Submitting proof of tax-return submission may be mandatory for availing different services in public and private entities from the upcoming fiscal year, as a preventive measure against TIN tricks.
Currently, these services from public and private entities could be taken on submission of Taxpayer Identification Number (TIN). But adjoining tax-return slip with the TIN of taxpayers is going to be mandatory from FY 2022-23, sources say.
The government may incorporate the new provision into the Finance Bill 2022 in effort to increase the number of tax returns-and hence augment tax receipts, they add.
Sources concerned said the measures would also encourage TIN holders to submit tax returns.
Currently, only 2.4 million taxpayers submit tax returns out of 7.5 million holding TIN.
"Although submission of tax returns by all TIN holders is mandatory, taxpayers are not complying with the law for a lack of enforcement of the law," says one revenue official. The new fiscal measure would help in increase the number of tax returns next year, the official hopes.
The government may also make tax-return submission mandatory for the non-resident companies not having permanent establishments in Bangladesh.
In a bid to net income from the global technological giants, the tax authorities are likely to incorporate a provision into the new Finance Bill, destined to land in parliament in few days along with the next fiscal budget.
Under the provision, Google, Facebook, Netflix, Amazon and other global companies have to submit income-tax returns to the National Board of Revenue (NBR) from next year. Officials say individuals or companies having any type of online income through digital platforms have to submit tax returns from the upcoming fiscal year.
In the budget, the government may also cut back on corporate tax by 2.5 per cent for both non-listed and publicly listed companies. However, publicly listed companies would be entitled to the benefit under a condition if they offload at least 10 per cent of their shares to the public.
The measure is deemed to have been planned as many of the listed companies have yet to offload 10-percent shares.
The footholds of the tech giants in Bangladesh have prompted the tax authorities to rethink the direct-tax measures so that the government can have details of their annual earnings in the country.
The companies are earning hefty profits worldwide. Google's net income grew 32 per cent to $75 billion in the final quarter of 2021, ending the year with a total of $76 billion in profit.
Earlier, the High Court in the full text of a verdict had observed that the global companies are bound to submit their income-tax returns to the NBR according to the Income Tax Ordinance 1984.
