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Corporate Practice bd |
Allowable General deduction or admissible expense against Business income
Under Section 49 of the Income Tax Act, 2023 in Bangladesh, various allowable general deductions or admissible expenses are outlined that businesses can deduct against their income to compute taxable business profits. The key expenses that qualify as allowable deductions include:
1.Raw material, stores, Purchase of goods for business or use in business& inventory write-off
2.Duties & taxes, Municipal taxes, local taxes, land development taxes, ground rent & govt fee paid for Business purposes which is not paid with reference to ITA-2023 or gift Tax ACT-1990.
3.Rents, development & maintenance expense payable against the land and Yard used for business purposes.
4.Any expense, welfare expense, or wages paid which is considered as salary expense under ITA-2023.
5.Repairs & maintenance expense
6.Insurance premium
7.Power & fuel expense
8.Transportation of goods, Clearing & forwarding charges
9.Sales commission, brokerage, discount & warranty expense
10.Advertisement & promotional expense
11.Training expense for staff
12.Expense for conference, Hotel, & accommodation of sales representative
13.Transportation & Traveling expense
14.Expense for internet, postage & telecommunication service
15.Expense for varies professional service. Like legal fees. Audit fees etc
16.Entertainment expense
17.Realized loss due to the exchange of foreign currencies subject to the Provision for the third schedule
18.Entry & others fees paid to any club or commercial committees
19.Expense related to foreign tour participated as a member of trade delegation sponsored by the Govt.
20.Royalty, technical service fees & Head office expense
21.Fund paid to worker’s participation fund, welfare fund, workers welfare foundation fund established under section234 of Bangladesh worker’s welfare foundation Act-2006 which shouldn’t more than 5% of disclosed net business profit.
22.Any others expense incurred solely and completely for business