Summary of Withholding Income Tax as per Finance Act, 2021

Several transactions attract withholding income tax. Details of the same are described below:
Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
Salaries Section 50 Average rate Employer/who are responsible At the time of making Respective Deputy
Income Rate for making payment. payment. Commissioner of
First taka 3.00,000 Nil Taxes of the
In case of Third gender ,Women and 65 & Company
above aged taxpayers- Taka 3,50,000
Retarded taxpayers- Taka 4,50,000
Liberation war wounded gazeted freedom
fighters-Taka 4,75,000
Tax exemption limit for Parents of disabled
Individuals shall be Taka.50,000 more in
respective cases. (but any one of the parents
1 shall get the benefits)
Next taka 100,000 5%
Next taka 300,000 10%
Next taka 400,000 15%
Next taka 500,000 20%
On balance amount 25%
Any income of an individual being a non-resident 30%
foreigner
But minimum tax taka:
a. Tk. 5,000 for Dhaka North , South & Chittagong City corp.
b. Tk. 4,000 other city corp.
c. Tk. 3,000 other than city corp.
.

Discount on the real value of Section Maximum rate on the amount so payable or the rate applicable Person responsible for making At the time of making The Commissioner
2
Bangladesh Bank bills. 50A to such amount, whichever is higher payment payment. of Taxes, LTU
Deduction of tax from payment of Section 50B Same as salary (Sl.-1) Person responsible for making At the time of making The Deputy
3 remuneration to Members of payment. payment. Commissioner of Taxes
Parliament (Respective Circle)
Interest on securities Section 51 5% Person responsible for issuing At the time of making The Commissioner of
security. payment Taxes, LTU
4

