A witness is someone who has direct or indirect knowledge of the commission of an event, while a victim is someone who has suffered physically, mentally, psychologically, or financially as a result of the crime. Crime victims and witnesses are frequently required to testify at trials and other legal proceedings.
Both the Penal Code and the Code of Criminal Procedure lack a definition for the term “victim.” We can, however, define ‘victim’ as a person or persons who, individually or collectively, have suffered physical, emotional, financial, social, or psychological injury as a result of the commission of an offense; in some cases, it also includes the immediate dependants or a member of the direct victim’s family, as well as a person who has suffered harm in intervening to assist the victim in distress or to prevent victimization of the victim.
Witness is defined as any individual, including a child, who is or may be compelled to make a statement or give evidence, or who has made a statement or given evidence, in any investigation or judicial proceedings related to the conduct of an offense.
The victim of a crime plays a crucial role in the administration of criminal justice as both a complainant/informant and a prosecution witness. At both the investigation and trial stages of a case arising from a reported crime, the victim’s participation is crucial. Today, however, these victims are susceptible to threats, intimidation, coercion, and harassment by the offenders or their friends, which prevents them from testifying before the investigating officer during the investigation phase or before the courts and tribunals during the trial phase.
The testimony of a victim during the investigation and trial of a case, particularly when the offense is a crime of violence against women and children, is the strongest evidence that may be utilized against the defendant. As the victim is a crucial participant in the entire criminal justice system, the victim’s rights, privileges, and protection must be given significant consideration.
Victims and witnesses are considered the “heart” of the criminal justice system, and it is difficult to decide an accused’s guilt or innocence without the full cooperation and true testimony of all victims and witnesses.
According to the NGO Naripokka, between 2011 and June 2018, 4372 rape crimes were reported, but only five perpetrators were prosecuted. Due to a lack of witnesses, most of them were acquitted.
In a Gopalgonj murder case, the plaintiffs held a press conference lamenting that the defendant had threatened to abandon the case and that they dread receiving fair justice.
In contemporary society, threats, intimidation, coercion, and pressure from offenders and their associates are now commonplace. This is a flagrant violation of Articles 31 and 32 of our Constitution, which safeguard the “Right to protection of law” and “Right to life and personal liberty.” All of these horrible atrocities occur in our country, but there is no particular “Witness and Victim Protection Act” in place.
Disrespectful and scandalous questions to witnesses
Some sections of the Evidence Act of 1872, such as Sections 151 and 152, restrict disrespectful and scandalous questions to witnesses. However, these are only covered by judicial protection. Section 506 of the Penal Code of 1860 specifies the penalties for criminal intimidation. 1973 International Crime Tribunal Act, section 58(A)(1). Section 14 of the 2012 Act for the Prevention and Suppression of Human Trafficking addresses the protection of witnesses. However, none of these measures adequately protect witnesses and victims.
A High Court Division bench composed of Justices M Enayetur Rahim and Amir Hossain issued an order to the government on December 7, 2015, during the hearing of the “Rinku murder case.” In 2006 and 2011, the Law Commission issued two reports to the law ministry about the protection of witnesses and victims.
A significant provision for the protection of victims and witnesses is included in the Rome Statute. Article 68.1 states that the Court shall take reasonable measures to preserve the safety, physical and mental well-being, dignity, and privacy of victims and witnesses. Article- 32 para-1 and 32 2(b) of the UNCAC emphasizes the protection of witnesses and other individuals from potential reprisal or intimidation in relation to their testimony.
Witness Protection laws in neighbouring countries
Recently, our neighboring nation Nepal enacted the 2018 Crime Victim Protection Act. This Act’s Chapter 2 addresses the rights and responsibilities of victims in the Criminal Justice Process. Right to receive fair treatment (sec-4), right against discrimination (sec-5), right to privacy in certain cases such as rape, incest, human trafficking, and sexual harassment (sec-6), right to information (sec-7,8,9), right to become safe (sec-10), right to remain in a separate chamber during a hearing (sec-14), and right to have property returned (sec-15) (sec-15).
Through the historical judgment of ‘Mahendra Chawla vs Union of India,’ India has also implemented the ‘Witness Protection Scheme, 2018’ where they have implemented rights such as: right to secure waiting place at the time of court proceedings, right to information of the status of the investigation and prosecution of the crime, right to treated with compassion and dignity and respecting privacy, right to protection from harm and intimidation, and right to give evidence without fear of retaliation.
If we compare the Nepalese Act with the Indian Scheme, we see that both apply the same rights for victims and witnesses.
We adhere to the adversarial judicial system in Bangladesh, which is a common law nation. Constitutionally and customarily, the long-established rule is that “everyone is deemed innocent until proven guilty beyond a reasonable doubt.” Article 35(3) of our Constitution outlines the constitutional guarantee and fundamental rights of the accused: “Every person accused of a criminal offense shall have the right to a quick and public trial by an independent and impartial court or tribunal established by law.”
Burden of Proof when it comes to Witness Protection laws
Therefore, the burden of proof generally rests with the prosecution and victims. According to sections 101 to 106 of the Evidence Act of 1872, the burden of proof can be changed, but is initially and exclusively the responsibility of victims and the prosecution. Thus, in a criminal prosecution, criminals have a variety of constitutional and legal rights.
The term “victim” is not defined in either the Penal Code of 1860 or the Code of Criminal Procedure of 1898. In some circumstances, we can define ‘victim’ as a person or persons who have experienced physical, emotional, financial, social, or psychic harm as a result of the commission of a crime. Witness is defined as any individual, including a child, who is or may be compelled to make a statement or give evidence, or who has made a statement or given evidence, in any investigation or judicial proceedings related to the conduct of an offense.
The victim of a crime plays a crucial role in the administration of criminal justice as both a complainant/informant and a prosecution witness. Today, however, these victims are susceptible to threats, intimidation, coercion, and harassment by the offenders or their friends, which prevents them from testifying before the investigating officer during the investigation phase or before the courts and tribunals during the trial phase.
Witness Protection laws and challenge to the existing administration of law and order
The syndicated and organized nature of crime in contemporary society poses a challenge to the existing administration of law and order. Particularly, murder, kidnapping, abduction, rape, human trafficking, acid throwing against women and children, and drugs crimes have expanded significantly and are now well-coordinated. For the sake of achieving justice, it is necessary that the victim be allowed to testify in court or before a tribunal freely and without fear or coercion.
Due to fear, intimidation, and threats from the accused, and the absence of any protection measures, it is a common occurrence in our subordinate court that witnesses do not voluntarily appear in court to provide testimony. As a Magistrate, I have dealt with a large number of instances in which witnesses have complained that the defendant lacked the courage to appear in court.
In August of 2019, a witness’s daughter was gang-raped and murdered in the Patuakhali District after her mother testified against the offenders in the Rape case as a witness. The well-known case of Nusrat Jahan Rafi is likewise emblematic of inadequate victim protection.
Witness Protection laws and when the victim is in the custody:
When the victim is in the custody of law enforcement authorities, the crime is sometimes committed. In this context, it is possible to mention the Yesmin murder case, the Pollobi Police Station case, the Sheema murder case, and the Naraiyonganj seven murder case.
The case of Bogura’s Tupan Chowdhury is another unfortunate example of a lack of protection for victims. According to national newspapers, the victim was persuaded to compromise the high-stakes case of rape and torture in exchange for Tk 40 lac.
The Police Bureau of Investigation (PBI) completed a study and released a report on the country’s dacoity incidents in July of 2019. According to PBI’s analysis, 50% of dacoity trials failed in court due to hostile witnesses. In the past decade, the Narcotics Control Department confessed that 48.45% of cases were dismissed and the accused was acquitted due to the testimony of witnesses.
In a few recent cases, the High Court Division (HCD) has ordered the formation of a monitoring cell and monitoring committee to ensure the presentation of witnesses in the courts, particularly in the Women and Children Repression Prevention Tribunal cases. The HCD stated that the government will take the necessary steps to enact legislation protecting victims and witnesses.
Statistics and Witness Protection laws in Bangladesh:
From 2002 to 2016, the daily Prothom Alo undertook an exhaustive study of the cases heard by the Women and Children Repression Prevention Tribunals of Dhaka. In the research done, there were a total of 7864 incidents, 2604 of which were rape, gang rape, or homicide following rape.
According to the study, only 3% of cases resulted in a conviction for the accused. They claimed that 55% of cases were dismissed for lack of proper and adequate witnesses. Moreover, the defendant was acquitted solely because of witnesses. It is regrettable that our Law Commission filed a report recommending the enactment of the concerned law, after submitting drafts of the proposed Act in 2006 and 2011.
There are only a few statutes in our judicial system that guarantee protection for victims and witnesses. The 2013 Prevention of Torture and Custodial Death Act is one of the best laws. It provides comprehensive protection when in the custody of a law enforcement agency or governing body.
The Women and Children Repression Prevention Act of 2000
The Women and Children Repression Prevention Act of 2000 is another statute. Sections 9 (5) and 14 address the victim’s interest and protection. Section 14 of the Prevention of Human Trafficking Act-2012 makes it a separate offense to threaten or intimidate a victim or witness, as well as to obstruct the investigation or trial of a crime, with a maximum penalty of seven years.
Parliament passed a new Children Act in 2013 that thoroughly addresses the protection and legal rights of children in accordance with international standards. The International Crimes Tribunal Rules of Procedure, 2010, has an unique provision 58A that addresses the protection of witnesses and victims. Bangladesh’s accomplishment in ensuring the conviction of war criminals after nearly 40 years of independence is attributable to the country’s creative legislation.
Numerous nations have implemented a law protecting victims and witnesses, including the United States in 1982, the United Kingdom in 1999, Australia in 1994, Hong Kong in 2000, Colombia in 1997, Germany in 1998, South Africa in 1998, Italy in 2001, Pakistan in 2017, and Sri Lanka in 2015. India has taken the initiative to create legislation and develop “The Witness Protection Scheme 2018”, and the Delhi Provincial Government enacted legislation in 2015.
Moreover, on the advice of its Supreme Court, India enacted in 2018 “the Compensation Scheme for Women Victims/Survivors of Sexual Assault/other Crimes.” Even in many Indian states, there are victim compensation programs. In 2008, the United Nations on the Drug Convention created a standard approach for witness protection. The 1985 UN Declaration on Basic Principles of Justice for Victims of Crime and Abuse of Power is also a landmark in the creation of such legislation.
On February 24, 2021, Children Charity Bangladesh (CCB) filed a writ case with the HCD asking to develop laws and a plan for the protection and compensation of victims of rape and sexual assault. In 2018, India’s Supreme Court devised a national plan to guarantee compensation for victims, which is an interesting development. In conclusion, I would assert that a comprehensive victim and witness protection law is urgently required in the current climate. The objective should be to safeguard victims and witnesses by granting them specific rights and privileges to ensure their appearance before investigating bodies and courts or tribunals to testify about the alleged crime without fear of intimidation or threat from the accused.
