No source tax can be deducted from IT freelancing sector: Cenbank
The new circular has been issued as confusion rose about deducting the source tax from the said sector after the central bank's Foreign Exchange Policy Department issued a circular on 27 September.
Authorised dealer banks engaged in foreign exchange transactions cannot deduct source tax from the information technology freelancing sector, the Bangladesh Bank clarified in a circular on Sunday (1 October).
The new circular has been issued as confusion rose about deducting the source tax from the said sector after the central bank's Foreign Exchange Policy Department issued a circular in this regard on 27 September.
"In order to clarify the circular letter No-14 issued by the Foreign Exchange Policy Department on 27 September, it is being informed that no source tax can be deducted from the IT freelancing sector as per clause (2) (a) of section 124 of the Income Tax Act, 2023 and point 21 of part 1 of the sixth schedule," the central bank said in the circular.
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