46C. Exemption from tax of newly established physical infrastructure facility set up between the period of July, 2011 and June, 2 [2019], etc.

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[2019], 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[2019]  (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:

(2) For the purpose of this section, "physical infrastructure facility" means,-

(a) deep sea port;

(b) elevated expressway;

(c) export processing zone;

(d) flyover;

(e) gas pipe line;

(f) Hi-tech park;

(g)  Information  and  Communication  Technology  (ICT)  village  or software technology zone;

(h) Information Technology (IT) park;

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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;

(k) mono-rail;

(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;

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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.

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(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.

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(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]

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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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