Foreign technicians in EPZs to get tax-exemption facilities
Friday, 29 January 2010
Doulot Akter Mala
The government has decided to re-introduce the tax-exemption facilities for foreign technicians engaged in export processing zones (EPZ) in a bid to encourage foreign direct investment (FDI) and acquire technical know-how.
Income of the foreign technicians will be exempted from income tax for the first three years of their job, said a senior tax official.
"We are going to re-introduce the tax benefit to lure FDI and share technical knowledge with foreign experts," he said.
The government discontinued the facility in fiscal 2008-09 after it found massive abuse of the opportunity, he said.
"The NBR will offer the facility on some conditions to check the abuse of the tax benefit," he added.
The board will issue a Statutory Regulatory Order (SRO) within a short time make the decision effective.
The government is going to offer the facilities only for foreign technicians, not the foreign residents. A number of foreign residents earlier enjoyed the facility illegally, he said.
The NBR will offer the facility to the working nationals of foreign countries that have 'double taxation avoidance agreement' with Bangladesh, he said.
"The country has, so far, signed the agreement with 29 countries. Technicians of those countries will be entitled to enjoy the tax benefit," the official said.
The NBR has taken the move following requests of the Bangladesh Export Processing Zones Authority (BEPZA) as majority of the foreign technicians work in the EPZ areas.
Foreign technicians will have to furnish all necessary information to the NBR and the BEPZA within one year of their job to get the tax-exemption certificate, he added.
Executive chairman of BEPZA Jamil Ahmed Khan recently requested the NBR to simplify the procedure of offering tax benefit for foreign technicians. In a letter, he urged the revenue board to provide the opportunity on the basis of documents submitted in BEPZA office.
The government is committed to provide one stop service to investors, the letter said.
Foreign investors may have negative impression if they are forced to submit same documents to two government entities, he wrote in the letter.
"The BEPZA closely monitors the furnished documents of investors before issuance of work permit and permission for setting up industries," he said.
A five-member work permit standing committee comprising representatives of home ministry, Board of Investment (BoI) with the executive chairman of BEPZA as its head scrutinises all relevant documents before the issuance of work permit, he added.
The government has decided to re-introduce the tax-exemption facilities for foreign technicians engaged in export processing zones (EPZ) in a bid to encourage foreign direct investment (FDI) and acquire technical know-how.
Income of the foreign technicians will be exempted from income tax for the first three years of their job, said a senior tax official.
"We are going to re-introduce the tax benefit to lure FDI and share technical knowledge with foreign experts," he said.
The government discontinued the facility in fiscal 2008-09 after it found massive abuse of the opportunity, he said.
"The NBR will offer the facility on some conditions to check the abuse of the tax benefit," he added.
The board will issue a Statutory Regulatory Order (SRO) within a short time make the decision effective.
The government is going to offer the facilities only for foreign technicians, not the foreign residents. A number of foreign residents earlier enjoyed the facility illegally, he said.
The NBR will offer the facility to the working nationals of foreign countries that have 'double taxation avoidance agreement' with Bangladesh, he said.
"The country has, so far, signed the agreement with 29 countries. Technicians of those countries will be entitled to enjoy the tax benefit," the official said.
The NBR has taken the move following requests of the Bangladesh Export Processing Zones Authority (BEPZA) as majority of the foreign technicians work in the EPZ areas.
Foreign technicians will have to furnish all necessary information to the NBR and the BEPZA within one year of their job to get the tax-exemption certificate, he added.
Executive chairman of BEPZA Jamil Ahmed Khan recently requested the NBR to simplify the procedure of offering tax benefit for foreign technicians. In a letter, he urged the revenue board to provide the opportunity on the basis of documents submitted in BEPZA office.
The government is committed to provide one stop service to investors, the letter said.
Foreign investors may have negative impression if they are forced to submit same documents to two government entities, he wrote in the letter.
"The BEPZA closely monitors the furnished documents of investors before issuance of work permit and permission for setting up industries," he said.
A five-member work permit standing committee comprising representatives of home ministry, Board of Investment (BoI) with the executive chairman of BEPZA as its head scrutinises all relevant documents before the issuance of work permit, he added.