Deduction from Amount Paid for Intangible Property under Section 91 of the Bangladesh Income Tax Act, 2023.

Deduction from amount paid for intangible property under Section 91 | Bangladesh Income Tax Act -2023 

As per section-91(ITA-2023),

 

Deduction from amount paid for intangible property.—The person responsible for making payment in respect of royalty, franchise or license, trademark, patent, copyright, industrial design, plant variety, geographical indication product or any other property related to intellectual property or immaterial or abstract or intangible thing shall, at the time of such payment or credit, deduct tax at the rate specified in the following table, namely:—

 

Table

Description of payment	Rate of tax Deduction
(1)	(2)
Where base amount does not exceed 25(twenty five) lakh Taka	10% (ten percent)
Where base amount exceeds 25 (twenty five) lakh Taka	12% (twelve Percent) .

You may learn more-

Computation of special income from rent under Section 39 |Bangladesh Income Tax Act -2023-https://shorturl.at/QOpsu

Charge of tax on stock dividend under Section 23 |Bangladesh Income Tax Act -2023-https://shorturl.at/o5GtY

Frequently Asked Question (FAQ):

1. What is the deduction for amount paid for intangible property under Section 91?

Section 91 of the Bangladesh Income Tax Act 2023 allows eligible taxpayers to claim deductions for payments made for qualifying intangible property, subject to the conditions and limitations prescribed in the Act.

2. What qualifies as intangible property under the Bangladesh Income Tax Act 2023?

Intangible property generally includes patents, copyrights, trademarks, licenses, goodwill, software rights, franchises, and other legally recognized intellectual property used for business purposes.

3. Can businesses claim deductions for royalty payments under Section 91?

Yes. Businesses may claim deductions for eligible royalty or licensing payments related to intangible property, provided the expenses are wholly and exclusively incurred for business purposes and comply with Section 91.

4. What documents are required to claim deductions for intangible property expenses?

Taxpayers should maintain agreements, invoices, payment records, tax deduction documents (if applicable), and other supporting evidence to substantiate deductions claimed under Section 91.