The Government of Bangladesh has enacted a new Income Tax Act, 2023, repealing the Income Tax Ordinance, 1984. The Jatiya Sangsad (National Parliament) passed the new Act and gazetted it on June 22, 2023.
This significant development is aimed at modernizing and streamlining the country’s income tax system, promoting transparency, and fostering a business-friendly environment.
The new Income Tax Act 2023 brings several notable revisions and improvements to the existing framework. It introduces measures to simplify tax procedures, enhance taxpayer compliance, and ensure a fair and equitable tax regime.
Some key highlights of the new Income Tax Act include:
1️⃣ Simplified Tax Structure: The Act introduces a simplified tax structure with revised tax rates and slabs, catering to the needs of both individuals and businesses.
2️⃣ Digital Transformation: Embracing the digital age, the Act emphasizes using technology for tax administration, enabling more accessible filing of tax returns and faster processing, including the digital judicial process.
3️⃣ Strengthened Anti–Avoidance Provisions: The Act incorporates robust anti-avoidance provisions to deter tax evasion and ensure a level playing field for all taxpayers.
4️⃣ Enhanced tax administration: The new Act enhances tax administration, making it more efficient and transparent.
The new Income Tax Act 2023 is a significant step forward in developing Bangladesh’s tax system. It is expected to improve tax compliance and revenue mobilization, which will help to support the country’s economic growth.
As professionals, we must familiarize ourselves with the new provisions and understand their implications. It will enable us to provide better guidance to our clients, adapt our strategies accordingly, and ensure compliance with the revised tax regime.
We want everyone to explore the full text of the Income Tax Act 2023 (Downloadable below) and stay updated with any guidance or notifications issued by the relevant authorities. Let’s leverage this opportunity to deepen our knowledge and expertise in tax matters, contributing to the growth and development of our organizations and the nation.
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