Tax Law

Tax Law in Bangladesh is the legal framework governing the assessment, collection, regulation, and enforcement of taxes imposed by the Government. It includes income tax, VAT, customs duties, surcharge, withholding obligations, transfer pricing, corporate tax compliance, and appeals relating to tax assessments. The principal legislation includes the Income-tax Act, 2023, the VAT and Supplementary Duty Act, 2012, the Customs Act, 1969, and various statutory rules, SROs, and circulars issued by the National Board of Revenue (NBR). These laws collectively regulate how individuals, companies, and other entities are taxed, how returns must be filed, and how disputes concerning tax liabilities are adjudicated. In Bangladesh, the administration of tax matters falls under the Ministry of Finance, which supervises the National Board of Revenue (NBR)—the central authority responsible for formulating tax policy, issuing regulations, collecting revenue, conducting audits, and ensuring compliance. NBR operates through three main wings: Income Tax, VAT, and Customs, each led by a Member of the Board. The Ministry of Law, Justice and Parliamentary Affairs oversees the legal mechanisms for tax adjudication, interpretation of tax statutes, and judicial proceedings arising from tax disputes. Tax administration works through a structured process beginning with taxpayer registration, TIN issuance, filing of returns, and assessment by Deputy Commissioners of Taxes (DCTs). Individuals and companies file returns annually, supported by financial statements, proof of investment, withholding certificates, and other documentation. Taxpayers may also be subject to audits, inquiries, or penalties for non-compliance. Where disputes arise concerning assessments, penalties, or interpretations of tax provisions, taxpayers have statutory rights to seek remedy through objection, appeal, and judicial review. Bangladesh's tax dispute mechanism is multi-layered. The first level of dispute resolution is filing an objection before the DCT or the Commissioner of Taxes (Appeals). If a taxpayer is aggrieved by the objection outcome, they may appeal before the Income Tax Appellate Tribunal (ITAT) - a specialized appellate authority for income tax matters. Further legal challenges lie before the High Court Division through a Reference Application under the Income-tax Act, and in rare circumstances, appeals may reach the Appellate Division of the Supreme Court. Similarly, VAT and Customs disputes are adjudicated before separate appellate authorities, culminating in judicial review by the higher courts.