Summary:

The long-awaited Income Tax Act 2022 will come into effect soon after presenting the draft to the Cabinet along with the proposal of e-Tax Management system.

Content:

The National Board of Revenue has finalized the draft Income Tax Act 2022 which incorporates domestic pricing and anti-avoidance rules as asserted by the Chairman of the NBR, Abu Hena M Rahmatul Muneem.

He also said that the proposed draft law also instructed to follow an audit manual instead of arbitrary selection of tax files, which was not essential under the existing income tax ordinance.

The main benefits of the new tax law being that individual taxpayers will get a refund of their money paid in excess of their due tax directly in their bank accounts.

Other than that, domestic transfer pricing, amortization of pre-commencement expenditures of a business, Earning Striping Rules ( ESR) provision with de-minimis threshold are new provisions of the law.

The new draft law has been classified into 28 parts and six schedules and taxpayers do not need to visit the whole law anymore. Efforts have also been made to present the new law in Bangla and in a straightforward manner.

Moreover, the new law will have provisions to bring global tech giants like Facebook, Google and Microsoft under the corporate-tax coverage, as assured by the Chairman.

Moreover, as assured by an official, a provision of de-minimis as proposed in the draft would allow foreign companies to repatriate up to Tk 1.5 million which will be sent to the associated enterprises of the non-resident companies.

So, the provisions of e-Tax Management has been proposed also in the drafted law which indirectly cut discretionary powers of the taxmen. It also might have direct provision for cutting the power to create a tax-payer-friendly environment.

After passing more than a decade on the process of drafting a new income-tax law, the cabinet instructed the NBR to place the draft on the new law which came in line with a verdict given by the Supreme Court, nullifying the ordinance along with 166 other laws framed during military regimes.

NBR Chairman said the draft will be submitted to the Cabinet for approval next month after taking recommendations from various stakeholders by 25 November.

NBR member, Md. Alamgir Hossain said, “ We made the draft public on our website. People can give their feedback or suggestions to us. We also hope we will get more logical suggestions in the coming stakeholder consultations that will be incorporated into the draft later.”

Picture and article Source : The Financial Express , The Business Insider