Thursday, 07 November, 2024
The interim government has announced a reduction in the tax rate for investors earning over Tk 5 million in profits from stock market trading, lowering it to 15 percent for the current and upcoming fiscal years.
The budget approved by the previous parliament for the current fiscal year maintained the capital gains tax at 30 percent.
In addition to the tax reduction, the interim government has implemented several measures regarding the capital gains tax, including lowering the surcharge on investors' net assets. This change is expected to significantly decrease the tax burden on investors by nearly half.
The Bangladesh Securities and Exchange Commission (BSEC), which regulates the stock market, reported that the National Board of Revenue (NBR) issued a circular on the tax rate adjustment on Monday.
The NBR has sent a notice announcing the new tax rate,” said Rezaul Karim, executive director and spokesperson for the BSEC.
He said the commission had previously advocated for a reduction in the capital gains tax as a sensible measure. With the investor-friendly government implementing this decision swiftly, we anticipate that investors will see greater returns than ever before.
Furthermore, he said that both the government and the commission are actively working on additional policy support measures to enhance the stock market and boost investor confidence.
The budget passed in June says that the regular tax rates on capital gains would apply for the current and next fiscal year if the shares were sold within five years of purchase.
If capital gains exceed Tk 5 million, they are subject to the standard tax rate, which can reach a maximum of 30 per cent. Additionally, a surcharge on capital gains could add as much as 35 percent, depending on the value of the assets involved.
With the combined capital gains tax and surcharge, the total tax rate on stock market income could climb as high as 40.50 per cent.
Under the new regulations, the tax rate on capital gains from shares held for less than five years will be set at 15 per cent. The updated surcharge rates will be as follows: 10 per cent for investors with net assets exceeding Tk 40 million; 20 per cent for those with assets over Tk 100 million; 30 per cent for investors with more than Tk 200 million; and 35 per cent for those with net assets exceeding Tk 500 million.
The minimum rate of the surcharge has been reduced from 15 per cent to 10 per cent. However, the maximum rate of 45 percent still applies for banks, financial institutions, insurance companies and mobile companies.
The new tax rate will be applicable for the current and next fiscal year.
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The interim government has announced a reduction in the tax rate for investors earning over Tk 5 million in profits from stock market trading, lowering it to 15 percent for the current and upcoming fiscal years.
The budget approved by the previous parliament for the current fiscal year maintained the capital gains tax at 30 percent.
In addition to the tax reduction, the interim government has implemented several measures regarding the capital gains tax, including lowering the surcharge on investors' net assets. This change is expected to significantly decrease the tax burden on investors by nearly half.
The Bangladesh Securities and Exchange Commission (BSEC), which regulates the stock market, reported that the National Board of Revenue (NBR) issued a circular on the tax rate adjustment on Monday.
The NBR has sent a notice announcing the new tax rate,” said Rezaul Karim, executive director and spokesperson for the BSEC.
He said the commission had previously advocated for a reduction in the capital gains tax as a sensible measure. With the investor-friendly government implementing this decision swiftly, we anticipate that investors will see greater returns than ever before.
Furthermore, he said that both the government and the commission are actively working on additional policy support measures to enhance the stock market and boost investor confidence.
The budget passed in June says that the regular tax rates on capital gains would apply for the current and next fiscal year if the shares were sold within five years of purchase.
If capital gains exceed Tk 5 million, they are subject to the standard tax rate, which can reach a maximum of 30 per cent. Additionally, a surcharge on capital gains could add as much as 35 percent, depending on the value of the assets involved.
With the combined capital gains tax and surcharge, the total tax rate on stock market income could climb as high as 40.50 per cent.
Under the new regulations, the tax rate on capital gains from shares held for less than five years will be set at 15 per cent. The updated surcharge rates will be as follows: 10 per cent for investors with net assets exceeding Tk 40 million; 20 per cent for those with assets over Tk 100 million; 30 per cent for investors with more than Tk 200 million; and 35 per cent for those with net assets exceeding Tk 500 million.
The minimum rate of the surcharge has been reduced from 15 per cent to 10 per cent. However, the maximum rate of 45 percent still applies for banks, financial institutions, insurance companies and mobile companies.
The new tax rate will be applicable for the current and next fiscal year.
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