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 1 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
Payment to contractors and sub- Section 52 Payment is to made by a specified person to a resident on (i) the Government, or any At the time of making Respective Deputy
contractors and rule 16 account of :- authority, corporation or payment. Commissioner of
a) in case of a payment made against the execution of a body of the Government, Taxes of the
contract other than service rate of TDS including its units, the (Payment includes a Company
b) supply of goods; activities of which are transfer ,a credit or
c) manufacture, process or conversion. authorized by any Act, adjustment of
d) printing, packaging or binding. Ordinance, Order or payment or an order
instrument having the or instruction of
Slab Rate
force of law in making payment )
Up to Tk.50,00,000 3%
Bangladesh;
From Tk. 50,00,001 to Tk.2,00,00,000 5%
More than Tk. 2,00,00,000 7% (ii) a project, programme or
activity where the
e) Rate for following classes of persons Government has any
Sl. Slab Rate financial or operational
1 In case of oil supplied by oil marketing 0.6% involvement;
Companies (iii) a joint venture or a
2 In case of oil supplied by dealer or agent 1% consortium;
(excluding petrol pump station) of oil (iv) a company as defined in
5 marketing companies, on any amount clause (20) of section 2 of
3 In case of supply of oil by any company 3% this Ordinance;
engaged in oil refinery, on any amount (v) a co-operative bank;
4 In case of company engaged in gas 3% (vi) a co-operative society;
transmission, on any amount (vii) a financial institution;
5 In case of company engaged in gas 3%
(viii) a Non-Government
distribution, on any amount
Organisation registered
6 In case of industrial undertaking engaged in 2%
with the NGO Affairs
producing cement, iron or iron products
Bureau or a Micro Credit
except MS Billets
7 In case of industrial undertaking engaged in 0.5% Organisation having
production of MS Billets licence with Micro Credit
8 In case of locally produced MS Scrap 0.5% Regulatory Authority;
(ix) a school, a college, an
9 In case of supply of rice, wheat, potato,
institute or a university;
onion, garlic, peas, chickpeas, lentils,
ginger, turmeric, dried chillies, pulses, (x) a hospital, a clinic or a
maize, coarse flour, flour, salt, edible oil, diagnostic center;
sugar, black pepper, cinnamon, cardamom, (xi) a trust or a fund;
clove, date, cassia leaf, jute, cotton, yarn (xii) a firm;
Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 2 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
and all kinds of fruits” (xiia) an association of persons
(xiii) a public-private partnership;
➢ Rate shall be 50% higher if payee have no 12 (xiv) a foreign contractor, a
digit TIN. foreign enterprise or an
➢ Rate shall be 50% higher if payee does not receive association or a body
payment by bank transfer or by mobile financial established outside
services or any other digital means approved by Bangladesh;
the Bangladesh Bank.
(xv) any e-commerce platform,
not being any other
specified persons, called
by whatever name having
annual turnover exceeding
Taka one crore; and
(xvi) any artificial juridical
person not mentioned
above;
Royalty Section Description of payment Rate of deduction of tax Same as section 52 At the time of making Respective Deputy
52A Up to taka 25 lakh of base 10% payment. Commissioner of
amount (Payment includes a Taxes of the
Above taka 25 lakh of base 12% transfer ,a credit or Company
6
amount adjustment of
payment or an order
Rate shall be 50% higher if payee have no 12 digit TIN or instruction of
making payment )
Up to taka 25 lakh of base Above taka 25 lakh Respective Deputy
Certain Service Includes
amount of base amount Commissioner of
1) Advisory or consultancy service 10% 12% Same as section 52 At the time of making Taxes of the
2) Professional service, technical services 10% 12% of such payment. Company
fee, or technical assistance fee (Payment includes a
3)(i) Catering service 10% 12% transfer ,a credit or
Section
7 (ii) Cleaning service 1.5% 2% adjustment of
52AA
(iii) Collection and recovery agency- both commission or fee and payment or an order
(iv) Private security service gross bill amount tax or instruction of
(v) Manpower supply service shall be the higher amount making payment )
(vi) Creative media service between (i) and (ii) where
(vii) Public relations service (i) tax calculated on
(viii) Event management service; commission or fee applying
Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 3 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
(ix) Training, workshop, etc. the relevant rate in the table;
organization and management service and
(x) Courier service; (ii) B x C x D, where
(xi) Packing and Shifting service; B = Gross bill amount
(xii) any other service of similar C = 10% and
nature- D = rate of tax applicable on
(a) on commission commission or fee
(b) on gross amount
4) Media buying agency service 10% 12%
(a) on commission 0.5% 0.65%
(b) on gross amount both commission or fee and
gross bill amount tax shall be
the higher amount between (i)
and (ii) where (i) tax calculated
on commission or fee applying the
relevant rate in the table; and
(ii) B x C x D, where
B = Gross bill amount
C = 2.5% and
D = rate of tax applicable on
commission or fee
5) Indenting commission 6% 8%
6) Meeting fees, training fees or 10% 12%
honorarium
7) Mobile network operator, 10% 12%
technical support service provider
or service delivery agents engaged
in mobile banking operations
8) Credit rating agency 10% 12%
9) Motor garage or workshop 6% 8%
10) Private container port or 6% 8%
dockyard service
11) Shipping agency commission 6% 8%
12) Stevedoring/berth operation –
(a) on commission or fee 10% 12%
(b) on gross bill amount 1.5% 2%
13) (i)Transport service, carrying 3% 4%

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 4 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
service, vehicle rental service;
(ii) Any other service under any
sharing economy platform
including ride sharing service,
coworking space providing
service and accommodation
providing service.;
13A) Wheeling charge for 2% 3%
electricity transmission
14) Any other service which is
not mentioned in Chapter VII of 10% 12%
this Ordinance and is not a service
provided by any bank, insurance
Rate shall be 50% higher if payee have no ETIN
or financial institutions
Clearing and forwarding agents Section 10 % The Commissioner of Customs. At the time of Respective Deputy
52AAA clearance of goods Commissioner of
8
imported or exported. Taxes of the
Company
Cigarettes manufacturing Section 10 % Responsible person for selling At the time of selling Respective Deputy
52B banderols. banderols. Commissioner of
9
Taxes of the
Company
Compensation against acquisition Section o 6% within the jurisdiction of City Corporation, Paurashava Government (acquiring At the time of paying Respective Deputy
or Cantonment Board; and Commissioner of
10 of property 52C
o 3% outside City Corporation, Paurashava or Cantonment
authority). compensation.
Taxes of the Company
Board
Interest on saving instruments Section 10 % Person responsible for making At the time of making The CT Dhaka-
52D (a)No tax shall be deducted where the cumulative investment at payment payment. Zone-10.
the end of the income year in the Pensioner’ Savings certificate CTG-Zone-04
11 does not exceed Taka 5 lakh) Other respective
(b)No tax shall be deducted from interest or profit arising from Wage Zone
earners development bond, US dollar premium bond, US dollar
investment bond, Euro investment bond , Pound sterling investment
bond or Pound sterling premium bond
Payment to a beneficiary of Section 5% on whole amount Person responsible for making At the time of making Respective Deputy
workers’ participation fund 52DD No tax shall be deducted from the payment of worker’s payment payment. Commissioner of
12 participation fund subject to following conditions: Taxes of the Company
(i) the beneficiary does not have taxable income; and
(ii) amount of fund does not exceed Taka 25,000.