Defence and witness protection in Bangladesh:
As witnesses always have a realistic fear of being harmed by the defense, the free and truthful involvement of witnesses to testify before the court is primarily dependent on the protective and security measures supplied by the concerned court in any crimes tribunals. Since 2010, when Bangladesh began to prosecute war criminals, the security of witnesses has become a crucial issue that must be resolved through applicable state instruments and international experiences. In this regard, we shall examine the provisions for victim and witness protection in other international and hybrid tribunals, as well as the International Crimes (Tribunals) Act of 1973, which can be referred to as a subsequent edition of the proposed law on victim and witness protection.
The protection and assistance provisions for witnesses and victims in international and hybrid criminal tribunals. The Statutes of the Extraordinary Chambers in the Courts of Cambodia (ECCC), the International Criminal Court (ICC), the International Criminal Tribunal for Rwanda (ICTR), the International Tribunal for the former Yugoslavia (ICTY), the Special Court for Sierra Leone (SCSL), and the Special Tribunal for Lebanon (STL) included provisions for victims and witness protection where the Rules of Procedure and Evidence included policies to implement those provisions of the statute.
International Criminal Court and witness protection in Bangladesh:
Article 68 of the Rome Statute of the International Criminal Court, for instance, states that “the Chambers of the Court may, to protect victims and witnesses or an accused, conduct any part of the proceedings in camera or permit the presentation of evidence by electronic or other special means,” noting that these measures should be implemented in the case of a victim of sexual violence in particular. Specifically, Rule 72, Rule 87, and Rule 88 of the Rules of Procedure and Evidence apply this statutory provision respecting in camera procedures.
These regulations govern, among other things, the appropriate use of in camera proceedings in accordance with the statute. In addition, they outline the in camera procedure for determining the relevance or admissibility of evidence related to consent in suspected crimes of sexual violence, as well as the precise procedures for requesting in camera proceedings and other available measures, including notice requirements.
All legislation contain provisions providing victim and witness protection and using clear language tying these protective measures to the accused’s right to a fair trial. For instance, the language of the statute may provide that the measures cannot be detrimental or conflicting with the rights of the accused.
A summary of victim and witness protection measures in various statutes and rules of procedure and evidence ECCC strategy: It addresses a fairly wide direction that procedures must respect the rights of victims and the accused, and that the Court must take steps to protect victims and witnesses. (See Article 33 and Rules 12, 24, 25, 29, and 60 in particular)
Approach of the ICTY and ICTR: It contains a directive that procedures must respect the rights of victims and the accused, and that the Court must take precautions to safeguard victims and witnesses. Inclusion of explicit provisions for victim and witness protection in the Rules of Procedure and Evidence adopted by the courts. (See notably Articles 14, 19, and especially Article 21 of the ICTR legislation, Articles 15, 20, and especially Article 22 of the ICTY statute, and Rules 34, 53, 69, 70, 75, 77, and 79, ICTR and ICTY)
It grants the accused the right to a fair and public trial, subject to witness protection procedures. It also provides for the formation of a Victim and Witness Protection Unit. It further says that employment of prosecutors and investigators with experience in gender-related offences should be considered. (See in particular Articles 15, 16, and 17 of the Act as well as Rules 34, 69, 70, 75, and 79)
It grants the accused the right to a fair and public hearing, subject to witness protection procedures. It provides for the formation of a Victim and Witness Unit that offers protective services and allows victims to participate in legal procedures. It gives access to compensation for victims. It further stipulates that victim involvement and protective measures for victims and witnesses must be incorporated into the Rules of Procedure and Evidence issued by the courts. (See in particular Articles 12, 16, 17, 25, and 28 of the Act as well as Rules 50, 51, 52, 93, 116, 133, 137, 139, 159, and 166).
It contains extensive statutory provisions establishing the Victim and Witness Unit and defining the victim and witness protection obligations of the Prosecutor, pre-trial chamber, and trial chamber, which provide protective measures in cases of sexual violence. Includes particular safeguards for the protection of victims involved in help requests. (See specifically Articles 43, 53, 54, 57, 64, 75, 79, 87, and Article 68 of the Act as well as Rules 16, 17, 18, 19, 43, 72, 76, 81, 87, 88, and 112)
International Crimes (Tribunals) in Bangladesh:
Though the 1973 Act contains no provisions for witness and victim protection, the Rules of Procedure were amended in June 2011 to define the term “Victim” as “a person who has suffered harm as a result of the commission of the crimes specified in section 3(2) of the International Crimes (Tribunals) Act, 1973.” In addition, under the new Chapter VIA, a new Rule 58 A(1) on Witness and Victim Protection has been added, which states, “The Tribunal on its own initiative, or at the request of either party, may pass necessary orders directing the concerned authorities of the government to ensure the protection, privacy, and well-being of the witnesses and or victims.” This procedure will be confidential, and the opposing party will not be informed.” Subrule 02 was amended by the addition of provisions for the lodging of witnesses or victims, as well as other measures relating to a trial in camera and the maintenance of confidentiality, if a violation of such an undertaking is to be prosecuted under section 11(4) of the Act.
The effectiveness of these protective measures has yet to be demonstrated, particularly in regards to sexual violence witnesses. In addition to holding the trial in camera, the Tribunal should take further protective measures to encourage more witnesses to testify.
The proposed national law on victim and witness protection addresses numerous significant needs of members of this vulnerable group and recognizes the importance of support mechanisms that address the physical, psychological, and economic well-being of victims and witnesses who will testify before the court. In contrast to international and hybrid criminal tribunals, the proposed legislation does not contain complete provisions. Consequently, if we wish to secure the safety and security of witnesses of any crime in the future, we must adopt specific standards from international and hybrid tribunals that are consistent with and applicable to Bangladesh’s current socioeconomic environment.
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People frequently state, “I am too young to prepare a Will” or “I have nothing to leave behind.” Traditionally, young adults have not prioritized the creation of a will. This is altering; in 2021, 23% more young adults from Generation Z created a will.
After the recent pandemic, it is logical that opinions on mortality have altered. People may have accepted the inevitability of the future. Everyone is responsible for organizing their affairs to protect their loved ones in the future.
A will is a legal document that expresses a person’s desires about the disposition of his possessions after his death. Unlike a Trust, which becomes effective immediately upon creation, a Will only becomes executable upon the death of its creator. The person who creates a will is referred to as the “Testator,” while the person selected to carry out the will is called the “Executor.” A “legatee” is the recipient of a will’s assets.
How to make a will in Bangladesh
In Bangladesh, wills are governed by a mixture of legislative and religious guidelines. The Succession Act of 1925 governs wills in Bangladesh generally. In contrast, the Muslim Personal Laws on this topic are more widespread in this country due to the flexibility of criteria and desire of the majority. In Islam, executing a will or (Wassiyyah) is one of four required rites performed for the departed.
A Muslim may only bequeath one-third of his property through a bequest. The testator’s intent must be evident that the wasiyyah will be carried out after his death.
According to the 1925 Act and Muslim personal law, a will can only be revoked if the testator creates a second will.
Both sets of rules regulating wills are necessary for their legal execution. There are numerous parallels and differences between the two. The legislation exists in harmony and is in effect, albeit with undetermined limitations.
1) Ensure your children’s well-being.
A Guardian is the individual (or individuals) you name in your Will to care for and raise your minor children in the case of your death. You can only appoint a Guardian if you are the legal parent of a child. Appointing a Guardian results in the Guardian acquiring parental responsibility for the kid at the time of appointment, i.e., upon your passing. A Guardian has the authority to make all significant decisions about the upbringing, education, and welfare of the kid. You can also include instructions for the upbringing of your children in your Will.
2) Appoint the individual or individuals of your choosing to manage your estate.
You will name an Executor in your Will to manage your estate. Executors might be family members, close friends, or professionals. An Executor is the individual you name in your Will to administer your estate and distribute your assets according to the terms of your Will. You can appoint one or more executors.
3) Make a will to Safeguard your Partner
In today’s culture, living together as “co-habitees” rather than getting married is becoming increasingly frequent. However, many cohabitants mistakenly believe they have the same legal protections as married or civil partnership couples. This is not the case, and there is little protection for unmarried couples. Upon the demise of a partner, a number of problems can develop. If an unmarried individual dies without a Will, their assets will pass to their children, parents, siblings, or other family members, potentially causing anguish to a surviving spouse. Cohabitants should always have a valid Will that allows them to prepare for the future and the unforeseen.
4) Make a will to Protect your personal information online
It is likely that you have vital data online, such as in an email account or social media profile. A correctly crafted Will can enable your Executors to access your internet information, which, in the absence of a Will, your family may have to legally access through the Court system.
5) Protect your inheritance for the future
Although you may not possess much now, you may receive an inheritance in the future. A Will addresses property you have not yet acquired. A properly designed Will can account for changes in the value of your estate and specifies how you would wish your assets to be distributed upon your death. Wills and Testaments It is extremely advised that you create a Last Will and Testament.
Transfer of Property by a Last Will and Testament in Bangladesh:
TRANSFER from the dead to the living has two sides: (i) Testamentary Succession (ii) Intestate Succession.
During marz-al-maut, testamentary successions under Muslim law are (a) Will and (b) Gift. The Islamic law of testamentary succession governs this. The main criteria of a will are that I it takes effect only after the testator’s death, ii) no donation may exceed one-third of the estate, and iii) no bequest may be made to an heir. In Muslim law, a Will can be verbal. It does not have to be reduced to writing. Will registration is not required. The content of a Will can be altered at any moment by its author.
Gift during marz-al-maut contains all the basic requirements of gift intra-vivos, including:
(1) Offer from the donor,
(2) Acceptance from the donee, and
(3) Immediate transfer of possession. It is also subject to all limits outlined in the law of will,
including: (1) It takes effect after the death of the donor, (2) It cannot be provided to an heir, and (3) It cannot exceed one-third of the property. In accordance with Hindu law, after the demise of the testator, the District Judge must grant probate for the will’s execution.
How to make a Will under Hindu Law:
To make a will under Hindu law, any adult may dispose of his property by will, provided that he does not violate his wife’s or anybody else’s legal claim to maintenance. A Hindu may dispose of his distinct or independently acquired property through a will. Currently, Hindu wills are controlled under the Succession Act of 1925. Every Hindu will must be in writing, signed by the testator, and attested by at least two witnesses, in accordance with section 63 of the Succession Act of 1925.
Intestate succession:
In Bangladesh, the Muslim law of intestate succession is governed by the Hanafi law of inheritance, whereas the Hindu law of intestate succession is governed by the Dayabhaga School of Inheritance. In Hanafi inheritance law, there are three classes of heirs:
a. Sharers, who are entitled to a prescribed share of the inheritance;
b. residuaries, who take no prescribed share but succeed to the remainder after the claims of the sharers are satisfied; and c. distant Kindred, who are all blood relatives who are neither sharers nor residuaries.
The Dayabhaga Law of inheritance under Hindu law recognizes three groups of heirs: (a) Sapindas, (b) Sakulyas, and (c) Samonodakas.
