Telecommunication Sector under the Income Tax Act 2023 of Bangladesh

The telecommunication sector is a vital part of Bangladesh's economy, driving digital connectivity, innovation, and national development. Under the Income Tax Act 2023, the sector faces specific tax obligations designed to ensure transparency and proper revenue collection.

Tax Rates and Obligations

Corporate Tax Rate

45%

Standard rate for telecom companies

Key Obligations

  • Advance Income Tax (AIT)
  • Withholding Tax (TDS)
  • VAT & Supplementary Duty

This is one of the highest rates in Bangladesh, reflecting the sector's profitability and scale.

Detailed Compliance Requirements

Telecom companies must comply with:

  • AIT on service revenue
  • TDS on vendor payments
  • TDS on salaries/commissions
  • Other statutory deductions

Special Provisions

The Act mandates telecom companies to maintain detailed records of:

  • All financial transactions
  • Subscriber information
  • Digital payment records

Non-compliance can result in penalties, additional taxes, and legal actions.

Conclusion

The Income Tax Act 2023 ensures that the growing telecommunication sector remains accountable and contributes fairly to national revenue. Companies must focus on strict compliance, transparent reporting, and timely tax payments to maintain growth and avoid regulatory risks.

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