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 5 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
Brick Manufacturer Section o Tk.45,000 for one section brick field Person responsible for issuing At the time of issuing Respective Deputy
52F o Tk.70,000 for one and half section brick field permission or renewal of permission or renewal Commissioner of
13 o Tk. 90,000 for two section brick field permission. of permission. Taxes of the
o Tk. 1,50,000 for brick field producing bricks through Company
automatic machine.
Commission of letter of credit Section 52I 5% Person responsible for opening At the time of Respective Deputy
14 letter of credit. collecting Commissioner of
commission Taxes of the Company
1) Commission of travel agent 0.30 %of the total value of the ticket or any charge for Person responsible for making At the time of making Respective Deputy
carrying cargo by air payment payment. (Payment Commissioner of
Section
15 2) Incentive bonus, performance Rate of tax is =(A/B) x C included a transfer, a Taxes of the
52JJ
bonus or any other benefits is to A(Incentive bonus, performance bonus)/B(Commission or credit or adjustment Company
be paid in addition to commission Discount)X C(Tax on Commission or Discount) of payment)
Renewal of trade license by City Section (a) Tk. 3,000 Dhaka & Chittagong City Corporation. Any person responsible for At the time renewal Respective Deputy
Corporation or Paurashava 52K (b) Tk.2,000 in any city corporation, other than Dhaka and renewal the trade license trade license. Commissioner of
Chittagong City Corporation. Taxes of the
16
Company
(c) Tk. 1,000 in any Paurashava at any district headquarter.
(d) Tk. 500 in any other paurashava.
Freight forward agency Section 15 % Person responsible for making At the time of making Respective Deputy
commission 52M payment. payment or credit of such
Commissioner of
17 payment to the account of Taxes of the
the payee. Company
Purchase of Power Section 6% Bangladesh Power Development At the time of Respective Deputy
52N Board may, on an application made in this behalf give a Board or any other person payment. Commissioner of
18 certificate in writing that the payment for that income year engaged in power distribution. Taxes of the
shall be made without any deduction or with deduction at a Company
proportionately reduced rate.
Foreign technician serving in Section 5% Person responsible for making At the time of making Respective Deputy
diamond cutting industries 52O payment. payment. Commissioner of
19
Taxes of the
Company
Deduction of tax for services from Section 52P 5% Same as section 52 At the time of making Respective Deputy
renting or using space of (No deduction shall be made when such payment is paid of such payment. Commissioner of
20 ❖ Convention hall, directly to the Govt.) (Payment includes a Taxes of the
❖ Conference Centre, transfer ,a credit or Company
❖ Room or as the case may be adjustment of

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 6 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
❖ Hall, payment or an order
❖ Hotel, or instruction of
❖ Community Centre making payment )
❖ Any Restaurant
Deduction of Tax from any Section 10 % Person responsible for making At the time of making Respective Deputy
income remitted from abroad in 52Q Provided that the rate of deduction under this section shall payment. payment or credit of such Commissioner of
connection with any service, be 7.5% (seven-point five percent) where the remittance payment to the account of Taxes of the
revenue sharing. - has been received as consideration for contracts on the payee. Company
manufacturing, process or conversion, civil work,
construction, engineering or works of similar nature:
Provided that no deduction under this section shall be
made:
21 ➢ the proceeds of sales of software or services of a
resident if the income from such sales or services
is exempted from tax under paragraph 33 of Part
A of the Sixth Schedule
➢ An y in co m e earn ed in ab ro ad b y an
in d iv idu al assessee being a Bangladeshi
citizen and brought any such income into
Bangladesh as per existing laws applicable
in respect of foreign remittance
a) Deduction of tax from Section 1.5 % Respective Bank At the time of crediting, it The CT Dhaka-
international gateway service in 52R to the account of the Zone-15.
respect of international phone call payee
is received
b) Deduction of tax from international Section 7.5 % International Gateway (IGW) At the time of making
gateway services operator in respect 52R services operator payment or credit of such
of international phone call is paid or payment to the account of
credited to the account of the payee.
22
Interconnection Exchange (ICX),
Access Network Services (ANS) or
any other person under an agreement
with the (BTRC)
c)Where any amount is paid or Section 7.5 % Interconnection Exchange (ICX At the time of making
credited in respect of outgoing 52R or Access Network Services (A payment or credit of such
international calls, the provider of NS) services operator payment to the account of
Interconnection Exchange (ICX) the payee.