According to section 2(h) of the Succession Act 1925, a will is “the legal declaration of a testator’s intentions regarding his property that he wishes to be carried out after his death.” According to the Sahih Al-Bukhari, a Muslim who has something to bequeath is obligated to make a will within two nights after acquiring it.
According to section 59 of the Act, every adult who is not a juvenile may dispose of his property through a will. Under section 3 of the Majority Act of 1875, an individual attains adulthood at the age of eighteen in Bangladesh. In accordance with the Succession Act, anyone above the age of eighteen may make a will. Under Islamic law, however, an adult who has achieved the age of fifteen may also establish a will.
Make a will under Succession Act:
In accordance with Section 63 of the Succession Act, to make a will, it must be in writing, signed by the testator, and witnessed by at least two individuals. Under Muslim personal law, however, a will may be either oral or written, and a written will need not be signed or witnessed if it is signed. In Muslim law, however, the need of two witnesses is the same as in the preceding section.
Probate is obtained to confirm the will’s validity, and it is the sole valid proof of the executor’s appointment. In accordance with section 227 of the 1925 Act, when a judge grants probate for a will, all executor actions become legitimate. The executor must file a probate action with the District Judge Court in order for the will to take effect. However, under Islamic law, such conditions do not exist.
Therefore, if you were to make a will there are numerous sorts of transfers of real property. Some transfers are between live individuals, while others are between deceased and living individuals. There is an urgent need for a centralized administrative agency to govern all types of real estate transfers. In addition, a comprehensive law should be enacted to control the transfer of all types of immovable property. The Transfer of Property Act of 1882 is incomplete.
It does not address the transfer from the dead to the living. Currently, transferees’ rights are most usually restricted. Therefore, there should be explicit legal safeguards protecting the rights and interests of the transferee or land purchaser. Modern society and circumstances have become increasingly complex; consequently, it is preferable that all transfers of immovable property be documented and recorded.
It is unpleasant to contemplate one’s own demise. Nevertheless, you should prepare your estate in advance so that your affairs are in order in the terrible case of your dying. The last thing you want to do during this time is cause further stress for your family. Your property in Bangladesh has value once you sign the contract and make the initial payment; therefore, you will have an asset to consider for estate planning even before the property is transferred.
It is prudent to periodically examine your Will throughout your life to ensure that it still reflects your wishes, especially in light of any changes to your family, such as births, deaths, or weddings. The Wills, Trusts & Probate team at Tahmidur Rahman Remura Wahid welcomes your call at 01779127165 or 01847220062 if you would like more information about Wills or would like to schedule an appointment to discuss your specific situation.
While making a will in Bangladesh, our organisation offers legal services for drafting a Wasiotnama, also known as a Bangladeshi Will. The paperwork will list your assets in Bangladesh, such as real estate, bank accounts, and vehicles. Upon the death of a foreigner in Bangladesh or a Bangladeshi in a foreign country, the government officer will typically request a copy of the deceased’s Will from the family or the deceased’s attorney.
If you are unaware of your legal rights in Bangladesh, there are a number of things that can occur to your property. If certain measures are not taken from the outset, the entire procedure can become highly convoluted and often rather expensive. The reduction of risk and the protection of your investment are of paramount importance in any real estate acquisition.
This is especially more critical when purchasing homes outside of your home jurisdiction, when communication can be a significant obstacle to achieving your goals. A valid will mitigates the majority of the risk. It is always prudent to obtain professional counsel from a reliable expert who looks out for your best interests and understands your requirements.
Are you intending to make a will in Bangladesh?
Make a will in Bangladesh with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
Real Estate and Developer laws in Bangladesh : Rights and Liabilities:
The construction industry contributes significantly to the growth of our GDP. Co-developing land with a development business has proven extremely lucrative for urban landowners. This not only produces a substantial amount of revenue up front for landowners, but also allows them to develop the area without expending any money.
Due to the appeal of the actual contractual agreement, landowners sometimes neglect to conduct due diligence on the developer businesses, while new developer companies, in an effort to generate a rapid profit, also neglect to conduct due diligence on landowners.
Normally, the developer company reach an arrangement with the landowner who was willing to transfer building rights to the Real Estate Developer Company. In this area of Real Estate and Developer laws in Bangladesh, a number of contracts are established between landowners and real estate developers, regardless of whether they adhere to the Contract Act of 1872 or other pertinent legislation enacted by the government of Bangladesh for this subject. Without sufficient legal knowledge, landowners unknowingly encountered numerous challenges. Also, the number of disputes between the parties increases.
The government enacted the Real Estate Development and Management Act in 2010 to protect the interests of landowners against developers. In addition, the government has lately issued circulars mandating that developer companies receive REHAB registration, so insuring a particular level of quality and standard as per Developer laws in Bangladesh.
There are numerous Real Estate Developer Companies in Bangladesh that have constructed structures on landowners’ property with their approval. As a result, parties are entering into contracts to complete the necessary legal requirements. Disputes can emerge between the real estate developer and the landowner on their respective rights and liabilities.
Before entering into any kind of formal agreements, all parties must be informed of the applicable law pertaining to their respective responsibilities. This paper will examine the rights and responsibilities of the landowner and real estate developer vis-à-vis one another in light of the applicable laws, rules, and regulations in Bangladesh.
Real Estate and Developer laws in Bangladesh in 2023:
The Constitution of Bangladesh; the Contract Act of 1872;
the Real Estate Development and Management Act of 2010;
the Real Estate Development and Management Regulation of 2011;
the Specific Relief Act of 1877; the Arbitration Act of 2001;
the Transfer of Property Act of 1882; the Registration Act of 1908;
the Land Development for Private Residential Projects Rules of 2004;
the Building Construction Act of 1952; the Building Construction Rules of 1996;
the Town Improvement Act of 1953; the Private Residential Project Land Development Act of 1953; and
the Private Residential Project Land Development Partnership-based Infrastructure Development (Flat Construction) on Public Land Rules, 2008; Bangladesh National Building Code, 2006; Trade Organizations Ordinance, 1961; etc.
Real Estate and Developer laws in Bangladesh and the structure:
According to this Act, “Real Estate” refers to land-based property established or developed for sale and purchase in the following real forms: residential, organizational, commercial plot, apartment flat, organizational, or mixed floor space. This Act applies only to private or mixed ventures, i.e. undertakings done by the landowner or developer on their own land, excluding government activities. In the case of joint venture assignments between the government and private development businesses, however, the following rule applies.
Essentials to know for Developer firms :
In order to publish advertisements in public media for the sale of any real estate, developer companies are required to include the following information: registration number, sanction number of the authorized plan with memo numbers, dates of such grants, etc. in their published prospectus or advertisements. It should be noted that landowners and developers do not have the power to commence or conduct construction work prior to securing design, allocation, and other required licenses from the relevant government entity.
Legal responsibilities of the landowner and real estate developer:
According to the laws of this country, the parties to the agreement must first understand their rights and responsibilities in order to conduct and finish all legal procedures amicably and without argument or difficulty. However, if a dispute arises, the parties to the contract, such as the landowner, developer company, etc., have the option of resolving the disputed issues amicably; if this is not possible, they have the option of resolving the dispute through arbitration; in this case, the decision of the arbitration tribunal is binding on the parties.
Rights and responsibilities of the Property Owner:
Transfer of the required documents:
The landowner has the right to get all required property documents from the developer company, and is obligated to submit all required documents to the developer company in accordance with the agreement and the laws of the nation. Additionally, the landowner must sign the power of attorney in favor of the developer business.
Damages in the event of a delay:
In accordance with the REHAB code of conduct, the landowner and the developer business must form a mutual agreement that entitles the landowner to rental compensation that will be paid on a monthly basis by the developer company in the event of a developer delay.
Transfer of ownership:
According to the provisions of the contract, the landowner must transfer possession of the land to the developer business for the purpose of its development. In addition, upon completion of the real estate development, the corporation is obligated to transfer ownership of the designated share of the property to the landowner.
Punishment for tardiness:
According to Bangladesh’s Real Estate Development and Management Act, if a landowner delays the handover of possession of a property or cancels a power of attorney executed in the name of a developer company without giving 30 days’ prior notice, he or she will be subject to a maximum fine of BDT 10 lacs and/or two years in prison. Alternatively, if the developer firm is responsible for the delay in handing over possession, the landowner is legally entitled to compensation under the terms of the agreement and the laws of this country.
Legal right to sue the developer and Real Estate and Developer laws in Bangladesh:
Depending on the circumstances, if a real estate dispute arises between the landowner and the developer company, the aggrieved landowner may file a suit for specific performance of the contract against the developer company for various matters done in breach of contract, such as continuous delay in development of the land, possession of the allotted property, etc. (Real Estate and Developer laws in Bangladesh)
In addition, the landowner may submit a writ under the Constitution in order to get the desired remedy if no other equally effective remedy is available under the law of this country.
Rights and responsibilities of the Developer:
Formation, enrollment, and membership for Developer laws in Bangladesh:
First and foremost, all developer companies are required to be formed and registered with the relevant government authorities, i.e. RJSC etc., in order to conduct business in Bangladesh; failure to do so would result in imprisonment of two years or a fine of ten lacs BDT, or both. If a developer begins work on a real estate project without authorisation from the proper authorities, the punishment is the same as previously stated. In order to be recognized as legally valid in Bangladesh, developer businesses must also obtain membership from the proper authorities, such as REHAB.
Transfer of the required documents for Developer laws in Bangladesh:
In accordance with the terms of the agreement, the developer must give the necessary documentation to the landowner and purchasers at the time of turning over the portion of the property ensuring other services and advantages, such as parking, telephone, water, and gas. Similarly, the landowner is required to supply the developer with the essential paperwork for the development of the land. In addition, the development business is required to deliver the property’s deeds, including the sale deed, registration, etc., to the buyer within three months after the buyer’s payment.
Carrying out deeds and Developer laws in Bangladesh:
If no power of attorney was executed by the landowner in favor of the developer company for the purpose of executing sale deed and completing registration in favor of the purchaser of the developer’s portion of the property, then the landowner is required to execute the deed in favour of the purchaser within 15 days of receiving written notice from the developer company. Nonetheless, if the landowner fails to comply with the aforementioned notice, the developer firm will be allowed to finish the sale deed as if it were the landowner and will also be able to complete the registration.
Repair and upkeep obligations and Developer laws in Bangladesh:
It should be noted that if repairs are necessary due to construction problems after handover, the developer will pay for the repairs for at least two years from the date of handover. In addition, according to the conditions of the agreement between the parties, each developer must maintain the property for at least one year following the transfer.
Transfer of ownership:
The landowner must surrender possession of the property (land, etc.) to the developer business in order for the estate to be developed. Similarly, the developer company is obligated to transfer possession of the allotted portion of the real estate, i.e. apartment, plot of land, etc., to the landowner(s) within the time agreed upon in the deed of agreement between the developer company and the landowner(s) in accordance with the Real estate development and management Act of this country.
