14 June 2017
BANGLADESH: Companies Now Liable for Employees’ Unpaid Income Tax
Private companies looking to claim corporate tax deductions against employee wages are now obliged to ensure that workers file their own tax returns. The requirement applies to any employee in receipt of a monthly salary of Taka 16,000 (US$195) or more.
The new requirement comes into effect for the 2017-2018 fiscal year and will see companies obliged to cover the tax liability of all employees who fail to file the required tax return. The move, initiated by Bangladesh’s National Board of Revenue, is aimed at both reducing tax evasion by private sector employers and preventing fraudulent corporation tax deduction claims with regard to non-existent employees.