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Tax benefits

Tax benefits of donations to icddr,b including Hospital

(Applicable for taxpayers in Bangladesh)

As an individual:

Total income

Tax Rebate

Up to Tk. 10 lacs

15% on eligible expenditure/donation

More than Tk. 10 lacs to up to Tk. 30 lacs

i. 15% on first 2.5 lacs of eligible expenditure/donation
ii. 12% on rest of the eligible expenditure/donation

Above Tk. 30 lacs

i. 15% on first 2.5 lacs of eligible expenditure/donation
ii. 12% on next 5 lacs eligible expenditure/donation
iii. 10% on rest eligible expenditure/donation

 

As a business:

Tax rebate

A company may get exemption of income tax at the rate of 10% for actual cost / monies donated to icddr,b provided that the company meets the conditions given by tax authority.

Allowable limits

Maximum limit of allowable expenditure under the term Corporate Social Responsibility (CSR) is 20% of total income or Tk. 120,000,000, whichever is lower. If actual expenditure exceeds this limit, such amount exceeding the limit cannot be used to compute tax rebate.

Conditions of compliance:

The companies which are interested to attain tax exemption facility as corporate entity, they

  • have to pay salary-allowance of their employee-staff regularly and must have waste treatment plant in their factory/industry especially if industrial goods are manufactured.
  • must pay income tax, VAT, duty and repay institutional debt/obligations regularly.
  • can donate to the institutions under CSR only approved by Government.
  • must comply with all regulations of Bangladesh Labour Act, 2006.
  • cannot treat the amount expended under CSR as an accredited expenses in Manufacturing Account, Commercial Account or Profit Loss Account.
  • have to submit necessary documents/evidences for claiming the tax exemption on CSR to the concerned Deputy Tax Commissioner.
  • have to submit CSR Work Plan by the company to NBR in written for availing Income Tax Exemption Certificate.
  • contribution to the CSR must be incurred through banking channel.

For banking details, visit this page.

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