Filing an income tax return is mandatory for various categories of individuals and entities. Here is a comprehensive list of those who are required to file income tax returns in Bangladesh:
Individuals Required to File Income Tax Returns
Salaried Individuals:
Any individual whose total annual income exceeds the tax-free threshold and who holds an executive position in a private limited company and withdraws monthly salary BDT. 20,000 he/she has to submit a personal income tax return to NBR.
Self-Employed Individuals and Professionals:
Business owners, freelancers, and professionals (e.g., doctors, lawyers, consultants) with annual income above the tax-free threshold.
Non-Resident Bangladeshis (NRBs):
Individuals earning income in Bangladesh but residing abroad.
High-Income Earners:
Individuals with significant investments in savings instruments, fixed deposits, or other income-generating assets.
Directors:
Individual holding a position as Director | Managing Director | Chairman in a company.
Property Owners:
Individuals earning rental income from property.
Investors:
Individuals earning dividends, capital gains, or other investment income.
Companies and Organizations Required to File Income Tax Returns
Registered Companies:
All registered companies, including private limited companies, public limited companies, and foreign companies operating in Bangladesh.
Partnership Firms:
Firms registered as partnerships and earning income during the fiscal year.
Non-Profit Organizations and NGOs:
Organizations registered as non-profits or NGOs and involved in income-generating activities.
Trusts and Cooperative Societies:
Entities registered as trusts or cooperative societies and earning income.
Specific Thresholds and Criteria
Tax-Free Threshold for Individuals:
The tax-free threshold varies and is determined annually by the National Board of Revenue (NBR). For the fiscal year 2023-2024, the tax-free threshold is BDT 350,000 for general taxpayers.
Higher thresholds are available for women, senior citizens, and persons with disabilities.
Required Filing for Certain Transactions:
Individuals who have engaged in significant financial transactions such as the purchase of property, car, or investments beyond a specified amount.
TIN Requirement:
Any individual or entity with a Taxpayer Identification Number (TIN) is generally required to file an income tax return, regardless of whether they have taxable income.
Special Cases
Retired Individuals:
Retired individuals with pension income exceeding the tax-free threshold.
Parents of Minor Children:
Parents must file returns if their minor children have taxable income.
Exemptions
Low-Income Earners:
Individuals whose total annual income is below the tax-free threshold are generally not required to file a return.
Certain Pensioners:
Some pensioners whose only source of income is their pension, which is below the tax-free threshold are generally not required to file a return.
Conclusion
Filing an income tax return in Bangladesh is mandatory for a broad range of individuals and entities based on their income, financial activities, and registration status. Staying informed about the current tax regulations and thresholds is essential to ensure compliance and avoid penalties. If you are unsure whether you need to file a return, consulting with a tax professional or the NBR can provide clarity.
