In a significant update this year, the government of Bangladesh has introduced a new income tax law requiring all government employees, irrespective of their salary scale, to file tax returns by 30 November 2023. This change applies to everyone, from top-level officials to lower-tier employees such as peons and guards.
For the first time, filing income tax returns has become mandatory for all public servants, even those whose salaries fall below the taxable income threshold. Failure to submit tax returns will result in salary suspensions under the newly enacted Income Tax Law 2023.
Key Points to Know:
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Mandatory for All Government Employees: Whether you’re earning above or below the tax-exempt limit, filing a tax return is now compulsory for every government employee. Previously, this requirement was only for those with a basic salary exceeding Tk16,000.
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No Tax for Non-Taxable Income: Employees with annual earnings below Tk3.5 lakh are not required to pay taxes, but they must still file their returns. It’s important to note that filing is different from paying taxes. Even if your salary is non-taxable, the government requires you to declare your income through a return.
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e-TIN Registration: All employees must have an Electronic Taxpayer Identification Number (e-TIN). If you don’t have one, obtaining an e-TIN should be your first step. You won’t be able to file a return without it.
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Assets and Savings: Many government employees, especially those earning lower wages, might have personal savings, investments, or additional income sources. This law ensures that even individuals with low salaries but substantial wealth are brought under the tax system. If you own multiple properties or have investments, this is an opportunity to declare them legally.
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Penalties for Non-Compliance: The government has made it clear – failing to file your tax return by the deadline will result in a suspension of your salary. Proof of return submission is now a mandatory requirement to continue receiving your wages.
How TaxTalk BD Can Help
At TaxTalk BD, we understand that navigating these new requirements can be challenging, especially for those unfamiliar with tax filing processes. That’s why we are offering specialized services for:
- e-TIN Registration
- Income Tax Preparation
- Tax Return Filing Assistance
- Consultations on Asset Declaration and Wealth Management
We also offer online tax filing support, ensuring that you can meet the new requirements with ease and without unnecessary stress. Our experienced consultants are here to help public servants comply with the new law while minimizing any financial strain.
Final Thoughts
This new law may seem daunting for many, but it’s a step towards a more transparent and fair taxation system. By expanding the tax net to include all government employees, the government is working to capture undisclosed assets and incomes. Filing your return now is not just a requirement—it’s an opportunity to ensure your finances are properly documented.
For help with any tax-related queries or services, feel free to contact us at TaxTalk BD. We’re here to guide you through every step of the process.