Staff reporter :
The National Board of Revenue on Monday fixed a 15 percent tax rate on any yearly capital gains over Tk50 lac, irrespective of the time frame of the transactions.
Previously, this rate was 30% (effective tax 40.5% after surcharge) for anyone selling the shares before five years and the rate was 15% (effective 20.25% after surcharge) after five years.
As per the existing law, the maximum tax rate on capital gains above Tk 50 lac is 30%. Further, wealthy taxpayers must pay a surcharge of up to 35% under the existing law on the tax payable.
As per Notification No. 383/Act/Income-Tax-52/2024 dated 04/11/2024 issued by the National Board of Revenue irrespective of the period of the transaction after the acquisition of shares listed in the stock exchange. Within 5 years of the purchase of shares or after 5 years in all cases of capital gains from the sale of shares.
The tax rate is fixed at 15%. As a result, a 15% tax will be levied on all share transactions listed on the stock exchange during the period from 1 July 2024 to 30 2025 regardless of the amount of capital income earned above tk 50 lakh and the amount of net assets of the taxpayer is more than Tk 4 crore, more than Tk 10 crore, more than Tk 20 crore and Tk 50.
If the amount is more than Tk 10 crore, a surcharge shall be paid at 10%, 20%, 30%, and 35% respectively on the tax payable.
For all other taxpayers, including natural persons, during the period from July 1, 2024 to June 30, 2025 (tax year 2025-2026), the maximum rate of tax payable on capital gains of more than Tk 50 lakh from securities transactions of companies listed on stock exchanges is Tk 40.50.
The National Revenue Board feels that the reduction from Tk 40.50. % to 20.25% will make domestic and foreign investors interested in investing in the capital market of Bangladesh.