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 7 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
services or Access Network Services
(ANS) shall deduct tax at the rate of
seven point five percent (7.5%) on the
whole amount so paid or credited at
the time of such payment or credit”;
Deduction of tax from excess of Section 52T 5% Person responsible for making At the time of making Respective Deputy
23 premium paid on life insurance payment. payment of such payment Commissioner of
policy Taxes of the Company
Deduction from payment on Section 1 3% of purchase amount Respective Bank or financial At the time of paying The CT CTG-Zone-
account of Local letter of credit 52U 2 1% of credited amount if distributor paid under credit Institutions or crediting proceeds. 02(CTG &Cox. Dist.)
24
facility All other Dist. LTU,
Dhaka.
Deduction from payment by Section 10 % Principal Officer of a cellular At the time of making Respective Deputy
cellular mobile phone operator 52V mobile phone operator company payment or credit of such Commissioner of
25
responsible for making such payment to the account of Taxes of the
payment the payee. Company
Importer Section 53 0% to 20 % as per Rule 17A Commissioner of Customs At the of clearing of Respective Deputy
and rule goods Commissioner of
17A Board may, on an application made in this behalf give a Taxes of the Company
26
certificate in writing that the payment for that income year
shall be made without any deduction or with deduction at a
proportionately reduced rate.
House property or hotel Section 5% Same as section 52 At the time of making Respective Deputy
accommodation 53A of such payment. Commissioner of
(Payment includes a Taxes of the
27 transfer ,a credit or Company
adjustment of payment
or an order or
instruction of making
payment ))
Shipping business of a resident Section o 5 % of total freight received or receivable in or out of Commissioner of Customs or At the time of port Respective Deputy
53AA Bangladesh. any other authority duly clearance Commissioner of
28
o 3 % of total freight received or receivable from services authorized Taxes of the
rendered between two or more foreign countries. Company
Export of manpower Section.- 10 % on service charge or fees received. The Director General, Bureau Before giving Respective Deputy
29 53B of Manpower, Employment and clearance for export Commissioner of
Tk, 50,000 for license or renew of license. Training of manpower Taxes of the Company

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 8 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
Export of Knit-wear and woven Section 0.5% Bank At the time of crediting The CT Dhaka-
garments, terry towel, jute goods, 53BB the proceeds to the Zone-04.
30 frozen food, vegetables, leather account of the exporter
goods, packed food.
Member of Stock Exchanges Section 0.05 % on the value of shares and mutual funds transacted. The CEO of Stock Exchanges At the time of Respective Deputy
53BBB 10% on the commission received or receivable payment for such Commissioner of
31
transaction Taxes of the
Company
Export or any goods except knit- Section 0.5% Bank At the time of The CT Dhaka-
wear and woven garments, terry 53BBBB crediting the proceeds Zone-04.
32 towel, jute goods, frozen food, to the account of the
vegetables, leather goods, packed exporter
food
Goods or property sold by public Section 53C 10%% of sale price. o Government or any authority Before delivering Respective Deputy
auction 1% in case of Sale price of tea by public auction o Statutory Corporation and its goods. Commissioner of
units Taxes of the
o Any company as defined u/s Company
33
2(20) of the ITO
o Banking Company
o Insurance Company
o Co-operative Bank;
Courier Section 15% on the amount of service charge accrued from the o Any company as defined u/s Before remit the Respective Deputy
business of a non-resident 53CCC shipment of goods, documents, parcels or any other things 2(20) of the ITO working as service charge Commissioner of
34
outside Bangladesh agent of non resident courier Taxes of the
company in Bangladesh Company
Deduction from payment to Section a)10% on the payment in case of purchase of film, drama, Person responsible for making At the time of making Respective Deputy
actors, actresses, producers, etc.- 53D any kind of TV or Radio program payment. payment or credit of Commissioner of
35
b)10 % on the payment to actor/actress (if payments payment to the Taxes of the
exceeds Tk. 10,000) account of the payee. Company
Deduction of tax at source from Section 10% Person responsible for making At the time of making Respective Deputy
export cash subsidy. 53DDD payment. payment or credit of Commissioner of
36 payment to the account Taxes of the Company
of the payee.
1)Commission, discount, fees, incentive Section 10% Any company includes a firm. At the time of making Respective Deputy
or performance bonus or any other 53E payment or allowing the Commissioner of
performance related incentive or any benefits(Payment
37 other payment or benefit of the similar Taxes of the
includes a transfer ,a
credit or
Company
nature for distribution or marketing of
goods, adjustment of payment

