Value Added Tax Deducted at Source (VDS) Rate

for the Financial Year 2019-20

# Service code Name of Service Rate
1 S001.20 Non Ac Restaurant 7.5%
2 S003.10 Motor garage & workshop 10%
3 S003.20 Dockyard 10%
4 S004.00 Construction firm 7.5%
5 S008.10 Printing press 10%
6 S009.00 Auctioneer 10%
7 S012.14 Internet service provider 5%
8 S013.00 Electric laundry 10%
9 S014.00 Indenting Firm 5%
10 S018.00 Movie Studio 10%
11 S023.10 Cineplex 10%
12 S023.20 Movie distributor 10%
13 S024.10 Furniture manufacturer 7.5%
14 S024.20 Furniture sales centre 5%

15 S026.00 Jewellery shop 5%

16 S031.00 Repairing or servicing centre 10%

17 S036.20 AC launch 5%
18 S037.00 Procurement provider 7.5%
19 S040.00 Security services 10%
20 S042.00 Electric sawmill 10%
21 S047.00 Sports event organiser 10%
22 S048.00 Transportation Contactor (oil) 5%
23 S048.00 Transportation Contactor 10%
24 S053.00 Attendee in board meeting 10%
25 S057.00 Electricity supplier 5%

26 S060.00 Buyer of Auctioned goods 7.5%

27 S063.00 Tailoring shop & tailors 10%
28 S064.10 Amusement park and theme park 7.5%
29 S065.00 Maintenance firm (floor, surface cleaning) 10%
30 S066.00 Lottery tickets vendor 10%
31 S69.00 English medium school 5%
32 S076.00 Social & sports club 10%
33 S078.00 Own brand product/ Non-own brand product 7.5%
34 S080.00 Ride sharing 5%
35 S099.10 IT-enabled service 5%
36 S099.60 Online goods sale 5%
Tax Deducted at Source (TDS)/Withholding Tax
Rate for the Financial Year 2019-20
# Heads of Income Section Rate
1 Salary 50 Average
2 Discount on real value of Bangladesh Bank bills 50A Different rate applies
3 Remuneration to MP 50B Average
4 Interest on securities 51 5%
5 Supply of goods or execution of contracts 52 Different rate applies
6 Payment of royalties etc. 52A Different rate applies
7 Payment of certain services 52AA Different rate applies
8 Clearing and forwarding agent 52AAA 10%
9 Cigarette manufactr (manual) 52B 10%
10 Compensation against acquisition of property 52C 1%-2%
11 Interest on savings instruments 52D Different rate applies
12 Payment to beneficiary of WPPF 52DD 5%
13 Brick field:
- Capacity one section 45,000
- One and a half section 52E 70,000
- Two section 90,000
- Automatic brick field 150,000
14 Commission of L/C 52I 5%
15 Travel Agent 52JJ Different rate applies
16 Renewal of trade license:
- Dhaka and Chittagong City Corporation BDT 3000
- Other City Corporation BDT 2000
- Pourashava at District Headquarter 52K BDT 1000
- Any other Pourashava BDT 500
17 Freight forwarding agency 52M 15%
18 Rental Power 52N 6%
19 Convention hall, conference centre 52P 5%
20 Income on service provided to non-resident 52Q 10%
21 Phone call of International gateway service
- Bank shall deduct while making credit 52R 1.5%
- IGW operator shall deduct while paying ICX. 7.5%
22 Manufacturer of soft drinks, mineral water 52S Deleted
23 Excess premium paid on life insurance policy 52T 5%
24 Local L/C payment (exception applies) 52U 1%-3%
25 Payment by cellular mobile phone operator 52V 10%
26 Importer 53 Different rate applies
27 Income from house property 53A 5%
28 Shipping business of a resident 53AA 3%-5%
29 Export of manpower 53B 10%
30 Export of certain items 53BB 1%
31 Transaction of member of stock exchange 53BBB 0.05%
32 Export of any goods except certain items 53BBBB 1%
33 Income on purchase by public auction (for tea sale-1% 53C 5%
TDS)
34 Courier business of non-resident 53CCC 15%
35 Acting in a film (on amount exceeding BDT 10,000) 53D 10%
36 Export cash subsidy 53DDD 10%
37 Commission or discount or fees of distributor 53E Different rate applies
38 Commission, remuneration or charge as foreign buying 53EE 10%
agency
39 Interest on saving, fixed or term deposits 53F Different rate applies
40 Real estate and land development business 53FF Different rate applies
41 Insurance commission 53G 5%
42 Survey of general insurance company 53GG 10%
43 Transfer of property 53H Different rate applies
44 Lease of property 53HH 4%
45 Interest on post office saving bank account 53I 10%
46 Rental value of vacant land or plant or machinery 53J 5%
47 Advertisement on newspaper, magazine, TV, radio 53K 4%
48 Transfer of security or mutual fund by a sponsor 53M 5%
shareholder
49 Transfer of share of shareholders of stock exchange 53N 15%
50 Sum paid by real estate developer to land owner 53P 15%
51 Dividend:
- Bangladeshi company 54 20%
- Person (non-TIN holder-15%) 10%
52 Lottery 55 20%
53 Income of non-resident 56 Different rate applies
54 Tax for owners of private motor car 68B Different rate applies

