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Deduction of Tax from Receipts in Respect of International Phone Calls under Section 108 of the Bangladesh Income Tax Act, 2023 |
Deduction of tax from receipts in respect of international phone call under Section 108 | Bangladesh Income Tax Act -2023
As per section-108(ITA-2023),
Deduction of Tax from Receipts Relating to International Phone Calls
1. Tax Deduction by Banks
A bank receiving any amount on account of International Gateway (IGW) Services
for international phone calls shall deduct tax at the rate of 1.5% (one
and one-half percent) of the gross amount received at the time the
amount is credited to the account of the International Gateway (IGW) Services
operator.
2. Tax Deduction by International Gateway (IGW)
Services Operators
An International Gateway (IGW) Services operator that makes any payment or
credits any amount relating to international phone calls to the account of an
Interconnection Exchange (ICX), Access Network Services (ANS), the Bangladesh
Telecommunication Regulatory Commission (BTRC), or any other person under an
agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC),
shall deduct tax at the rate of 7.5% (seven and one-half percent) of
the gross amount paid or credited at the time of such payment or credit.
3. Tax Deduction on Outgoing International Calls
Where any amount is paid or credited in respect of outgoing international phone
calls, the Interconnection Exchange (ICX) service provider or the Access
Network Services (ANS) provider shall deduct tax at the rate of 7.5%
(seven and one-half percent) of the gross amount paid or credited at
the time of such payment or credit.
4. Reduced or Nil Deduction Certificate
Notwithstanding subsections (1), (2), and (3), where the Board issues a written certificate, upon application by a person, stating that the person's income is
exempt from tax or is subject to tax at a rate lower than that specified in
this section, the person responsible for making the payment shall make the
payment—
(a) without deducting tax, where the certificate so provides; or
(b) after deducting tax at the rate specified in the certificate.
This version improves readability, removes repetitive phrasing, and adopts a more consistent legislative drafting style without changing the substantive effect of the provision.
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Frequently Asked Question (FAQ):
1. What is the deduction of tax from receipts in respect of international phone calls under Section 108?
Under Section 108 of the Bangladesh Income Tax Act, 2023, tax is deducted at source from receipts earned from international phone call services at the prescribed rate. The deduction is collected before payment and is treated according to the provisions of the Act.
2. Who is responsible for deducting tax under Section 108?
The person or entity making the payment for international phone call receipts is responsible for deducting tax at source and depositing it with the government in accordance with the Bangladesh Income Tax Act, 2023.
3. What payments are covered by Section 108?
Section 108 applies to receipts arising from international phone call services. Any payment that falls within this category may be subject to tax deduction at source as prescribed by the Income Tax Act, 2023.
4. Why is Section 108 important for taxpayers and telecom operators?
Section 108 helps ensure proper tax collection from international telecommunications transactions. Compliance with the deduction requirements helps taxpayers avoid penalties and supports transparent tax administration in Bangladesh.