Early tax return filers to get 5% rebate under new rules

The National Board of Revenue (NBR) has introduced a new incentive-and-penalty framework for income tax return filing, offering tax rebates to early filers while imposing additional charges on those who submit returns after the prescribed period.

Under the new rules, taxpayers who file their income tax returns during the first quarter of the fiscal year—from July to September—will receive a rebate of 5% of the payable tax or up to Tk 25,000, whichever is lower.

For example, a taxpayer with a tax liability of Tk 100,000 will receive a Tk 5,000 rebate and pay Tk 95,000. Similarly, someone owing Tk 50,000 in tax will receive a Tk 2,500 rebate.

According to NBR data, Bangladesh currently has more than 12.5 million Taxpayer Identification Number (TIN) holders. More than 4.5 million taxpayers submitted their income tax returns online during the last fiscal year.

The new system allows taxpayers to file returns throughout the year. However, whether they receive a rebate or incur an additional payment will depend on when the return is submitted.

Under the revised schedule:
July–September: Taxpayers will receive a rebate of 5% of the payable tax or Tk 25,000, whichever is lower.

October–December: No rebate or penalty will apply, and taxpayers will pay the full amount of tax due.

January–March: An additional payment of 2% of the payable tax or Tk 3,000, whichever is higher, will apply, subject to a maximum surcharge of Tk 3,000.

April–June: Taxpayers will have to pay an additional 5% of the payable tax or Tk 5,000, whichever is higher, with the surcharge capped at Tk 5,000.

For instance, a taxpayer with a payable tax of Tk 100,000 who files a return between January and March will have to pay Tk 102,000. If the return is filed between April and June, the payable amount will increase to Tk 105,000.