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 9 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
or an order or
instruction of making
payment )
2) payment in relation to the 1.5% Any company. At the time of
promotion of the company or its payment
goods to any person engaged in
the distribution or marketing of
the goods
Sell of goods to a distributor or 5 %(BXC) Any company. Other than oil At the time of Respective Deputy
any other person under a contract 5 %{B(the selling price of the company to the distributor marketing company payment Commissioner of
whether written or not or the other person X C(5%)} Taxes of the
Company
Commission or remuneration paid Section 10% Respective Bank. At the time of The CT Dhaka-Zone-
06.
37 to agent of foreign buyer 53EE payment.
CTG-Zone-03
Other respective Zone
Interest on saving deposits and Section (1) 10% who will furnish 12 digits TIN to the payer. o Bank At the time of making The CT Dhaka-
fixed deposits 53F o Non-banking Financial payment or credit of Zone-01.
(2) 15% who will fails to furnish 12 digits TIN to the payer payment to the account
Institution
39 (But up to Taka one lac investment at any time in the year, of the payee whichever
o Leasing Company
applicable rate is 10%). is earlier.
o Housing Finance Company
(3) In case of fund 5% on interest or profit
Parent 12-digit TIN shall be considered as TIN of a minor
Collection of tax from person Section Sub-Registrar/Registration At the time Respective Deputy
engaged in real estate or land 53FF A) Residential Building authority. registration. Commissioner of
development business. Area Rate of tax Taxes of the
Per SM Company
(i) Gulshan Model Town, Banani, Baridhara, Tk 1,600
Motijeel Commercial Area and Dilkusha
Commercial Area of Dhaka
(ii) Dhanmondi Residential Area, Defense Officers Tk 1,500
40 Housing Society (DOHS), Mahakhali, Lalmatia
Housing Society, Uttara Model Town,
Bashundhara Residential Area, Dhaka
Cantonment Area, Karwan Bazar Commercial
Area of Dhaka and Panchlaish Residential
Area, Khulshi Resindential Area, Agrabad and
Nasirabad of Chittagong
(iii) in areas other than the areas mentioned in
sub-clauses (i) and (ii)

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 10 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
A. Dhaka South City Corporation, Dhaka Tk 1,000
North City Corporation and Chittagong City
Corporation,
B. Other city corporation Tk.700
C. any other area Tk 300
Provided that the rate of source tax under clause (a) in respect of
a residential apartment shall be twenty percent (20%) lower if
the size of the apartment, including common space, is not more
than seventy square metre, and forty percent (40%) lower if the
size of the apartment, including common space, is not more
than sixty square metre.

B) Commercial Building
Area Rate of tax
Per SM
(i) Gulshan Model Town, Banani,
Tk.6,000
Baridhara, Motijeel Commercial Area
and Dilkusha Commercial Area of Dhaka
(ii) Dhanmondi Residential Area, Defense
Officers Housing Society (DOHS),
Mahakhali, Lalmatia Housing Society,
Uttara Model Town, Bashundhara
Residential Area, Dhaka Cantonment Tk. 5,000
Area, Karwan Bazar Commercial Area of
Dhaka and Panchlaish Residential Area,
Khulshi Resindential Area, Agrabad and
Nasirabad of Chittagong
(iii) in areas other than the areas mentioned in
sub-clauses (i) and (ii) –
A. Dhaka South City Corporation,
Tk. 3,500
Dhaka North City Corporation and
Chittagong City Corporation, .
B. Other city corporation Tk. 2500
C. any other area Tk. 1200
In case of land Rate of tax
(i) Dhaka, Gazipur, Narayanganj,
5%
Munshiganj, Manikganj, Narsingdi and
On deed value
Chittagong districts;
(ii) any other district. 3%
On deed value

