documents provide specific instructions and clarifications on tax matters, helping to interpret and apply the laws effectively.
Judicial Oversight
Tax Tribunals:
Disputes between taxpayers and tax authorities can be resolved through tax tribunals, which review and adjudicate on tax-related matters.
Higher Courts:
Decisions from tax tribunals can be appealed to higher courts, including the High Court Division and the Appellate Division of the Supreme Court, which provides judicial oversight and interpretations of tax laws.
International Agreements
Double Taxation Agreements (DTAs):
Bangladesh has entered into various DTAs with other countries to avoid double income taxation and promote international trade and investment. These agreements influence how income earned across borders is taxed and provide mechanisms for resolving tax disputes between countries.
This legal framework ensures a structured approach to income tax in Bangladesh, balancing the needs of revenue collection with the rights and obligations of taxpayers.
_ _ _