 |
| Corporate Accounting Treatment |
How company income tax return process in Bangladesh?
The company income tax return process in Bangladesh involves several steps, governed by the Income Tax Ordinance, 1984, and administered by the National Board of Revenue (NBR). Here’s a detailed breakdown of the process:
1. Registration and Tax Identification Number (TIN):
Obtain TIN: Every company must register with the NBR and obtain a Tax Identification Number (TIN). This is essential for all tax-related activities.
Documents Required: Application form, company registration certificate, and relevant identification documents.
2. Financial Year End:
Determine Financial Year: Companies typically follow a financial year ending on June 30. However, some may choose a different fiscal year.
Prepare Financial Statements: At the end of the financial year, companies must prepare financial statements, including the balance sheet and profit and loss account.
3. Audit Requirement:
Audit: Depending on the size and nature of the company, a statutory audit may be required. All public companies and some private companies must have their financial statements audited by a registered auditor.
4. Tax Computation:
Calculate Taxable Income: Companies need to compute their taxable income by adjusting their profit or loss with allowable deductions and disallowable expenses.
Tax Rates: Apply the relevant corporate tax rates, which can vary based on the type of company (e.g., publicly traded vs. non-public companies).
5.Filing the Return:
Return Form: Companies must fill out the prescribed tax return form (usually Form-2 for corporate entities).
Submission Timeline: The tax return must be submitted within a specified deadline, usually within 6 months after the end of the financial year (by December 31 for June 30 year-end).
Online Submission: Companies can submit their returns online through the NBR’s website.
6. Supporting Documents:
Attach Required Documents: Along with the return, companies need to attach supporting documents such as audited financial statements, tax computation worksheets, and any other relevant documentation.
7. Payment of Tax:
Advance Tax Payments: Companies are required to pay advance tax throughout the year, based on estimated income.
Final Tax Payment: After filing the return, if there’s any outstanding tax, it must be paid promptly to avoid penalties.
8. Assessment by NBR:
Tax Assessment: After submission, the NBR will assess the return. They may conduct a review or audit.
Final Notice: If there are discrepancies, the NBR will issue a notice for additional tax or refund based on their assessment.
09.Appeals and Disputes:
Dispute Resolution: If a company disagrees with the NBR’s assessment, it can file an appeal. The appeal must be submitted to the appropriate authority within a specified time frame.
10. Record Keeping:
Maintain Records: Companies must keep proper records of their financial transactions, tax returns, and correspondence with the NBR for a minimum of 6 years.
11. Compliance and Penalties:
Compliance: Adhering to all tax laws is crucial. Non-compliance can lead to penalties, interest on unpaid tax, and legal repercussions.
In Finally:
The company income tax return process in Bangladesh requires careful planning and compliance with regulatory requirements. Companies should stay updated with any changes in tax laws and consult tax professionals if needed to ensure accurate reporting and timely submission.