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 11 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
Insurance commission Section 5% Insurance Company At the time of making Respective Deputy
53G payment or credit of Commissioner of
41 payment to the account Taxes of the
of the payee whichever Company
is earlier.
Fees of surveyors of general Section 10 % Insurance Company At the time of making Respective Deputy
insurance company 53GG payment. Commissioner of
42
Taxes of the
Company
Transfer of property Section Sub-Registrar/Registration At the time of Respective Deputy
53H and (a) Rate of tax for land or land & building located in authority. registration. Commissioner of
rule 17 II the following commercial areas: Taxes of the
Company
Name of the
SL Rate of tax per katha
commercial area or
No. (1.65 decimal)
areas
1. Gulshan, Banani, 4% of the deed value or
Motijheel, Dilkhusha, taka 10,80,000/-
North South Road, whichever is higher
Motijheel Expansion
areas and Mohakhali of
Dhaka
43 2. Karwan Bazar of Dhaka 4% of the deed value or taka
6,00,000/- whichever is
higher
3. Agrabad and CDA 4% of the deed value or
Avenue of Chittagong taka 3,60,000/- whichever
is higher
4. Narayanganj, Banga 4% of the deed value or
Bandhu Avenue, Badda, taka 3,60,000/- whichever
Sayedabad, Postogola is higher
and Gandaria of Dhaka
5. Uttara Sonargaon 4% of the deed value or
Janapath, Shahbag, taka 6,00,000/- whichever
Panthapath, Banglamotor, is higher
Kakrail of Dhaka

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 12 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
6. Nababpur and Fulbaria 4% of the deed value or taka
of Dhaka 3,00,000/- whichever is
higher:

Provided that where any structure, building, flat, apartment

or floor space is situated on the land, an additional tax shall
be paid at the rate of taka 600/- (six hundred) per square
meter or four per cent of the deed value of such structure,
building, flat, apartment or floor space, whichever is higher.

(b) Rate of tax for land or land & building located in

the following areas:

SL Name of the area or Rate of tax per katha

No. areas (1.65 decimal)
1. Uttara (Sector 1-9), 4% of the deed value or
Khilgaon rehabilitation taka 90,000/- whichever
area (beside 100 feet is higher
road), Azimpur,
Rajarbagh
rehabilitation area
(beside bishwa road),
Baridhara DOHS,
Bashundhara (Block:
A–G), Niketon of
Dhaka, Agrabad,
Halishohar,
Panchlaish, Nasirabad,
Mehedibag of
Chittagong
2. Gulshan, Banani and 4% of the deed value or
Baridhara of Dhaka taka 3,00,000/-
whichever is higher
3. Dhanmondi of Dhaka 4% of the deed value or
taka 2,40,000/-
whichever is higher

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 13 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
4. Kakrail, Segunbagicha, 4% of the deed value or
Bijoynagar, Eskaton, taka 1,80,000/- ever is
Green Road, Elephant higher
Road, Fakirapool,
Arambagh, Maghbazar
(within one hundred feet
of main road), Tejgaon
Industrial Area, Sher-e-
Banglanagar
Administrative Area,
Agargaon Administrative
Area, Lalmatia,
Mohakhali DOHS,
Cantonment of Dhaka and
Khulshi of Chittagong
5. Kakrail, Segunbagicha, 4% of the deed value or
Bijoynagar, Eskaton, taka 1,20,000/-
Green Road, Elephant whichever is higher
Road area (outside one
hundred feet of main
road) of Dhaka
6. Green Road (from 4% of the deed value or
Road 3 to 8 of taka 2,40,000/-
Dhanmondi whichever is higher
Residential Area of
Dhaka)
7. Uttara (Sector 10 to 14), 4% of the deed value or
Nikunj (south), Nikunj taka 60,000/- whichever
(North),Badda Rehabilitation is higher
Area, Ganderia Rehabilitation
Area, Syampur Rehabilitation
Area, IG Bagan
Rehabilitation Area, Tongi
Industrial Area of Dhaka
8. Syampur Industrial Area, 4% of the deed value or
Postagola Industrial Area taka 48,000/- whichever
and Jurain Industrial Area is higher
of Dhaka