Deduction from payment to contractors etc. (section 52)

Where any payment is made by a specified person to a resident, the person making the payment shall
deduct tax at 10% maximum (rate of tax shall be 50% higher if the payee does not have a 12-digit TIN), as
shown below, on the base amount at the time of payment on account of:

a) Execution of contract except for contract for services mentioned in Chapter VII
b) Supply of goods
c) Manufacture, process or conversion
d) Printing, packaging or binding

# Base amount Rate

1 Less than BDT1.5m 2%
2 Exceeding BDT1.5m but less than BDT 5m 3%
3 Exceeding BDT 5m but less than 10m 4%
4 Exceeding BDT 10m 5%

e) Rate of deduction for the following classes of person shall be:

# Amount Rate
1 Oil supplied by oil marketing companies:
(a) For payment less than BDT0.2m Nil
(b) For payments over BDT0.2m 0.60%
2 Oil supplied by dealers or agents (except petrol pumps) of oil 1%
marketing companies
3 Oil supply by companies engaged in oil refinery, for any amount 3%
4 Companies engaged in gas transmission, for any amount 3%
 5 Companies engaged in gas distribution 3%

Deduction from payment of certain services (section 52AA)

Base amount
# Description of payment
< BDT2.5m > BDT2.5m
1 Advisory or consulting service 10% 12%
2 Professional service, technical service fees or technical 10% 12%
assistance fees
3 (i) Catering services
(ii) Cleaning services
(iii) Collection and recovery
(iv) Private security services
(v) Manpower supply services
(vi) Creative media services
(vii) Public relation services
(viii) Event management services
(ix) Training, workshops etc.
(x) Courier services
(xi) Packaging & shifting services 10% 12%
(xii) Other similar services 1.5% 2%
(a) Commission or fees
(b) Gross receipt
4 Media buying agency services
(a) Commission or fees 10% 12%
(b) Gross receipt 0.5% 0.65%
5 Indenting commission 6% 8%
6 Meeting or training fees/honorarium 10% 12%
7 Mobile network operator, technical support service provider, 10% 12%
service delivery agent engaged in mobile banking operations
8 Credit rating agencies 10% 12%
9 Motor Garage or workshop 6% 8%
10 Private container port or dockyard 6% 8%
11 Shipping agency commission 6% 8%
12 Stevedoring/berth commission 10% 12%
13 Transport service, car rental or ride sharing service 3% 4%
13A Wheeling charge for electricity transmission 4% 5%
14 Any other service which is not mentioned in Chapter VII and is
not a service provided by any bank, insurance or financial 10% 12%
institutions.

Deduction from income of non-residents (section 56)

# Description of payment Rate

1 Advisory or consultancy services 20%
2 Pre-shipment inspection services 20%
 3 Professional services, technical services/know-how or technical assistance 20%
4 Architecture, interior design, landscape design, fashion design or process design 20%
5 Certification, rating etc. 20%
6 Charge or rent for satellite, airtime or frequency, or rent for channel broadcast 20%
7 Legal services 20%
8 Management services, including event management 20%
9 Commission 20%
10 Royalty, license fee or payments related to intangibles 20%
11 Interest 20%
12 Advertising broadcasting 20%
13 Advertisement making or digital marketing 15%
14 Air transport or water transport not being the carrying services mentioned in 7.5%
sections 102 or 103A
15 Contractors or subcontractors of manufacturing, process or conversion 7.5%
16 Suppliers 7.5%
17 Capital gains 15%
18 Insurance premiums 10%
19 Rental of machinery, equipment etc. 15%
20 Dividends:
Companies 20%
Any other person, not being a company 30%
21 Artists, singers or players 30%
22 Salary or remuneration 30%
23 Exploration or drilling in petroleum operations 5.25%
24 Surveys for coal, oil or gas exploration 5.25%
24A Fees etc. of surveyors of general insurance company 20%
25 Services for developing connectivity between oil or gas fields and export points 5.25%
26 Any payments against any services not mentioned above 20%
27 Any other payments 30%

Disclaimer: All the above numbers/figures/rates are compiled from Finance Act 2019-20. If there are any
discrepancies arises, the existing Value Added Tax Act 2012 & Income Tax Act 1984 and Income Tax Rules 1984
will be prevailed.

Prepared By:

Md Sohel Rana MBA, ACCA, ITP

Manager-Tax

Daraz Bangladesh Limited (Ali Baba Group)

Please let me know if you have query by following mail Id: [email protected]