A company typically needs a tax identification number and, if it supplies taxable goods or services, VAT registration. It must file an annual income tax return supported by audited accounts, pay advance tax where applicable, deduct and deposit tax at source on many payments, and file withholding returns. VAT-registered businesses issue proper invoices, keep prescribed records and file monthly returns. Companies with international related-party transactions have transfer pricing obligations. Customs compliance applies to imports and exports. We prepare a tax compliance calendar for each client that reflects the current Finance Act and its own business activities.

One of the most significant changes is the reduction in the withholding rate on interest paid to non-residents from 20 percent to 10 percent. This affects foreign commercial loans, shareholder loans and intra-group financing. Where a double tax treaty provides a lower rate, the payer may apply it if the conditions are met and supporting documents, such as a tax residence certificate, are obtained. Other payments, including royalties, technical fees and service fees, have their own rates and rules. We review loan and service agreements against the 2026 position so that deductions are correct from the first payment.

A payer that fails to deduct or deposit tax as required can be treated as an assessee in default for the amount not deducted, and may face interest, penalties and disallowance of the related expense in its own tax computation. These exposures often appear during audits or due diligence and can accumulate over several years. Where a failure is discovered, the company should quantify it, consider corrective payments and filings, and take advice on how to present the issue to the authorities. We help clients regularise past withholding tax compliance in a way that limits further exposure.

VAT-registered businesses generally file monthly returns, with payment of the net VAT due, by the deadline set in the law following the end of each tax period. Returns must be supported by invoices, purchase records and other prescribed books, and the figures should reconcile with the accounts and bank records. Turnover tax enlisted businesses below the registration threshold follow a different system. Late or incorrect returns attract penalties and interest. Because VAT forms and procedures have changed in recent years, we check current requirements and help clients build reliable monthly processes that support defensible returns.

Yes. A branch, liaison office or project office of a foreign company is generally required to register for tax and file returns in Bangladesh, even where it does not earn income locally, as in the case of many liaison offices. Branches that earn income are taxed on profits attributable to their Bangladesh activities and must deduct tax at source on their own payments. Remittance of branch profits and closure of an office require tax clearance. We advise foreign companies on registration, filing and repatriation so that tax compliance does not become an obstacle when funds are sent abroad.

First, read the notice carefully, identify the legal provision, the period and the deadline, and do not ignore it. Collect the relevant records, such as returns, invoices, contracts, bank statements and withholding certificates, and check whether the authority's figures are correct. A clear written response, filed within time and supported by documents, often resolves the matter or narrows the dispute. If the notice leads to an assessment or demand, appeal deadlines are short and strictly applied. We prepare responses, attend hearings and advise on appeal strategy at each stage, keeping tax compliance records in order throughout.

Companies that enter into international transactions with associated enterprises must price them on an arm's length basis and keep documentation that supports the pricing, and may need to file prescribed statements with their returns. Typical transactions include purchases from group suppliers, royalties, management fees, technical services and loans. The authorities may adjust income if pricing is not supported, with interest and penalties. Intercompany agreements should match the transfer pricing analysis and what actually happens. We work with transfer pricing specialists and review the legal documents so that the group's position is coherent and defensible.

Often they can. The law allows certain returns to be revised or amended within limits, and errors in VAT and withholding can sometimes be corrected through permitted procedures, with payment of the tax and any interest due. Voluntary correction before the authorities raise the issue usually leads to a better outcome than waiting for an audit. However, correction routes and their consequences depend on the type of error, the period and the current law. We assess the exposure, compare the options, and help clients choose a practical route that limits penalties and future risk.