BSEC guidelines on deduction of tax at source on dividend income.

Bangladesh Securities and Exchange Commission (BSEC) has directed to ensure necessary compliance through distribution of dividend and issuance of ‘Tax Deduction Certificate’ and immediate notification of investors in related matters. BSEC has given this instruction to both the stock exchanges of the country.

This information was informed in a circular signed by BSEC Executive Director and Spokesperson Mohammad Rezaul Karim on Monday (November 4).

According to the notification, instructions have been given to ensure proper compliance of condition no. Through the said letter, the listed companies have been instructed to take necessary steps to issue cash dividend distribution and tax deducted at source on the distributed dividend along with issuance of ‘Withholding Tax Certificate’ along with notification to the investor through SMS or email.

It is also stated in the circular that Bangladesh Securities and Exchange Commission (BSEC) has given direct instructions to Dhaka Stock Exchange PLC and Chittagong Stock Exchange PLC and the listed companies to ensure full compliance with the relevant compliance through the said letter.

According to the letter, BSEC is working to ensure transparency and accountability in the interest of investors and their welfare in the country’s capital market. BSEC is working with exchanges and listed companies to ensure that investors can get instant information and stay informed on various matters related to their BO accounts, including distribution of cash dividends and issuance of ‘Tax Deduction Certificate’. At the same time, this initiative will provide investors with quick and easy access to tax information on their investments, which will facilitate filing of income tax returns and disclosure of investment information therein.