In the event of a delay in handing over possession to the landowner, the developer company is obligated to pay rental compensation in accordance with the agreement between the developer company and the landowner, with the following exceptions: natural disaster, political unrest, unusual rise in prices of building materials, delay in obtaining utility connection from the appropriate authority, or other force majeure.
Consequences for the developer business for specific actions:
If the developer business mortgages real estate without the buyer’s approval, it will risk imprisonment for one year or a fine of up to five lakhs Bangladeshi taka, or both.
In addition, if the real estate company uses substandard materials or if the proper quality and quantity of materials are not used for construction, or if the real estate construction was made outside of the approved design, or if the real estate was not sold to the owner without his knowledge as promised, then the developer company is subject to imprisonment for a term not to exceed three years or a fine not to exceed twenty lakhs, or both.
In addition, in the event of a breach of contract between the developer company and the landowner for the following, i.e. intentional delay of development work without payment of compensation, refusal to hand over the property, etc., the developer company will be subject to the following penalties, i.e. a fine not exceeding BDT twenty lacs and/or two years in prison, etc.
Moreover, if the services or facilities, i.e. water, gas, electricity, etc., promised in the prospectus by the developer company during the handover of the portion of the property, i.e. flat, etc., were not provided, the developer company would be subject to a fine of less than BDT 5 lakh and imprisonment for less than one year.
Right to file a lawsuit against a property owner:
According to the rules in effect in this country, as a legal person, the developer business has the right to launch a lawsuit against the landowner if it is the aggrieved party in any real estate issue and Developer laws in Bangladesh.
We will attempt to provide useful information for landowners who enter into a building contract with a real estate developer company as per Developer laws in Bangladesh.
The Joint Venture Agreement is typically the first document signed between the Landowner and the Developer following protracted negotiations. This Agreement stipulates the Developer’s and Landlord’s share percentages, the timetable, the advance payable, and the penalties for delays. The Landowner is obligated to sign and execute this Agreement under section 10 of The Real Estate Development and Management Act of 2010. It is not required by law to register this Agreement.
Power of Attorney:
Section 10 of the Real Estate Development and Management Act of 2010 mandates that the Landowner complete a Power of Attorney in favor of the Developer. This will enable the Developer to submit an application to RAJUK/ CDA for approval of the layout plan, execute sale agreements with third-party purchasers, and do other required tasks.
The contract between the landowner and the real estate developer must comply with section 10 of the Contract Act of 1872, which addresses the essential elements of a valid contract.
Written contract:
The transfer of land to a real estate developer must be documented in writing with mutual consent from parties that are legally able to contract under the Contract Act of 1872 and have no fraudulent intent. The contract must contain the terms and conditions of the agreement. Add to the contract the consequences for contract violation.
5. Real Estate Development and Management Act of 2010,:
According to section 15 of the Real Estate Development and Management Act of 2010, the transfer has been delayed. In the event of a delay in the handover of the assigned portion of the apartment/plot of land, the landowner is entitled to compensation as stipulated in the deed of agreement between the land developer and land owner. Also, the landowner will be entitled to rental compensation in accordance with a mutually agreed-upon, written contract.
Delay by Landowner –
Pursuant to Section 28 of the same Act, if the Landowner fails to hand over possession of the land to the developer in accordance with the terms of the contract, the Landowner shall be subject to a fine of up to Tk. 10 lacs and/or imprisonment for up to 2 years. Also in accordance with Section 29 of Chapter 36 of the Real Estate Development and Management Act of 2010, the Landowner will be subject to a fine and/or jail if he revokes the Power of Attorney executed in favor of the Developer without giving 30 days’ notice.
Dispute Resolution:
According to section 36 of The Real Estate Development and Management Act of 2010, in the event of a problem between a landowner and a developer, the parties will make an initial attempt to resolve the dispute amicably. Nonetheless, if such an endeavor fails, the 2001 Arbitration Act shall control the resolution of the dispute.
Transfer of due portion as per Developer laws in Bangladesh,:
According to section 30 of The Real Estate Development and Management Act, 2010, if a land developer fails to transfer the possession of the due portion of real estate to the land owner in accordance with the terms of the contract between the land developer and the land owner, the land developer shall be punished by imprisonment for a period not to exceed two years or a fine of Tk 2,000,000 or both.
The landowner may initiate a suit for specific performance of contract under the Specific Relief Act 1877 against the developer business in order to obtain ownership of the allotted apartment/plot of land. The landowner may submit a writ against the Ministry of Commerce under Article 102 of the Constitution, with the registering authority of the developer company and the developer firm as additional respondents.
Both landowners and developers should discuss the provisions of the developer agreement with care to prevent future disputes. Special consideration must be paid to the potential delay and handover of such projects, since the developers may incur criminal liability. Also, landowners should be wary of proposals that are excessively profitable compared to market rates.
Are you intending to get into real estate scene in Bangladesh or wants to know more about Developer laws in Bangladesh?
Get Your legal issues related to Developer laws in Bangladesh sorted out with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in regards to Developer laws in Bangladesh. For queries or legal assistance, please reach us at:
Capital Market mostly refers to the country’s stock and share market. When the banking system cannot fully satisfy the market economy’s need for funds, the capital market steps in to complement it.
Through the capital market, corporations and governments can raise funding for long-term investments. Capital market consists of the stock market, bond market, and primary market.
The government monitors securities trading on organized capital markets; new issuance are approved by authorities of financial supervision and supervised by participating institutions. Thus, structured financial markets can guarantee investment opportunities that are sound.
Bangladesh’s capital market is among the smallest in Asia, but ranks third in South Asia. Capital Market in Bangladesh has two fully automated stock markets, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), as well as an over-the-counter exchange run by CSE.
Characteristics of the Capital Market in Bangladesh:
Link between Investors and Investment Opportunities: The capital market is an integral part of the saving and investing process. The capital market moves funds from savers to business borrowers.
The capital market offers funds for long-term and medium-term investments. It does not address saving for periods of less than one year.
Steps to an Initial Public Offering for Capital Market in Bangladesh:
Proposals:
Underwriters submit proposals and valuations that describe their services, the optimal form of security to issue, the offering price, the number of shares, and the projected duration of the market offering. Underwriter. Through an underwriting agreement, the corporation selects its underwriters and formally agrees to underwriting terms. Team. Underwriters, attorneys, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) expertise comprise IPO teams. Documentation. The company’s information is prepared for mandatory IPO papers. The S-1 Registration Statement is the principal filing document for an initial public offering. There are two components: the prospectus and the private filing information.
The S-1 contains preliminary information regarding the anticipated filing date.
It will undergo several revisions during the pre-IPO process. The included prospectus is also regularly amended.
Marketing & Updates for Capital Market in Bangladesh:
The creation of marketing materials for the pre-marketing of the newly issued shares. Executives and underwriters promote the share issuance to evaluate demand and determine the ultimate offering price. Throughout the marketing procedure, underwriters are able to modify their financial analyses. This may involve modifying the IPO price or date of issuance as they deem suitable. Companies take the necessary steps to meet certain standards for public share offerings. Both exchange listing criteria and SEC standards for public corporations must be met.
Board and Operations. Establish a board of directors and quarterly reporting procedures for auditable financial and accounting data. Stocks Issued The company’s shares are issued on its IPO day. The cash collected from the main issuance to shareholders is reported as stockholders’ equity on the balance sheet. Consequently, the balance sheet share value is based on the complete valuation of stockholders’ equity per share.
Some post-IPO provisions could be implemented. After the day of the initial public offering (IPO), underwriters may have a limited period of time to acquire more shares. Meanwhile, certain investors may experience periods of inactivity.
Positives and Negatives of an IPO An IPO’s principal purpose is to raise funds for a company. It may also have additional advantages and downsides.
The corporation has access to investments from the entire investing public, which is one of the primary benefits. This improves the company’s exposure, prestige, and public image, which can boost sales and profitability.
Increased openness resulting from quarterly reporting requirements can typically help a firm obtain more favorable loan conditions than a private company.
Intermediates:
The capital market utilizes many intermediaries, including brokers, underwriters, depositories, etc. These intermediaries serve as the capital market’s working organs and are vital components of the capital market. The operations of the capital market determine the capital formation rate in an economy.
The capital market offers appealing options to those with excess funds, encouraging them to participate more in the market and save more for profitable prospects.
Government Regulations and Statutes:
The capital market is unfettered but governed by government policy. These markets operate within the framework of government rules and regulations; for example, the stock exchange is governed by the government agency SEBI.
The (instruments) of Capital Market in Bangladesh include:
The capital market is the market for securities on which corporations and governments can raise long-term capital. The Capital Market is the portion of the financial system concerned with raising capital through the trading of stocks, bonds, and other long-term assets. Capital market is the market where investment products such as bonds, stocks, and mortgages are traded.
Steps to an Initial Public Offering in Bangladesh:
Proposals. Underwriters submit proposals and valuations that describe their services, the optimal form of security to issue, the offering price, the number of shares, and the projected duration of the market offering. Underwriter. Through an underwriting agreement, the corporation selects its underwriters and formally agrees to underwriting terms.
Team of TRW for Initial Public Offering in Bangladesh: Underwriters, attorneys, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) expertise comprise IPO teams.
Documentation for a Capital Market in Bangladesh for Initial Public Offering in Bangladesh:
The company’s information is prepared for mandatory IPO papers.
Marketing & Updates. The creation of marketing materials for the pre-marketing of the newly issued shares. Executives and underwriters promote the share issuance to evaluate demand and determine the ultimate offering price. Throughout the marketing procedure, underwriters are able to modify their financial analyses. This may involve modifying the IPO price or date of issuance as they deem suitable. Companies take the necessary steps to meet certain standards for public share offerings. Both exchange listing criteria and SEC standards for public corporations must be met.
Board and Operations:
Establish a board of directors and quarterly reporting procedures for auditable financial and accounting data. Stocks Issued The company’s shares are issued on its IPO day. The cash collected from the main issuance to shareholders is reported as stockholders’ equity on the balance sheet. Consequently, the balance sheet share value is based on the complete valuation of stockholders’ equity per share.
Some post-IPO provisions could be implemented. After the day of the initial public offering (IPO), underwriters may have a limited period of time to acquire more shares. Meanwhile, certain investors may experience periods of inactivity.
Steps to an Initial Public Offering in Bangladesh:
Proposals. Underwriters submit proposals and valuations that describe their services, the optimal form of security to issue, the offering price, the number of shares, and the projected duration of the market offering. Underwriter. Through an underwriting agreement, the corporation selects its underwriters and formally agrees to underwriting terms. Team. Underwriters, attorneys, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) expertise comprise IPO teams. Documentation. The company’s information is prepared for mandatory IPO papers. The S-1 Registration Statement is the principal filing document for an initial public offering.
There are two components: the prospectus and the private filing information.
The S-1 contains preliminary information regarding the anticipated filing date.
It will undergo several revisions during the pre-IPO process. The included prospectus is also regularly amended.
