The country's corporate taxpayers will have to submit income tax returns in a new format from the current fiscal year (FY), 2019-20, with a mandatory provision of declaration of their international transactions with associate companies.
The National Board of Revenue (NBR), in an instruction, made submission of the information mandatory for corporate taxpayers in the new tax return form.
The NBR income tax (policy) second secretary Md Mazharul Haque Bhuiyan issued the instruction to the tax offices across the country on Wednesday.
Under the existing income tax law, submission of statement of international transactions (SIT) is mandatory for the multi-national companies (MNCs).
Officials said many of the MNCs refrain from submission of SIT, and taxmen could not trace the information by examining their tax returns.
The new tax return form will contain that declaration of international transactions by the MNCs.
In the instruction, the NBR's Income Tax Wing said it has scrapped all the tax return forms, previously issued for the companies.
Until FY 19, the corporate taxpayers had to furnish only their company name, address and total income in the returns. However, they used to attach financial audit report with the returns for other information.
In the new tax return form, the corporate taxpayers will have to furnish their details of sales, gross profit, net profit, depreciation, tax-exempted income, intangible assets, applicable rate of income tax, and other information.
From the current FY, the corporate taxpayers will have to provide basic information from audit report in the new form.
A senior tax official said the NBR has made use of the new tax return form mandatory to get adequate information of the corporate taxpayers through their tax returns.
He also said the board introduced the new tax return form in 2016 for the companies, but its use was not mandatory.
The companies were allowed to submit tax returns in both tax return forms (old and new) until June 30, 2019, he noted.
"The taxmen will not accept corporate tax returns in the previous form from the current FY."
In the new tax return form, the corporate taxpayers will have to furnish the information whether they are liable to submit their respective SIT to the tax authority, he added.
Tax officials said it will be helpful for them to detect non-compliant corporate taxpayers with furnished information in the new format.
Currently, there are some 80,000 companies who have electronic Taxpayer's Identification Number (e-TIN).
According to the Income Tax Wing's collected data, there are 1,000 MNCs, including branch, liaison and representative offices. Of the companies, less than 150 submit SIT to taxmen.
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