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 14 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
9. Khilgaon 4% of the deed value or
Rehabilitation Area taka
(beside less than 100
feet road), Rajarbagh
Rehabilitation Area 72,000/- whichever is
(beside 40 feet and higher
other internal road) of
Dhaka
10. Goran (beside 40 feet 4% of the deed value or
road) and Hajaribagh taka 30,000/- whichever
Tannery Area of Dhaka is higher:
Provided that where any structure, building, flat, apartment
or floor space is situated on the land, an additional tax shall
be paid at the rate of taka 600/- (six hundred) per square
meter or four per cent of the deed value of such structure,
building, flat, apartment or floor space, whichever is higher.
(c) Rate of tax for land or land & building located in
the following areas:
SL
Name of the area or areas Rate of tax
No.
1. Within the jurisdiction of 4% of deed value
Rajdhani Unnayan
Kartripakya (RAJUK) and
Chittagong Development
Authority (CDA) except areas
specified in schedule (a) and (b)
2. Within the jurisdiction of 3% of deed value
Gazipur, Narayanganj,
Munshiganj, Manikganj,
Narsingdi, Dhaka and
Chittagong districts [excluding
Rajdhani Unnayan Kartripakya
(RAJUK) and Chittagong
Development Authority (CDA)],
and within any City Corporation
(excluding Dhaka South City
Corporation and Dhaka North
Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 15 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
City Corporation) and
Cantonment Board
3. Areas within the jurisdiction 3% of deed value
of a paurasabha of any district
headquarter
4. Areas of any other 2% of deed value
Pauroshova
5. Any other area not specified 1% of deed value.
in schedule (a), (b) and (c)

Nothing in this section shall apply to a document relating

to:
(a)sale by a bank or any financial institution as a mortgagee
empowered to sell.

(b) mortgage of any property to any bank or any financial

institution of against any loan.
(c) transfer of property to a trust or special purpose vehicle
established only for the purpose of issuing sukuk approved
by government or Securities Exchange Commission and
vice versa.
Collection of tax from lease of Section 4% of lease amount Registration authority. At the time of Respective Deputy
property 53HH registration. Commissioner of
44
Taxes of the
Company
Interest on deposit of post office Section 53I 10 % Responsible person paying At the time of making Respective Deputy
& saving bank account interest payment or credit of Commissioner of
45 payment to the account Taxes of the
of the payee whichever Company
is earlier.
Rental value of vacant land or Section 53J 5% Same as section 52 At the time of making Respective Deputy
plant or machinery of such payment. Commissioner of
(Payment includes a Taxes of the Company
46 transfer ,a credit or
adjustment of payment
or an order or
instruction of making
payment )

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 16 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
Advertisement of newspaper or Section 4% o Government or any authority At the time of making Respective Deputy
magazine or private television 53K o Statutory Corporation and its such payment. Commissioner of
channel or private radio station units Taxes of the
o Any company as defined u/s Company
2 (20) of the ITO
o Banking Company
47 o Insurance Company
o Co-operative Bank
o N.G.O registered with NGO
affairs Bureau
o University, Medical College,
Dental College and
Engineering College
Collection of tax from transfer of Section 5% The security and Exchange At the time of transfer or
Respective Deputy
shares by the sponsor 53M Commission or Stock Exchange declaration of transfer or
Commissioner of
48
shareholders of a company listed according consent to
Taxes of the
on stock exchange. transfer.Company
Collection of tax from transfer ofSection 15 % The principal officer of Stock At the time of transfer
Respective Deputy
share of shareholder of Stock 53N Exchange or declaration
Commissioner of
of
49
Exchanges transfer or according
Taxes of the
consent to transfer.
Company
Deduction of tax from any sum Section 53P 15% Real estate or land developer At the time of making
Respective Deputy
paid by real estate developer to such payment.
Commissioner of
50
land owner Taxes of the
Company
Dividends Section 54 (1) Bangladeshi company -20 % Company distributing dividend. At the time of making Respective Deputy
(2) Resident or non-resident Bangladeshi person other payment. Commissioner of
than company – Taxes of the
a) 10 % if furnish 12 digit TIN to the payer Company
51 b) 15 % if fails to furnish 12 digit TIN to the payer
Provided that the provision of this section shall not be
applicable to any distribution of taxed dividend to a company
if such taxed dividend enjoys tax exemption under the
provisions of the paragraph 60 of Part A of the Sixth Schedule
Income from lottery Section 55 20 % Sponsor At the time of making Respective Deputy
payment. Commissioner of
52
Taxes of the Company