Marketing & Updates in Capital Market in Bangladesh:
The creation of marketing materials for the pre-marketing of the newly issued shares. Executives and underwriters promote the share issuance to evaluate demand and determine the ultimate offering price. Throughout the marketing procedure, underwriters are able to modify their financial analyses. This may involve modifying the IPO price or date of issuance as they deem suitable. Companies take the necessary steps to meet certain standards for public share offerings. Both exchange listing criteria and SEC standards for public corporations must be met.
Board and Operations and Capital Market in Bangladesh:
Establish a board of directors and quarterly reporting procedures for auditable financial and accounting data. Stocks Issued The company’s shares are issued on its IPO day. The cash collected from the main issuance to shareholders is reported as stockholders’ equity on the balance sheet. Consequently, the balance sheet share value is based on the complete valuation of stockholders’ equity per share.
Some post-IPO provisions could be implemented. After the day of the initial public offering (IPO), underwriters may have a limited period of time to acquire more shares. Meanwhile, certain investors may experience periods of inactivity.Capital Market in Bangladesh
An IPO’s principal purpose is to raise funds for a company. It may also have additional advantages and downsides.
The corporation has access to investments from the entire investing public, which is one of the primary benefits. This improves the company’s exposure, prestige, and public image, which can boost sales and profitability.
Increased openness resulting from quarterly reporting requirements can typically help a firm obtain more favorable loan conditions than a private company.
Positives and Negatives of an IPO:
An IPO’s principal purpose is to raise funds for a company. It may also have additional advantages and downsides.
The corporation has access to investments from the entire investing public, which is one of the primary benefits. This improves the company’s exposure, prestige, and public image, which can boost sales and profitability.
Increased openness resulting from quarterly reporting requirements can typically help a firm obtain more favorable loan conditions than a private company.
Pros
Can generate additional capital through secondary offerings in the future
Participation in liquid stock equity attracts and keeps superior management and qualified staff (e.g., ESOPs)
IPOs can provide a company with a cheaper cost of equity and debt funding.
Cons
Significant legal, accounting, and marketing costs arise, many of which are ongoing
Increased time, effort, and attention required of management for reporting
There is a loss of control and stronger agency problems
Capital Market Types in Bangladesh:
There are two different types of capital markets: primary and secondary. Primary Market: This is the market where shares, debentures, and other securities are sold for the first time in order to raise long-term capital. Consequently, the primary market is often referred to as the NEW ISSUE MARKET. Primary Market Characteristics: It Is Related To New Issues. It Has No Specific Location. It Has Various Methods Of Float Capital: The following are the basic market capital-raising techniques. i. Public Issue. ii. Offer for Sale.
Secondary Market in Bangladesh:
The secondary market is the market in which previously issued securities are purchased and sold. Transactions on the secondary market are often conducted via the stock exchange. The primary function of the secondary market is to provide liquidity for securities. It Generates Liquidity. It Follows the Primary Market. It Occupies A Specific Position. It Encourages New Investments.
Legal services for the capital market in Bangladesh
Tahmidur Rahman Remura Wahid TRW Associates, the Best Capital Market Law Firm in Bangladesh
It is typical for an attorney who engages in general practice to have a passing familiarity with everything that piques their interest. However, specializing in something related to finance makes a practice unquestionably tough and hence takes a great deal of skill.
Tahmidur Rahman Remura Wahid TRW Associates offers the most qualified Capital Market Attorneys in Bangladesh, as failure to do so may impair your future business opportunities. When obtaining a loan and analyzing the market in light of legal issues is necessary, the requirement for a skilled Capital Market attorney remains an open secret. Foreign investors that seek Capital Market attorneys in Bangladesh face an even greater challenge, as they are aware that a lawyer or firm without the required finance credentials could practice in this field of law.
What is an Initial Public Offering and Capital Market in Bangladesh?
IPO stands for “Initial Public Offering.” It refers to the first time a privately held corporation offers stock to the general public. It is a method by which a private firm can broaden its investor base by issuing public stock.
The ability to obtain more funds through an IPO makes an IPO a valuable growth tool for any private company. Moreover, it is a laudable purpose with numerous potential benefits, such as assisting companies considerably with fundraising, exposure, and the ability to utilize publicly traded stock as a payment method, among others.
Publicity is crucial for businesses since it increases their commercial opportunities. In addition, an IPO permits a company to engage in infrastructure growth and the purchase of new equipment, etc. Additionally, it might be a wonderful way to pay off any debts or past-due obligations.
How to Make an Offering to the Public in Bangladesh:
To make a public offering in Bangladesh, the Securities and Exchange Commission (Public Issue) Rules, 2001 and the Securities and Exchange Commission (Public Issue) Rules, 2006 must be followed. Additionally, there are other norms and regulations that must be followed and observed (on the basis of applicability). Companies Act 1994; Income Tax Ordinance, 1984; Income Tax Rules, 1984; Bangladesh Accounting Standards; and Bangladesh Financial Reporting Standards.
A Capital market, on the other hand, is a form of market where financial securities such as bonds, stocks, etc. are traded. Individuals and institutions participate in this type of commerce. The capital market serves as a conduit for transactions between investors and firms. In addition, the capital market is one of the best sources of capital formation in the economy and contributes to economic expansion.
The capital market facilitates the trade of securities, encourages a wide variety of productive asset ownership, and facilitates the settlement of transitions, among other things.
Highlights of the Capital Market in Bangladesh:
Bangladesh’s capital market is expanding, but at a slower rate than many would prefer, with market development still in its infancy. Since the Securities and Exchange Commission (SEC) was established in 1993, there have been numerous market developments.
After the burst of the bubble in 1996, the capital market has received a great deal more attention, significance, and awareness. In contrast, the DSE general index reached its greatest point in 2010. After reaching its peak, the index began to rapidly decline, shattering all previous records for a decline. After that, BSEC took steps to protect investors, resulting in the infrastructure that exists on the market today. The primary characteristics of the Bangladesh capital market are addressed in the following section: Number of Securities Listed
Compared to our surrounding countries, Bangladesh has a significantly smaller number of publicly traded enterprises. Only 572 firms are listed on DSE (as of January 2018). Numerous economically successful enterprises have been shown to be able to go public and reap the benefits of utilising float capital.
The Capital Market consists of two types of markets: primary and secondary. Primary markets deal with the trading of newly issued stocks and other securities, whilst Secondary markets deal with the exchange of existing or previously issued securities. In other words, whereas the Primary market focuses only on the trading of newly issued securities, the Secondary market focuses on the trading of previously issued securities. In addition, the capital market is divided into two significant segments: the stock market and the bond market.
Primary markets are advantageous for both investors and new businesses, since investors can invest their excess funds and new businesses can extend their operations by raising additional capital. There are various methods for raising capital; for instance, many companies solicit investors to invest in their business by providing a prospectus. Investors purchase and sell shares on the Secondary market. In contrast to the Primary market, the Secondary market contains no new shares.
There are two stock exchanges in Bangladesh: the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Dhaka Stock Exchange (previously known as the “East Pakistan Stock Exchange”) was launched on April 28, 1954, while Chittagong Stock Exchange was established in 1995.
Both stock exchanges aim to create a robust platform for entrepreneurs to raise funds, create investment opportunities, enhance market transparency, and invite foreign investors to participate in Bangladesh. The Securities and Exchange Commission (SEC) is the capital market regulator in Bangladesh. It administers rules and regulations and seeks to enhance the capital market. Central Depository Bangladesh Limited is the only central depository in Bangladesh (CDBL).
Tahmidur Rahman Remura Wahid TRW’s Capital Market Lawyers in Bangladesh are well-equipped to handle sophisticated capital market matters.
How to apply for an IPO in Capital Market in Bangladesh:
Collect IPO application form from DSE or its broker offices Bankers to the issue.
Distributed to the public + under writers (If subscribed by less than 50%, return to the public)
Subscribed fully
Distribute as supply
Refund Warrant /Allotment of IPO:
If your lottery application is approved, the issuer will transfer your shares to the B/O account you specify.
If you do not win the lottery, your subscription fee will be refunded to you via check or warrant made payable to the applicant.
The refund warrant must then be deposited for clearance with your bank. You will thus receive a refund. Consequently, there is no loss in the IPO.
We offer the subsequent services in regards to Capital Market in Bangladesh:
– Assisting in the listing process with the DSE, CSE; – Issuing an Initial Public Offering (IPO); – Drafting a prospectus; – Ensuring compliance with the securities legislation governing the capital markets; – Ensuring that all corporate and regulatory permissions are received on time
– Attending AGM;
– Preparation of all transaction-related corporate documents and agreements;
TAHMIDUR RAHMAN Remura Wahid TRW lawyers provides the services of the entire IPO (initial public offering) process, beginning with the evaluation and assessment of the benefits of an IPO and including the investigation of every potential alternative. With an experienced and skilled team, the company’s management can focus on the crucial aspects of the IPO procedure where their knowledge is important.
Our team has traversed this path numerous times before and can assist you at each stage of the overall IPO Journey. It encompasses corporate back warning, review, exchange administrations, tax assessment, and various masters from around the organization. This enables us to provide superior assistance not only on technical and procedural difficulties, but also on the broader strategic and business considerations that any client would expect from a free financial lawyer. IPO services consist of:
IPO Assistance We function as a coordinated part of the group to offer the correct level of assistance to augment anyone’s current abilities and assets.
Evaluation and lawful reconstruction prior to IPO
International Financial Reporting Standards specificity and speedy close, to meet the requirements of the trade.
Providing pertinent and necessary corporate governance advice and risk management transparency.
Bangladesh’s capital market is one of the smallest in Asia and the third-largest in the region of south Asia. Together with the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).
It also includes a separate regulator, the Securities and Exchange Commission (SEC), as it implements rules and regulations, monitors their ideas for effectiveness, and develops the capital market. TAHMIDUR RAHMAN Remura Wahid TRW’s professionals are well-versed in initial public offerings (IPOs) and relisting on both local and international securities exchanges.
TAHMIDUR RAHMAN Remura Wahid TRW Consulting International serves as detailed bookkeepers, conducting assessments of publishing associated budget summaries and advising on bookkeeping prescriptions and controllers’ remarks. As a significant component of pre-IPO administrations, our knowledge also facilitates the listing of any company. on a company’s posting arrangements, including its operational, financial, and management team.
Are you intending to do Initial Public Offering in Bangladesh within the Capital Market in Bangladesh?
Get your Initial Public Offering in Bangladesh sorted out with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in regards to Capital Market in Bangladesh. For queries or legal assistance, please reach us at:
In Bangladesh, Tahmidur Rahman Remura Wahid TRW Associates has a large practice and experience in tax and VAT related services. Tahmidur Rahman Remura Wahid TRW Associate, as a major law firm, has been named the best tax law firm of the year by Global Law Experts 2023 , in recognition of its top tax and VAT services in Bangladesh.
