46B. Exemption from tax newly established industrial undertakings set-up between the period of July, 2011 to June, 2[2019], etc. in certain cases.-

¹[46B. Exemption from tax of newly established industrial undertakings set up  between  the  period  of  July,  2011  and ²[June, ³[2019],  etc.  in  certain cases.- 

(1)  Subject  to  the  provisions  of  this  Ordinance,  income,  profits  and gains under section 28 from an industrial undertaking (hereinafter referred to as the said undertaking) set-up in Bangladesh between the first day of July, 2011  and  the ⁴[thirtieth  day  of  June, ⁵[2019]  (both  days  inclusive)  shall  be exempted from the tax payable under this Ordinance for the period, and at the rate, specified below:

if the said undertaking is set-up in-
6[(i) Dhaka, Mymensingh and”  Chittagong  divisions,  excluding  Dhaka,   Narayanganj, Gazipur,  Chittagong,  Rangamati,  Bandarban and Khagrachari  districts, for a period of five years beginning with the month of commencement of commercial production of the said undertaking:

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¹ Subs. by F.A. 2011

² Subs for "June 2013" by F. A. 2013
³ Subs. for "2015" by F.A. 2014

⁴ Subs for "thirtieth day of June, 2013" by F. A. 2013
⁵ Subs. for "2015" by F.A. 2014
⁶ Subs. by F.A. 2017

¹[(ii)  Rajshahi,  Khulna,  Sylhet,  Barisal  and  Rangpur  divisions  (excluding City Corporation area)  and Rangamati, Bandarban and Khagrachari districts, for  a  period  of  ten  years  beginning  with  the  month  of  commencement  of commercial production of the said undertaking:

 
Provided that any industry engaged in the production of item as referred to in clause (e) or clause (l) of sub section (2) shall be entitled to exemption from tax under the provision of this section even if it is set up in the districts of Dhaka, Gazipur, Narayanganj or Chittagong.]
 
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¹ Subs .  by F.A. 2014

(2) For the purpose of this section-

"industrial undertaking" means an industry engaged in the production of-

(a)  active  pharmaceuticals  ingredient  industry  and  radio pharmaceuticals industry;

¹[(aa) automobile manufacturing industry]
(b) barrier contraceptive and rubber latex;

(c) basic chemicals or dyes and chemicals;

(d) basic ingredients of electronic industry (e.g. resistance, capacitor, transistor, integrator circuit);

²[(dd)bi-cycle manufacturing industry]

(e) bio-fertilizer;

(f) biotechnology;
(g) boilers;
³[(gg)  brick  made  of  automatic  Hybrid  Hoffmann  Kiln ⁴[or tunnel kiln] technology;]
(h) compressors;

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¹ Ins . by F.A. 2015

² Ins . by F.A. 2015

³ Ins . by F.A. 2014

⁴ Ins . by F.A. 2015

(i) computer hardware;

(j) energy efficient appliances;

(k) insecticide or pesticide;

(l) petro-chemicals;

(m) pharmaceuticals;

(n) processing of locally produced fruits and vegetables;

(o)  radio-active  (diffusion)  application  industry  (e.g.  developing quality  or  decaying  polymer  or  preservation  of  food  or  disinfecting medicinal equipment);

(p) textile machinery;

(q) tissue grafting; ¹[or

[(qq) tyre manufacturing industry;or]
(r)  any  other  category  of  industrial  undertaking  as  the  Government may, by notification in the official Gazette, specify.

(3) Notwithstanding anything contained in sub-section (2), for the purpose of this  section  industrial  undertaking  shall  not  include  expansion  of  such  an existing undertaking.

(4) The exemption under sub-section (1) shall apply to the said undertaking if it fulfils the following conditions, namely:-

(a) that the said undertaking is owned and managed by-

(i) a body corporate established by or under any law for the time being in force with its head office in Bangladesh; or

(ii) a company as defined in  কোম্পানী আইন, 1994 (1994 সনের ১৮ নং  আইনকোম্পানী আইন)  with its registered office in Bangladesh and having a subscribed  and  paid  up  capital  of  not  less  than  two  million taka  on  the  date  of  commencement  of  co mmercial production;

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¹Omitted 'or' and ins. new claus(qq) by F. A. 2015

(b) that thirty percent of the exempted income under sub-  section (1) is  invested  in  the  said  undertaking  or  in  any  new  industrial undertaking during the period of exemption or within one year from the end of the period to which the exemption under that sub -section relates  and  in  addition  to  that,  another  ten  percent  of  the  exempted income  under  sub-section  (1)  is  invested  in  each  year  before  the expiry  of  three  months  from  the  end  of  the  income  year  in  the purchase  of  shares  of  a  company  listed  with  any  stock  exchange, failing  which  the  income  so  exempted  shall,  notwithstanding  the provisions of this Ordinance, be subject to tax in the assessment year
for which the exemption was allowed:

