Through a notification issued on Monday (November 4), the NBR fixed the tax rate of 15 percent on capital gains earned above Taka 50 lakh from trading of shares listed on the stock exchange.
It said that the tax rate on capital gains of more than 50 lakh Takas from trading of shares listed in the stock exchange has been fixed at 15 percent. Under the existing law, if the shares are sold within 5 year Taka from 1st July 2024 to 30th 2025 and earn capital gains, tax is levied at normal rate. As per the existing law, the maximum tax rate on capital gains above Taka 50 lakh is 30 percent. Further, wealthy tax paye Taka are required to pay a surcharge of up to 35 percent under the existing law on the tax payable. According to the existing law, income tax and surcharge are payable at a total rate of 40.50 percent on the capital gains earned from the stock market.
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 transaction subsequent to acquisition of shares listed in the stock exchange i.e. within 5 year taka of purchase of shares or after 5 yea taka in all cases of capital gains from sale of shares. The tax rate is fixed at 15 percent. As a result, 15 percent 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 50 lakh Takas and the amount of net assets of the taxpayer is more than 4 crore Takas, more than 10 crore Takas, more than 20 crore Takas and 50 If it is more than Taka 10 crores, the surcharge shall be paid at the rate of 10 percent, 20 percent, 30 percent and 35 percent respectively on the tax payable.
According to the new notification, if a taxpayer has a net worth of more than Tk. 50 crore, he will be taxed at the rate of 15 percent on the additional income of Tk. 50 lakh earned from the stock market and the tax payable on 15 percent will be 35 percent i.e. a total of 15 percent + 5.25 percent with a surcharge of 5.25 percent = 20.25 percent tax and surcharge to be paid. However, if the net worth of the taxpayer is less than 50 crore Takas, the rate of surcharge may be lower (10/20/30 percent) instead of 35 percent. In that case, the total rate of income tax and surcharge will be further reduced from 20.25 percent based on net assets.
For all other tax paye Taka, including natural paye Taka ons, during the period 01 July 2024 to 30 June 2025 (Tax Year 2025-2026), the maximum rate of tax payable on capital gains of more than 50 lakh Takas from securities transactions of companies listed on stock exchanges is 40.50 The National Revenue Board feels that as the percentage is reduced to 20.25 percent, domestic and foreign invest to taka will be interested in investing in the capital market of Bangladesh.