Tahmidur Rahman Remura Wahid TRW Associates provides the best Tax lawyers in Bangladesh who are experts in Tax Law, which is classified into two categories: Value Added Tax and Income Tax.
There are also various forms of taxes, such as customs duty, gift tax, supplemental duty, and so on. With us, you get a complete answer to your taxation issues. This may involve advising the tax implications of various transactions entered into by an organization, tax deducted at source from salaries, tax withheld from suppliers, quarterly withholding tax return, annual corporate tax return, or the s. 108 return to the tax authorities.
We also represent customers before the taxation authority to settle any disputes or before a tribunal or Court of law to settle or fight a tax appeal. It is critical that you realise the full value of tax-related services in Bangladesh, including the most up to date Tax rate in Bangladesh. Our financial team, in collaboration with our legal team, will ensure complete compliance with finance and law.
Here is a detailed table outlining the tax calculation process in Bangladesh:
Step
Description
1
Determine your tax residency status
2
Determine your taxable income
3
Calculate your tax liability using the tax rates and thresholds
4
Deduct any applicable tax credits or exemptions
5
Pay any taxes due to the National Board of Revenue (NBR)
Here is a more detailed explanation of each step:
Determine your tax residency status: In Bangladesh, tax residency is determined based on your physical presence in the country. If you are physically present in Bangladesh for 183 days or more in a tax year, you are considered a tax resident. If you are physically present in Bangladesh for less than 183 days in a tax year, you are considered a non-resident.
Determine your taxable income: Your taxable income includes all forms of income earned or received in Bangladesh, such as salary, rental income, and investment income. Certain types of income, such as agricultural income and certain types of foreign income, are exempt from taxation in Bangladesh.
Calculate your tax liability: Once you have determined your taxable income, you can calculate your tax liability using the tax rates and thresholds specified in the tax laws of Bangladesh. The tax rates vary depending on the type of income and the amount of income earned.
Deduct any applicable tax credits or exemptions: There are various tax credits and exemptions available in Bangladesh that can be claimed to reduce your tax liability. These include credits for charitable donations, home ownership, and child education, among others.
Pay any taxes due: Once you have calculated your tax liability, you must pay any taxes due to the NBR. Taxes can be paid online through the NBR’s e-payment portal or at a designated bank or financial institution.
Please note that this is just a general overview of the tax calculation process in Bangladesh. The specific tax laws and rules may vary and are subject to change. It is always best to consult with a tax professional or refer to the NBR’s website for the most accurate and up-to-date information.
Tahmidur Rahman Remura Wahid and its Tax litigation department:
We also provide clients with normal services for personal income tax matters, such as return preparation and submission, tax clearance certificate, and tax residence certificate. Tahmidur Rahman Remura Wahid TRW Associates also provides significant legal help in income tax reference matters before the Supreme Court of Bangladesh under Section 160 of the Income Tax Ordinance.
We are well-known for our honesty, efficiency, and high levels of partner involvement. Our reputation is built on the simple principle of providing personal, prompt service and business advice that is relevant to today’s needs and current Tax rate in Bangladesh. Your subscription to our service will connect you with a team of committed, highly vetted professional Lawyers, accountants, and tax advisors who will learn about your business practices and operations and begin delivering the best probable solutions.
We set and maintain the highest quality standards for ourselves. This is evident not just in our selection of partners and competent staff, but also in their ongoing training. Our Associates are regularly attending external continuing professional development seminars to further their specific knowledge in a variety of fields.
Minimum Tax Rate and Tax rate in Bangladesh
It is suggested to reduce the business turnover tax rate for individual taxpayers by 0.5 percentage points.
to 0.25%.
Reduction of the company’s tax rates
It is planned to cut the corporate tax rate from 25% to 22.5%. It is suggested to cut the tax rate for privately held corporations from 32.5% to 30%. The tax rate on artificial entities and other taxable entities besides corporations and partnerships has been set at 30%. It is recommended that private universities, medical institutions, and engineering colleges pay a 15% tax on their income. It is planned to align the tax rates of mobile financial service providers with those of publicly traded banks and insurers. b) One-Person Business (and PC) Tax Rate
The recommended tax rate for one-person corporations (OPC) is 25%.
Taxpaying Individual of Third Gender and their Tax rate in Bangladesh
It has been planned to increase the tax-free threshold for taxpayers of the third gender to TK 350,000. If a taxpayer employs 10% or more of the organization’s entire workforce or more than 100 employees of the third gender as the hiring authority, the taxpayer is eligible for the following tax relief: whichever is smaller, 5% of the tax due or 75% of the total compensation paid to third-gender employees.
Tax rate in Bangladesh for Individuals
Income Tax Rate for an individual:
a) Minimum Tax Rate: The business turnover tax rate for individual taxpayers is 0.25%.
b) Investment Credit: Investment credit will be allowed a flat 15% of the eligible amount. The ceiling for calculation of eligible amount for investment credit is 20% of total income. Moreover, the rate of investment credit will be 7.5% in case of failure in the submission of return.
c) Submission of Income Tax Return:
Date of Submission: One has to submit the 1st Income Tax Return on 30th June of the end of an income year.
Importance of submitting Income Tax Return: The Submission of Income Tax Return has been made mandatory for obtaining or maintaining a credit card as well as in respect of selling land situated in specific areas in which the deed value exceeds tk. 1,000,000 (Ten Lakhs only).
The Requirement of ETIN has been changed with proof of submission of return
d) Submission of IT-10B: One has to submit IT-10B (Asset & Liabilities Statement) for all local and global assets & liabilities.
Existing Tax Step
Existing Tax rate
Up to Tk. 3 Lac.
0
On next Tk. 1 Lac.
5%
On next Tk. 3 Lac
10%
The next Tk. 4 lac
15%
The next Tk. 5 lac
20%
The rest of the money
25%
Justifications for surcharges
It has been recommended in five steps as opposed to the current seven. The provision requiring the payment of surcharges on assets in the absence of income has been repealed. It has been proposed that the minimum search fee be eliminated.
Rationalisation of the rate of fishing income tax
Instead of the current three steps, four steps are proposed for the income Tax rate in Bangladesh: It is proposed to impose a 15% tax on income over Tk. 30 lacs, as opposed to the current 10% tax on income exceeding Tk. 20 lacs.
Amount of income
Tax Rate
On income up to the first Tk 10 lac.
0
On income up to the next Tk 10 lac
5%
On income up to the next Tk 10 lac
10%
On the remaining income
15%
Deduction at Source and Tax rate in Bangladesh:
Tax Rate in Bangladesh for Corporations:
Publicly Traded Companies may be categorized as follows:
The tax rate for publicly traded companies (those that have issued at least 10% of their stock through an IPO) is 20%. In the event of a violation, the Tax rate may be increased to a maximum of 22.5%.
a) The tax rate for a publicly traded company (with less than 10% of its shares issued through an IPO) is 22.5%. In the event of a violation, the Tax rate may be increased by up to 25%.
b) Non-listed Public and Private Companies are subject to a 27.5% tax rate. In the event of a violation, the Tax rate may be increased up to 30%.
c) The tax rate on artificial entities and other taxable entities outside corporations and partnerships has been set at 27.5%. In the event of a violation, the Tax rate may be increased up to 30%.
d) A 15% tax will be placed on the income of private universities, private medical colleges, private dental schools, private engineering colleges, and private colleges entirely devoted to providing ICT education.
e) The Tax Rate for Individual Associations is 27.5%. In the event of a violation, the Tax rate may be increased up to 30%.
f) The One Person Company (OPC) tax rate is 22.5%. In the event of a violation, however, the Tax rate may be increased to a maximum of 25%.
Please remember that all income and receipts must be processed through bank transfer. In addition, all expenditures and investments above Tk. 12, 00,000 (Twelve Lakhs) annually must be transferred via bank.
Tax Rate on Banks and Financial Institutions:
37.5 percent for publicly traded banks, insurance companies, and financial institutions (except merchant banks). On the other side, a 40% Tax will be placed on non-publicly traded banks, insurance companies, and financial institutions. In addition, a 37.5% Tax Rate will be applied on Merchant Bank.
Tax Rate on Tobacco-Producing Corporations:
A tax of 45% plus 2.5% (surcharge) will be levied on corporations that manufacture cigarettes, bidis, chewing tobacco, and gul.
Tax Rate for Publicly Traded Mobile Operators:
40% Taxes will be levied on publicly traded mobile operator companies. In contrast, the tax rate levied on privately held mobile operator companies is 45%.
vi) Taxpayer belonging to the Third Gender
a) The present tax-free threshold for taxpayers of third gender is up to TK 350,000.
b) If a taxpayer employs 10% of the organization’s entire workforce or 25 individuals from the physically challenged or third gender group, the business is eligible for:
5% of tax payable or ; 75% of the wage paid to these individuals or 5% of tax payable, whichever is lower vii) Tax on information and communication technology (ICT) (Start-up Business): For the purpose of supporting ICT-related startup firms, all other types of reporting are exempted, although a tax return must be filed. In addition, the rate of turnover tax has been set at 0.10 percent.
Tax on the Textile Industry:
The present Textile Sector tax rate is 15%. This structure will be accessible until June 30, 2025.
It has been proposed not to deduct income tax at the source from Workers Participation Fund or Workers’ Participatory Fund payments up to TK 25,000.
Rationalisation of general source tax rates
In the case of the public auction sale or lease of any commodity property or rights, it is suggested to collect advance tax at source at the rate of 10% instead of the current 5% from the auction buyer. Under the 2013 Overseas Employment and Immigration Act, it is recommended that TK 50,000 be collected at the point of renewal. It has been recommended to introduce a mechanism for deduction at source when paying bills as opposed to renting electricity from all types of power-generating enterprises.
Reduction of the advance tax on aged vessels:
The advance tax per passenger for vessels older than ten years has decreased from Tk.125 to Tk.100.
The Digital Transformation of Bangladesh
In addition to the 22 existing tax-free industries in Bangladesh’s digital transformation, the following six sectors have been declared tax-free.
a) Cloud-Based Service
c.) System Integration
c.) online education platform
d.) electronic book editions
f.) Mobile applications development service and
f.) Freelancing in IT
An incentive for “Made in Bangladesh” mega-industrial production:
In order to propel Bangladesh forward in the mega-industry, an automotive (three-wheelers and four-wheelers) manufacturing company with an investment of at least Tk. 100 billion or more should be exempt from taxation for twenty years. In addition, revenue made in foreign currency by ocean-going vessels flying the Bangladeshi flag is exempt from taxation until 2030, so long as it is delivered to Bangladesh via a banking channel.
Regarding this, a 12% tax rate will be applied on all other sectors exporting goods and services, while a 10% tax rate will be imposed on all other industries exporting green goods and services.
Incentives for the production of home appliances in Bangladesh:
The industries of washing machines, blenders, microwave ovens, electric sewing machines, induction cookers, kitchen hoods, and kitchen knives & kitchen equipment will be exempt from taxation for ten years. The existing exemption facility has been enlarged to include the importation of raw materials utilized by these industries.
