Movable, immovable assets cannot be repatriated

Parliament has passed the Finance Bill 2022, scrapping the opportunity given in the proposed budget to bring back movable and immovable assets.

But money launderers have been allowed to bring back only laundered cash by paying a 7 per cent tax as part of amendments to the proposed budget for FY23.

Those not availing the opportunity to bring back laundered cash will be fined. The amount of fine will be equal to the prescribed tax.

Finance Minister AHM Mustafa Kamal announced the amendments in Wednesday’s parliamentary session with Speaker Shirin Sharmin Chaudhury in the chair. The amendments were later passed by voice vote.

The finance minister in his proposed budget speech said, “The proposed rate is 15 per cent for immovable property not repatriated to Bangladesh, 10 per cent for movable property not repatriated to Bangladesh, and 7 per cent for cash and cash equivalents repatriated to Bangladesh. This opportunity will be in force for the period starting from the first day of July 2022 and ending on the thirtieth day of June 2023.”

According to the proposed provision in the budget, no authorities, including the income tax, will raise any question about the source of any asset located abroad if a taxpayer pays tax on that.

In Wednesday’s session, amendments have also been made to corporate tax rates. Companies with annual bank transactions of more than Tk 36 lakh will be able to pay lower corporate tax. In the proposed budget, this limit was Tk 12 lakh per year.

In addition, the obligation to submit tax returns by adding e-TIN to get all services has been waived. Return filing has been made mandatory only for individual taxpayers.