Provided  that  the  quantum  of  investment  referred  to  in  this  clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section;

(c)  that  the  said  undertaking  is  not  formed  by  splitting  up  or  by reconstruction or reconstitution of business already in existence or by transfer to a new business of any machinery or plant used in business which  was  being  carried  on  in  Bangladesh  at  any  time  before  the commencement of the new business;

(d)  that  the  said  undertaking  is  approved,  and  during  the  relevant income year, stands approved by the Board for the purposes of this section;

(e)  that  application  in  the  prescribed  form  for  approval  for  the purposes of this section, as verified in the prescribed manner, is made to  the  Board  within  six  months  from  the  end  of  the  month  of commencement of commercial production;

(f)  that  the  said  undertaking  obtained  a  clearance  certificate  for  the relevant income year from the Directorate of Environment;

(g) that the said undertaking maintains books of accounts on a regular basis and submits return of its income as per provisions laid down in section 75 of this Ordinance.]

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(5) Notwithstanding anything contained in this section, where an undertaking enjoying  exemption  of tax  under this  section  is  engaged  in  any  commercial transaction  with  another  undertaking  or  company  having  one  or  more common sponsor directors, and during  the course of making an assessment of the said undertaking if the Deputy Commissioner of Taxes is satisfied that the said  undertaking  has  purchased  or  sold  goods  at  higher  or  lower  price  in comparison to the market price with intent to reduce the income of  another undertaking  or  company,  the  exemption  of  tax  of  that  undertaking  shall  be deemed  to  have  been  withdrawn  that  assessment  year  in  which such transaction is made.

(6) The Board shall give its decision on an application made under clause (e) of  sub-section  (4)  within  forty  five  days  from  the  date  of  receipt  of  the application  by  the  Board,  failing  which  the  undertaking  shall  be  deemed  to have been approved by the Board for the purposes of this section:

Provided  that  the  Board  shall  not  reject  any  application  made  under  this section unless the applicant is given a reasonable opportunity of being heard.

(7)  The  Board  may,  on  an  application  of  any  person  aggrieved  by  any decision  or  order  passed  under  sub-section  (6),  if  the  application  is  made within  four  months  of  the  receipt  or  such  decision  or  order,  review  the previous decision, order or orders and pass such order in relation thereto as it thinks fit.

(8)  The  income,  profits  and  gains  of  the  undertaking  to  which  this  section applies  shall  be  computed  in  the  same  manner  as  is  applicable  to  income chargeable under the head "Income from business or profession".

Provided  that  in  respect  of  depreciation,  only  the  allowances  for  normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

(9)  The  income,  profits  and  gains  of  the  undertaking  to  which  this  section applies shall be computed separately from other income, profits and gains of the  assessee,  if  any,  and  where  the  assessee  sustains  a  loss  from  such undertaking it shall be carried forward and set off against the profits and gains of the said undertaking for the next year and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the following year  and  so  on,  but  no  loss  shall  be  carried  forward  beyond  the  period specified by the Board in the order issued under sub-section (6) or (7).

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(10) Unless otherwise specified by the Government, nothing contained in this section shall be so construed as to exempt the following from tax chargeable under this section:-

(a) any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out of the profits and gains;
(b) any income of the said undertaking classifiable as "Capital gains"chargeable under the provisions of section 31;
(c)  any  income  of  the  said  undertaking  resulting  from  disallowance made under section 30.

(11) Where any exemption is allowed under this section and in the course of making assessment, the Deputy Commissioner of Taxes is satisfied that any one  or  more  of  the  conditions  specified in  this  section  are  not fulfilled,  the exemption  shall  stand  withdrawn  for  the  relevant  assessment  year  and  the Deputy Commissioner of Taxes shall determine the tax payable for such year.

¹[or any individual not being a Bangladeshi citizen is employed or allowed to work without prior approval of the Board of Investment or any competent authority of the Government, as the case may be, for this purpose]

(12)  Any  such  undertaking  approved  under  this  section  may,  not  later  than one  year  from  the  date  of  approval,  apply  in  writing  to  the  Board  for  the cancellation of such approval, and the Board may pass such order or orders thereon as it may deem fit.

(13) Notwithstanding anything contained in this section, the Board may, in the public  interest,  cancel  or  suspend  fully  or  partially  any  exemption  allowed under this section.

(14)  The  Board  may  make  rules  regulating  the  procedure  for  the  grant  of approval  under  sub-section  (6),  review  under  sub-section  (7),  furnish information  regarding  payment  of  other  taxes  by  the  said  undertaking,  and take such other measures connected therewith or incidental to the operation of this section as it may deem fit.

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¹Ins.clause (qq) by F.A. 2015

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