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 17 of 19
 Reference To be paid in favor
Sl. When will deduct/
Head of sections Rate of deduction/collection Who will deduct/collect of
No. collect
and rules
Income of non-residents [Sec.- 56]
Sl Rate of Respective Deputy
Description of services or payments
No deduction of tax Commissioner of
1 Advisory or consultancy service 20% Taxes of the
2 Pre-shipment inspection service 20% Company
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 event Management 20%
9 Commission 20%
10 Royalty, license fee or payments related to intangibles 20%
11 Interest 20% At the time of
12 Advertisement broadcasting 20% payment
53
13 Advertisement making or Digital Marketing 15% (Payment includes a
14 Air transport or water transport not being carrying services mentioned section 102 or 103A 7.5% transfer ,a credit or
Same as section 52
Contractor or sub-contractor of manufacturing, process or conversion, civil Adjustment of
15 7.5% payment or an order
work, construction, engineering or works of similar nature.
16 Supplier 7.5% or instruction of
17 Capital gain 15% making payment )
18 Insurance premium 10%
19 Rental of machinery, equipment etc. 15%
Dividend-
20 (a) company, fund and trust 20%
(b) any other person not being a company, fund and trust- 30%
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%
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 shall be made without any deduction or, in applicable
cases, with a deduction at the reduced rate as mentioned in the certificate.

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 18 of 19
Depositing Code:
Details of code as per zone are given below irrespective of company and other than company from whom deduction will be made:
S.L Taxes Zones Company (Payee) Other than company (Payee)
1 Taxes Zone-01, Dhaka 1-1141-0001-0101 1-1141-0001-0111
2 Taxes Zone-02, Dhaka 1-1141-0005-0101 1-1141-0005-0111
3 Taxes Zone-03, Dhaka 1-1141-0010-0101 1-1141-0010-0111
4 Taxes Zone-04, Dhaka 1-1141-0015-0101 1-1141-0015-0111
5 Taxes Zone-05, Dhaka 1-1141-0020-0101 1-1141-0020-0111
6 Taxes Zone-06, Dhaka 1-1141-0025-0101 1-1141-0025-0111
7 Taxes Zone-07, Dhaka 1-1141-0030-0101 1-1141-0030-0111
8 Taxes Zone-08, Dhaka 1-1141-0035-0101 1-1141-0035-0111
9 Taxes Zone-09, Dhaka 1-1141-0080-0101 1-1141-0080-0111
10 Taxes Zone-10, Dhaka 1-1141-0085-0101 1-1141-0085-0111
11 Taxes Zone-11, Dhaka 1-1141-0090-0101 1-1141-0090-0111
12 Taxes Zone-12, Dhaka 1-1141-0095-0101 1-1141-0095-0111
13 Taxes Zone-13, Dhaka 1-1141-0100-0101 1-1141-0100-0111
14 Taxes Zone-14, Dhaka 1-1141-0105-0101 1-1141-0105-0111
15 Taxes Zone-15, Dhaka 1-1141-0110-0101 1-1141-0110-0111
16 Taxes Zone-01,Chitagong 1-1141-0040-0101 1-1141-0040-0111
17 Taxes Zone-02, Chittagong 1-1141-0045-0101 1-1141-0045-0111
18 Taxes Zone-03, Chittagong 1-1141-0050-0101 1-1141-0050-0111
19 Taxes Zone-Khulna 1-1141-0055-0101 1-1141-0055-0111
20 Taxes Zone-Rajshahi 1-1141-0060-0101 1-1141-0060-0111
21 Taxes Zone-Rangpur 1-1141-0065-0101 1-1141-0065-0111
22 Taxes Zone-Sylhet 1-1141-0070-0101 1-1141-0070-0111
23 Taxes Zone-Barishal 1-1141-0075-0101 1-1141-0075-0111
24 Taxes Zone-Gazipur 1-1141-0120-0101 1-1141-0120-0111
25 Taxes Zone-Narayanganj 1-1141-0115-0101 1-1141-0115-0111
26 Taxes Zone-Bogora 1-1141-0140-0101 1-1141-0140-0111
27 Taxes Zone-Comilla 1-1141-0130-0101 1-1141-0130-0111
28 Taxes Zone-Mymensing 1-1141-0125-0101 1-1141-0125-0111
29 Large Taxpayers Unit 1-1145-0010-0101 1-1141-0010-0111
30 Central Survey Zone 1-1145-0005-0101 1-1141-0005-0111

The End

Summary of Withholding Income Tax as per Finance Act, 2021- Direct Tax Division, Ahmed Mashuque & Co. Page 19 of 19