News Title : Tax benefits offered to investors, employees in EZs, hi-tech parks

News Date : 2015-10-23

-Moshiur Ahmed Masum
National Board of Revenue (NBR) announced a package of tax benefits for the country's Economic Zones and Hi-Tech Parks recently by issuing number of Statutory Regulatory Orders (SRO) in this regard. According to the SRO, technically-expert foreign employees of Economic Zones and Hi-Tech Parks have availed themselves of tax benefits on their income. They will get 50 per cent income tax exemption for three years from the date of their appointment. The board has also offered several tax and duty benefits to the investors and developers in the zones and parks to 'encourage' both the foreign and local investment. Officials said that foreign employees might misuse such benefit by getting job in another company after finishing job for three years in a company. They said that the NBR wanted to provide tax benefit to the foreign employees in line with the benefits previously given to other sectors, but the law ministry changed the provision while vetting the SRO saying that the foreign employees might not get job just after their arrival in the country. The foreign employees will also have to obtain the online Taxpayer Identification Numbers (eTIN) and submit income tax returns regularly for enjoying the benefit. According to the other SROs, investors in the Economic Zones will get a full tax waiver on their dividend incomes, capital gains from transfer of shares, and tax on payable royalties, technical know-how and technical assistance fees for 10 years from the date of their commercial operation. The investors in Hi-Tech Parks, however, will enjoy 50 per cent tax exemption for 10 years for the above mentioned activities. The NBR also provided complete tax break on dividend income to developers of country's High-Tech Parks for 10 years. The revenue board also offered full exemption from payment of value-added tax (VAT) on procurement providing services and 80 per cent of VAT on electricity bill. For enjoying all these benefits, the developers and investors will have to obtain e-TINs, maintain book of accounts and file income tax returns regularly.

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