Agricultural product industrialization:
a) Examples of value addition to agricultural products manufactured in Bangladesh as a result of industrialization include:
Fruit processing
Vegetable processing
Producers of dairy and dairy products as well as baby food
The business owner has been granted a 10-year tax exemption.
b) Manufacturers of agricultural machinery have been granted a 10-year tax exemption.
National employment and skills development incentives:
Institutions providing education and training in the following fields to generate trained human resources appropriate for industrialization shall receive a 10-year tax exemption.
i. Diplomas, degrees, and vocational training in all disciplines of agriculture, fisheries, science, and information technology;
Automobiles, Aircraft, Food Preservation Foot over, Glass Mining Mechanical, Shipbuilding, Leather, Refrigeration, Ceramics, Mechanist, Garments, provide professional training on Design, and Pattern Making, Pharmacy, Nursing, Integrated Medical, Radiology & Imaging, Ultrasound, Dental, Clothing & Garment Finishing, Poultry Farming.
Which types of products comprise the light engineering industry:
a) Will only be utilized in industrial factories
b) There will be no entire instrument components available.
Entrepreneurs in the manufacturing sector have been granted a 10-year tax exemption.
Incentives for entrepreneurship and employment in the IT hardware sector:
Income from hospital operations will be exempt from taxation for ten years if:
I Hospital must be located beyond the districts of Dhaka, Narayanganj, Gazipur, and Chittagong;
ii) There should be a hospital with at least 250 beds or a specialist hospital with 200 beds.
Help with microcredit collection:
In order to facilitate access to microcredit, the Micro Credit Regulatory Authority has exempted the income from organization licensing from taxation.
Stamp Duties for Deeds:
The Finance Act, 2023 , has been amended with respect to Stamp Duties; the amount of Stamp Duties is mentioned below:
a) Declaration: BDT 300
b) Deed of Sale (Saf kabala): 1.5% of the subject property’s appraised value, not to exceed BDT 2,000,000)
c) Certified copies of legal documents: BDT 100
d) Declaration of Divorce: BDT 2000
e) Heba Declaration Document: BDT 1,000
f) Lease Agreement: The following stamp duties shall be applied to the Lease Agreement:
Leases between 5 and 25 years in duration shall include stamp duties of 0.2% of the subject property’s valuation, not to exceed BDT 1,000,000.
Leases with a duration of more than 25 years and a permanent nature will incur stamp taxes of 0.3%, not to exceed BDT 2,000,000.
In all other instances, a 0.3% stamp tax (not exceeding BDT 3,00,000,000 g) will be applied. Partnership Firm: If the Capital is BDT100,000, a Stamp Duty of BDT2,000 is applicable; otherwise, a Stamp Duty of BDT4,000 is applicable.
Durable Power of Attorney in Bangladesh:
$1,500 is the cost of the General Power of Attorney The Special Power of Attorney costs BDT 800. BDT 2000 is the cost of a Power of Attorney (Bank & Financial Institution) Section 44(4)(b) of ITO, 1984 gives the government the authority to exempt any income, or a portion thereof, from Tax Liability as required by law. Consequently, the government has lately authorized various exclusions outside of the ITO, 1984, via the Official Gazette. Consequently, the relevant revisions are briefly outlined below:
a) Tax Rate on Export Income (SRO-158- Aain/Aikor/2023 , effective 1 June 2023 ):
The government has exempted the following from Tax on Export Income from 01 July 2023 to 30 June 2025:
• Tax exemption of 50% on the export income of individuals, firms, and Hindu undivided firms.
• There will be a 12% tax exemption on the export earnings of others
• Other than Individual, Firm, and Hindu Undivided Firm, any revenue derived from exporting items manufactured in Leadership in Energy and Environmental Design (LEED) Certified Factories would be exempt from tax by 10%.
• This SRO-158-Aain/Aikor/2023 does not apply to any Transportation Service, Mobile Telecommunication Service, Internet, or Internet-Related Service.
b) Yarn production and dyeing (SRO- 159- Aain/Aikor/2023 , dated 1 June 2023 ): The Government has imposed a 15% tax rate on the profits of businesses related to Yarn Production, dyeing, finishing, printing, and other businesses similar to these. The duration of this exemption is from 1 July 2023 to 30 June 2025.
Growth of the tax base and Tax rate in Bangladesh
a) It is recommended to mandate the acceptance of TINs in the following fields.
Purchase of savings bonds exceeding Tk 2 lacs.
Postal savings deposit exceeds Tk 2 lacs.
Home design approval.
Enrollment of Cooperative Societies
b) It is recommended to enable e-commerce platforms to qualify as tax-deductible sources.
Tax rate in Bangladesh and Automated Invoice Tax Payment
Taxes up to TK 5 Lac can be paid through an automated portal.
5.) The Digital Transformation of Bangladesh
In addition to the 22 existing tax-free industries in Bangladesh’s digital transformation, the following six sectors have also been designated tax-free.
a) Cloud-Based Service
c.) System Integration
c.) online education platform
d.) electronic book editions
f.) Mobile applications development service and
f.) Freelancing in IT
Encouraging “Made in Bangladesh” in big industrial production.
To advance Bangladesh in the mega-industry, a business that manufactures automobiles (three- and four-wheeled vehicles) and invests at least 100 billion taka would be exempt from taxes for 20 years.
Incentives for the manufacture of home appliances in Bangladesh and Tax rate in Bangladesh:
The industries of washing machines, blenders, microwave ovens, electric sewing machines, induction cookers, kitchen hoods, and kitchen knives & kitchen equipment will be exempt from taxation for ten years.
8.) Agricultural products industrialization
i.) Examples of value addition to agricultural products manufactured in Bangladesh as a result of industrialization include:
a.) Fruit preparation
b.) Vegetable processing
b.) Milk and dairy product production and
d.) Baby food manufacturers.
Entrepreneurial tax exemption for 10 years has been granted.
ii) Entrepreneurs who manufacture agricultural machinery have been granted a 10-year tax exemption.
9.) National incentives for skill development and employment
Institutions involved in providing education and training in the following fields for the purpose of developing trained human resources suited for industrialization shall receive a 10-year tax exemption.
Diploma Degree and Vocational Education in all fields of Agricultural Fisheries Science and Information Technology and Automobiles, Aircraft, Food Preservation Foot over, Glass Mining Mechanical, Shipbuilding, Leather, Refrigeration, Ceramics, Mechanist, Garments, provide professional training on Design, and Pattern Making, Pharmacy, Nursing, Integrated Medical, Radiology & Imaging, Ultrasound, Dental, Clothing & Garment Finishing, Poultry Farming. 10.) Encouragement of light engineering entrepreneurship and employment
Which types of products comprise the light engineering industry:
i.)Will only be used in industrial plants and
ii)There will be no entire instrument components.
Entrepreneurs in the manufacturing sector received a 10-year tax exemptions.
Incentives for entrepreneurship and employment in the IT hardware industry
Bangladesh is dependent on imports for self-sufficiency in creating businesses and enterprises and as an employment stimulant in the IT sector. A 10-year tax break has been granted to manufacturers of CCTV equipment and flash drives.
ensuring cost-effective and decentralized medical care
It is recommended that hospital operation income be exempt from taxation for a period of ten years if:
Hospital must be located outside of the districts of Dhaka, Narayanganj, Gazipur, and Chittagong, and there must be at least 250 beds or 200 specialized beds.
Encouragements for Female Entrepreneurs
If the yearly revenue of a woman-owned SME sector is less than TK 70 lacs, the income of the company is excluded from income tax.
Contribution to the development of the bond market for long-term capital collecting
In order to develop a market for the easy circulation of Sukuk bonds for long-term capital mobilization, it is proposed that the tax applicable to the retransfer of property from the trust or SPV to the parent company be waived.
Reduction of depreciation rate for building & structure:
Tax rate in Bangladesh for building & structure–
Existing rates
Recommended rate
General building
10%
5%
Factory building
20%
10%
Tax rate in Bangladesh and Formalisation of the system:
It is proposed that the following expenses must be paid by bank transfer and mobile financial services or MFS.
a.)Salary benefits exceeding Tk 15,000
b)Any rental sum and
b.) If the total of all other expenditures reaches TK.50,000
ii) It is recommended to deduct an additional fifty percent of the existing source tax rate if the supply and contracting invoice is not paid via banking or mobile financial services (MFS).
Contribution to microcredit collection
In order to facilitate access to microcredit, it is proposed that Micro Credit Regulatory Authority license fees be free from taxation.
Services for Tax Litigation in Dhaka and Chittagong, Bangladesh by Tahmidur Rahman Remura Wahid TRW (Tax rate in Bangladesh):
There are various orders of tax authorities that might be appealed by an assessee. The aggrieved assessee may file an appeal with the relevant appeal forum. In such situations, the aggrieved tax authority may also submit an appeal. Appeals can be lodged with many bodies, including the Taxes Appellate Tribunal. Appeals can also be filed at the Supreme Court’s High Court Division. The above-mentioned appeal facilities are termed as Tax Litigation in the Income Tax Ordinance of 1984.
Orders that irritate an Assessee include:
a) Income Assessment
b) Tax Liability or Refund Calculation
c) Loss set-off and carry-forward d) Imposition of any penalty or interest e) Charge and computation of surcharge or any other sum
d) Tax Deduction
e) Payment of Refunds
Bangladesh’s Tax Appellate Authorities and Tax rate in Bangladesh:
1) Appeal to IJCT against TRO order: Any person aggrieved by a TRO order under section 139 may, within 30 days after the date of service of the order, appeal to the IJCT to whom the TRO is subordinate, and the IJCT’s decision on such appeal shall be final.
2) Appeal to Additional/Joint Commissioner of Taxes or Commissioner of Taxes against Deputy Commissioner of Taxes Order: Any aggrieved assessee other than a company must file an appeal with the Additional/Joint Commissioner of Taxes, and any aggrieved assessee who is a company must file an appeal with the Commissioner of Taxes within 45 days of receiving the concerned order.
3) Appeal to the Commissioner of Taxes against the order of the Additional/Inspecting Joint Commissioner of Taxes: Any aggrieved assessee may file an appeal with the Commissioner of Taxes against the order of the Additional/Inspecting Joint Commissioner of Taxes within 45 days of receiving the relevant order.
4) Appeal to the Taxes Appellate Tribunal against the order of the Additional/Inspecting Joint Commissioner of Taxes or the Commissioner of Taxes against: The Taxes Appellate Tribunal hears appeals against the order of the AJCT or the Commissioner of Taxes, as the case may be. An assessee must file an appeal within 60 days after receiving the appeal order.
5) Appeal to the Supreme Court’s High Court Division against the Taxes Appellate Tribunal’s Order: The assessee or the Commissioner may refer to the Supreme Court’s High Court Division within 90 days of receiving the Taxes Appellate Tribunal’s order.
6) Any dispute between an assessee and any income tax authority, Tax Appellate Tribunal, or the Supreme Court may be handled throughTahmidur Rahman Remura Wahid TRW Tax Litigation Services’ Alternative Dispute Resolution (ADR).
