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56. Deduction from income of non-residents.-
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56. Deduction from income of non-residents.-
1[(1) Subject to the provisions of sub-section (2), the specified person or any other person responsible for making payment to a non-resident of any amount which constitutes the income of such non-resident chargeable to tax under this Ordinance shall, unless such person is himself liable to pay tax thereon as agent, at the time of making such payment, deduct tax on the amount so payable at the rate, specified below:
|
SL.No |
Description of services or payments |
Rate of deduction of tax |
|
1 |
Advisory or consultancy service |
20% |
|
2 |
Pre-shipment inspection service |
20% |
|
3 |
Professional service, technical services, technical know-how or technical assistance |
20% |
|
4 |
Architecture, interior design or landscape design, fashion design or process design |
20% |
|
5 |
Certification, rating etc. |
20% |
|
6 |
Charge or rent for satellite, airtime or frequency, rent for channel broadcast |
20% |
|
7 |
Legal service |
20% |
|
8 |
Management service including even management |
20% |
|
9 |
Commission |
20% |
|
10 |
Royalty, license fee or payments related to intangibles |
20% |
|
11 |
Interest |
20% |
|
12 |
Advertisement broadcasting |
20% |
|
13 |
Advertisement making 2[or Digital marketing] |
15% |
|
14 |
Air transport or water transport |
7.5% |
|
15 |
Contractor or sub-contractor of manufacturing, process or conversion |
7.5% |
|
16 |
Supplier |
7.5% |
|
17 |
Capital gain |
15% |
|
18 |
Insurance premium |
10% |
|
19 |
Rental of machinery, equipment etc. |
15% |
|
20 |
3[Dividend- |
20% |
|
21 |
Artist, singer or player |
30% |
|
22 |
Salary or remuneration |
30% |
|
23 |
Exploration or drilling in petroleum operations |
5.25% |
|
24 |
Survey for Coal , oil or gas exploration |
5.25% |
|
24A |
Fees, etc. of surveyors of general insurance company |
20% |
|
25 |
Any service for making connectivity between oil or gas field and its export point |
5.25% |
|
26 |
Any payments against any services not mentioned above |
20% |
|
27 |
Any other payments |
30% |
[Provided that when any capital gain arises from the transfer of any share of a company, the person or the authority, as the case may be, responsible for effecting the transfer of shares shall not give any effect in respect of such transfer if tax on such capital gain has not been paid.]
(2) Where in respect of any payment under this section, the Board, on an application made in this behalf, is satisfied that due to tax treaty or any other reason the non-resident is not be liable to pay any tax in Bangladesh, or is liable to pay any tax at a reduced rate in Bangladesh, the Board may issue a certificate [Within thirty days from the date of receipt of such application accompanied by all the documents as required by the board] to the effect that the payment referred to in sub-section (1) shall be made without any deduction at the reduce rate as mentioned in the certificate.
(2A) Tax deducted under this section shall be deemed to be the minimum tax liability of the payee in respect of the income for which the deduction is made, and shall not be subject of refund or set off or an adjustment against a demand.
4[(3) For the purpose of this section—
(i) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52 of this Ordinance; and
(ii) “payment” includes a transfer, a credit, an adjustment of payment or an order or instruction of making payment.”।
.................................................................................
1 Subs. by F. A. 2016
2 Subs. by F. A. 2017
3 Subs by F. A 2020
4 Subs. sub-section (3) by F. A. 2020
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