I.T Manual, Part-1 [Sec. 46C
1[46C. Exemption from tax of newly established physical infrastructure facility set up between the period of July, 2011 and 2[June,3, etc. in certain cases.-
4[(1) Subject to the provisions of this Ordinance, income, profits and gains under section 28 from physical infrastructure facility,hereinafter referred to as the said facility, set up in Bangladesh between the first day of July, 2011 and the thirtieth day of June,5 (both days inclusive) shall be exempted from the tax payable under this Ordinance for ten years beginning with the month of commencement of commercial operation, and at the rate, specified below:
|Period of Exemption||Rate of Exemption|
|For the first and second year||100% of income|
|For the third year||80% of income|
|For the fourth year||70% of income|
|For the fifth year||60% of income|
|For the sixth year||50% of income|
|For the seventh year||40% of income|
|For the eighth year||30% of income|
|For the ninth year||20% of income|
|For the tenth year||10% of income.]|
(2) For the purpose of this section, "physical infrastructure facility" means,-
(a) deep sea port;
(b) elevated expressway;
(c) export processing zone;
(e) gas pipe line;
(f) Hi-tech park;
(g) Information and Communication Technology (ICT) village or software technology zone;
(h) Information Technology (IT) park;
1 Ins. by F.A. 2011
2 Subs. for "June 2013" by F. A. 2013
3 Subs. for "2015" by F.A. 2014.
4 Subs. by F.A. 2013.
5 Subs. for "2015" by F.A. 2014
(i) large water treatment plant and supply through pipe line;
(j) Liquefied Natural Gas (LNG) terminal and transmission line;
(l) rapid transit;
(m) renewable energy (e.g energy saving bulb, solar energy plant, windmill);
(n) sea or river port;
(o) 1[toll road or bridge];
(p) underground rail;
(q) waste treatment plant; or
(r) any other category of physical infrastructure facility as the Government may, by notification in the official Gazette, specify.
(3) The exemption under sub-section (1) shall apply to the said facility if it fulfils the following conditions, namely:-
(a) that the said facility is owned and managed by-
(i) a body corporate established by or under any law for the time being in force with its head office in Bangladesh; or
(ii) a company as defined in কোম্পানী আইন, 1994 (1994 সনের ১৮ নং আইন) with its registered office in Bangladesh and having a subscribed and paid up capital of not less than two million taka on the date of commencement of commercial production;
1 Subs F. A. 2012
(b) that thirty percent of the exempted income under sub-section (1) is invested in the said facility or in any new physical infrastructure facility during the period of exemption or within one year from the end of the period to which the exemption under that sub-section relates and in addition to that, another ten percent of the exempted income under sub-section (1) is invested in each year before the expiry of three months from the end of the income year in thepurchase of shares of a company listed with any stock exchange, failing which the income so exempted shall, notwithstanding the provisions of this Ordinance, be subject to tax in the assessment year for which the exemption was allowed:
Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section:
(c) that the said facility is approved, and during the relevant income year, stands approved by the Board for the purposes of this section;
(d) that application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within six months from the end of the month of commencement of commercial operation;
(e) that the said facility maintains books of accounts on a regular basis and submits return of its income as per provisions of section 75 of this Ordinance.
(4) The Board shall give its decision on an application made under clause (d) of sub-section (3) within forty five days from the date of receipt of the application by the Board, failing which the facility shall be deemed to have been approved by the Board for the purposes of this section:
Provided that the Board shall not reject any application made under this section unless the applicant is given a reasonable opportunity of being heard.
(5) The Board may, on an application of any person aggrieved by any decision or order passed under sub-section (4), if the application is made within four months of the receipt of such decision or order, review the previous decision, order or orders and pass such order in relation thereto as it thinks fit.
(6) The income, profits and gains of the facility to which this section applies shall be computed in the same manner as is applicable to income chargeable under the head "Income from business or profession":
Provided that in respect of depreciation, only the allowances for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.
(7) The income, profits and gains of the facility to which this section applies shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such facility it shall be carried forward and set off against the profits and gains of the said facility for the next year and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the following year and so on, but no loss shall be carried forward beyond the period specified by the Board in the order issued under sub-section (4) or (5).
(8) Unless otherwise specified by the Government, nothing contained in this section shall be so construed as to exempt the following from tax chargeable under this section :-
(a) any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out of the profits and gains;
(b) any income of the said facility classifiable as "Capital gains" chargeable under the provisions of section 31;
(c) any income of the said facility resulting from disallowance made under section 30.
(9) Where any exemption is allowed under this section and in the course of making assessment, the Deputy Commissioner of Taxes is satisfied that any one or more of the conditions specified in this section are not fulfilled, the exemption shall stand withdrawn for the relevant assessment year and the Deputy Commissioner of Taxes shall determine the tax payable for such year. 1[or any individual not being a Bangladeshi citizen is employed or allowed to work without prior approval of the Board of Investment or any competent authority of the Government, as the case may be, for this purpose]
1. Ins.by F.A 2015
(10) Any such facility approved under this section may, not later than one year from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such order or orders thereon as it may deem fit.
(11) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially any exemption allowed under this section.
(12) The Board may make rules regulating the procedure for the grant of approval under sub-section (4), review under sub-section (5), furnish information regarding payment of other taxes by the said facility, and take such other measures connected therewith or incidental to the operation of this section as it may deem fit.]
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