The Tax Expert provides legal logic in accordance with the Income Tax Ordinance and Rules addressing the grounds of disputes in order to protect the taxpayer’s interests.
To carry out the aforementioned role, Tahmidur Rahman Remura Wahid TRW employs professionally qualified individuals and tax specialists who can deal with NBR in a manner that protects the tax payer’s interests.
Recent modifications to the Income Tax Ordinance, 1984 (ITO, 1984) in 2023:
In 2023, modifications were made to the Income Tax Ordinance (ITO) of 1984. The modifications are briefly described below:
xxii) Special Tax: Sections 19AAAA (relating to Special Tax Treatment for Undisclosed Property, Cash, etc.) and 19AAAAA (relating to Special Tax Treatment for Investment in the New Industrial Enterprise) have been deleted. However, Section 19AAAAAA has recently been inserted regarding Special Tax Treatment for investments in new industrial undertakings, stating that no authority shall question the source of income if any amount of money (along with 10% tax on the invested amount) is invested in a new industrial undertaking between 1.07.2023 and 30.06.2023 (both dates inclusive) The above-mentioned Tax shall be payable via pay order or electronic challan.
xxiv) Excess perquisites limit: Section 30(e) of the ITO has been revised. Now, an employer will enjoy the benefits of section 30 of the ITO if his expenditure on perquisites under section 2(45) for any employee exceeds BDT 1,000,000 (ten lakhs), as opposed to the previous limit of tk. 5,50,000 (five lakhs and fifty thousand only).
xxv) Reckoned income: debt cancellation: Section 19 (11) is changed. The provision of Section 19 (11) shall not apply to the Individual. Therefore, a loan or interest waived by a commercial bank, Bangladesh Krishi Bank, Rajshahi Krishi Bank, or any leasing firm will not be considered income for a person.
xxvi) Deemed income (Receipt of loan or gift): Deposits received by a bank, financial institution, or organization registered with the Micro Credit Regulatory Authority or the NGO Affairs Bureau must not be deemed to be income under section 19 of the Income Tax Act (21). In addition, any loan or gift received from the Assessee’s spouse or parents (or sons or daughters) that is processed through a banking channel or formal channel shall not be considered income under the aforementioned clause.
xxvii) 5% special reserve: Since Section 29(1)(v) has been repealed, 5% special reserve established by a Financial Institution is now permissible.
xxviii) Tax implications of the Amalgamation scheme: Section 32 (5A) has been added. No tax is imposed on any capital gain resulting from the transfer of a capital asset in a merger or consolidation. Nonetheless, any consideration received by the shareholders of the merging companies in a form other than shares of the resulting company shall be liable to tax. In addition, the section 32(7) tax exemption for capital gains from government securities is no longer in effect.
xxix) Requirement of submitting an audit report for Tax rate in Bangladesh: Section 35 has been somewhat altered; formerly, this requirement applied to all firms incorporated by the Companies Act of 1913 or the Companies Act of 1994, as amended by “Company” in section 2(20) of the ITO. Consequently, section 20(2) of the ITO requires the “Company” to submit the audit report with the income tax return.
xxx) Business loss & Unabsorbed Depreciation for the amalgamated company: Subsection 8 of Section 42 of the ITO has been added to allow the amalgamated company to carry forward the accumulated loss and unabsorbed depreciation of the ambulating company.
xxxi) New Requirements for Exemption/Reduced-Rate Facilities: New conditions have been introduced to Section 44(5). (a). The new requirements are:
a) All receipts from exempted sources of income or income subject to a reduced tax rate must be received via bank transfer.
b) In the event of failure to comply with the provisions of chapter VII, exemption under section 44 of the ITO, 1984 may be denied.
c) The aforementioned provision regarding obtaining revenues via bank transfer applies to an individual assessee whose gross receipts do not exceed Tk 1,000,000 (one Crore) and to agricultural or farming income (Tax rate in Bangladesh).
xxxii) Failure to file a return under Chapter VII: Section 52(a) has been modified. According to the amended rule, if the payee does not produce proof of return submission at the time of payment, or if the payee does not receive payment by bank transfer, the payee will be subject to a penalty. In such instances, the TDS rate shall be increased by fifty percent (50%) over the standard TDS rate.
xxxiii) New Deducting Authorities: Hotels, resorts, community centers, and transport agencies with an annual turnover in excess of One BDT Crore have been added to Section 52 of the ITO as Deducting Authorities.
xxxIV) Tax on certain services The following modifications have been made to Section 52 AA:
a) The higher rate applicable to bases exceeding 25 million rupees has been excluded.
b) Rate changes for media buying agencies, indenting commissions, mobile networks, auto repair shops, etc.
b) 10% TDS on Internet service is recently implemented
d) The TDS rate shall be increased by fifty percent (50%) if the payee fails to present proof of submission of return at the time the payment is made, or if the payee does not receive payment by bank transfer.
xxxv) The TDS on the export of commodities has been modified per Section 53BB. According to the new amendment and Tax rate in Bangladesh, 1% TDS will apply to all export items, whereas 0.05% TDS previously applied to certain export commodities. In addition, section 53BBBB is eliminated.
xxxvi) TDS on savings/fixed deposit interest: The amendments to section 53 F pertaining to TDS on savings/fixed deposit interest are as follows:
a) If Company is the recipient, the new TDS rate will be 20%
b) The TDS rate will be increased by 50 percent if proof of submission of return is not provided at the time of payment.
c) A parent’s proof of submission of return shall be accepted as a minor’s proof of submission of return.
xxxvii) TDS on property leases: Section 53 HH has been replaced. The provision currently states, “Any registering officer responsible for registering any document relating to any lease of immovable property for at least 10 years shall not register until the tax of 4% of the lease amount is paid by the lessor.”
Deduction from the income of non-residents: Section 56 has been modified somewhat. First, 10% TDS is now added to Bandwith payments. Second, TDS on all other payments has been reduced to 20% from 30%.
xxxix) Consequences of failing to deduct: Section 57 has been changed and new penalties-related sections have been added:
a) Whoever fails to comply with the TDS chapter of the ITO will be fined BDT 1,000,000 (ten lakhs only).
b) New measures for imposing penalties on people and entities responsible for deducting or collecting tax are added.
xxxx) Return of Income: The list of “submission not mandatory” has been updated in accordance with section 75 of the ITO; the following are no longer required to file a return of income:
a) A non-resident without a permanent base in Bangladesh; or
b) Any category of individuals whom the Board may, by decision published in the official gazette, exempt from filing the return.
b) All Funds with the exception of Approved Provident/Gratuity/Pension/Superannuation Funds
d) Monthly Payment Order (MPO) schools that have implemented an English version in their school.
e) A publicly funded university.
Spot Evaluation: Section 82 D has been replaced. The provision of spot assessments at all levels in accordance with Section 82D of the ITO has been expanded outside the growth centers. In addition, the following modifications are made to section 82D:
a) If the assessment of an assessee who has income from a trade or profession is done under this section at the ordinary rate and the assessee pays tax appropriately, no inquiry shall be undertaken into whether the initial capital exceeds five times the assessed income for Tax rate in Bangladesh.
b) The Board (National Board of Revenue) shall issue guidelines for the way in which this section’s assessment is to be made.
xxxxii) Assessment question bar: Section 94B is added. This addition provides that, with the exception of the “Income Tax Authorities” listed in section 3 of the ITO and the courts and authorities listed in Chapter XIX, no one shall have the ability to contest a Chapter-IX assessment.
xxxxiii) Start up Stand Box: The addition of Section 111A. The following are some of the most significant details of this newly introduced provision:
a) A startup is a company with an annual sales of less than Tk 1 billion and that is neither a subsidiary nor a merged entity.
b) The provisions of Sections 30 and 30B do not apply to growth years.
c) If, during a growth year, a startup registered under this section incurs a loss that cannot be fully set off, the amount of the loss that has not been set off shall be carried forward to the following assessment year and so on for a maximum of nine (nine) consecutive assessment years.
d) The minimum rate of turnover tax has been reduced from 0.6% to 0.1%.
e) Obtaining registration under NBR is subject to a number of restrictions.
xxxxiv) Disconnection of utility service connections: a new subsection 143(2)(c) has been added. In the event that the undisputed tax liabilities are not paid within 21 (twenty-one) days of receiving the notice, the utility service connections, such as gas, electricity, water, etc., will be terminated. In this connection, any aggrieved party may seek resolution of the dispute through ADR under section 152I, which has also been changed.
Proof of Return Submission:
The Proof of Return Submission shall be considered as confirmation of return receipt. In the event that PSR is not collected, the individual will be declared a defaulting assessee and subject to a penalty not to exceed Tk. 10,000,000. (Ten Lakhs only). In accordance with section 184A, this submission must be made in the specified sectors, some of which are listed below:
becoming a corporate director or sponsor shareholder;
Requesting a loan from a bank or financial institution in excess of five million Taka:
Obtaining or continuing to hold an import registration certificate or export registration certificate, or a trade license in the area of a city corporation or paurashava; or s license or enlistment as a surveyor of general insurance; or license as a Nikah Registrar under the Muslim Marriages (Registration) Act. 1974 (LII of 1974); obtaining registration of co-operative society; obtaining registration, by a resident, of the deed of transfer, baynanama
obtaining or maintaining a credit card; obtaining or continuing the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession; obtaining the admission of a child or a dependent in an English medium school providing education under the international curriculum or the English version of the national curriculum, located in any city corporation, district headquarters, or municipality; obtaining or continuing the membership of the professional body as a chartered accountant, cost and management
receiving any payment which is an income of the payee classifiable under the head “Salaries” by a person employed in the management or administrative function or in a supervisory position in the production function; or receiving any payment which is an income of the payee classifiable under the head “Salaries” by an employee of the government or an authority, corporation, body or units of the government formed by any law, order or instrument in force, if the emloyee is
Receiving any payment by a resident from a company on account of any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service; Releasing overseas grants to a non-government organization registered with NGO Affairs Bureau or to a Micro Credit Organisation with a license from the Micro Credit Regulatory Authority; Selling any goods or services by any digital platforms to consumers in Bangladesh.
submitting application for the membership of a club registered under , ( ) and Societies Registration Act, 1860 (Act No. XXI of 1860); submitting tender documents by a resident for the supply of goods, execution of a contract, or rendering of a service; submitting a bill of entry for import into or export from Bangladesh; submitting a plan for construction of the building for the purpose of obtaining approval from Rajdhani The 184 C section has been modified. Now, a person with business income must show this proof of return in a conspicuous location on the assessee’s business premises; a penalty will be applied for failure to comply.
Income Tax Fees:
A new amendment has been made to section 16 of the ITO. Capital gains, dividends, and winnings are taxed at the rates outlined in Chapter VII and the Second Schedule.
Are you intending to do your corporate/personal taxes in Bangladesh (Tax rate in Bangladesh)?
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