Saturday, May 04, 2024
The National Board of Revenue (NBR) has taken a significant step towards enhancing tax compliance in Bangladesh by introducing a programme for income tax return preparers (TRPs).
This marks the first time private individuals will be authorised to assist new taxpayers in filing returns. To implement this initiative, the NBR is now accepting applications from qualified individuals interested in becoming TRPs.
The online application window is open until January 25, 2024. Successful candidates will undergo an examination conducted by the NBR's BCS (Tax) Academy, and upon passing, will be awarded a certificate authorising them to prepare tax returns. Each applicant is required to pay a fee of Tk 1,112.
However, while the application process is underway, the deadline for submitting tax returns for the current year is January 31, 2024. As a result, individuals who obtain their TRP certificates by this date will not be able to prepare returns for this year.
The NBR has clarified this timeline to ensure the programme's smooth launch.
It is important to note that TRPs will not have the authority to collect taxes. Their role is strictly limited to assisting taxpayers in understanding and completing their tax return forms.
The NBR has already published comprehensive guidelines outlining the responsibilities and limitations of TRPs.
According to the NBR guideline, first-time tax return filers will be eligible for a 10 per cent incentive on the minimum tax amount.
For subsequent tax amounts, the programme offers tiered incentives: 2 per cent for the next Tk 15,000, 1 per cent for the following Tk 50,000, and 0.5 per cent for the remaining amount.
This scheme will run for three years initially, with potential reductions in the incentive percentages in years four and five. The incentive percentage is anticipated to decrease in the fourth and fifth years, as indicated in the guideline.
Despite having 93,46,869 TIN holders, only 19 lakh individuals filed returns as of November 27 this year. In FY23, only 35,29,263 of the 90,03,206 TIN holders filed their returns.
The government has set a revenue collection target at Tk 4,30,000 crore for the ongoing FY2023-24. Of which, a Tk 1,54,000 crore revenue target has been set for the income tax wing of NBR.
