Individuals Required to File Mandatory Income Tax Returns in Bangladesh 

Understanding Tax Filing Obligations

In Bangladesh, certain individuals are required to file mandatory income tax returns. This obligation arises under various circumstances, as outlined below:

Income-Based Criteria

• Income Exceeding Tax-Free Limit: If your total income surpasses the tax-free threshold, you must file a tax return.
• Previous Tax Assessments: If your income was assessed or deemed taxable in any of the three preceding years, you are required to file.

Business and Professional Activities

• Partnerships: Individuals who are partners in a firm must submit tax returns.
• Corporate Affiliations: Shareholders, directors, or employees of a company fall under this category.
• Executive or Managerial Roles: Those employed in executive or managerial positions within businesses or professions are obligated to file.
• Tax Exemptions or Reductions: If you benefit from tax exemptions or reduced tax rates, you need to file a return.

Financial Transactions

• Large Loans: Individuals who take loans exceeding 20 lakh taka, even if their income is not taxable, must file.
• Import or Export Activities: Those involved in import or export businesses, as evidenced by registration certificates, are required to file.

Professional Licenses and Registrations

• Trade Licenses: Individuals holding trade licenses in city corporations or municipalities must file tax returns.
• Cooperative Society Registration: Members of registered cooperative societies are subject to this obligation.
• Professional Licenses: Surveyors, doctors, dentists, lawyers, accountants, engineers, architects, and other professionals need to file if they hold relevant licenses.
• Marriage Registrars: Individuals licensed as nikah registrars, Hindu marriage registrars, or special marriage registrars must file returns.
• Trade Body or Professional Organization Membership: Membership in trade bodies or professional organizations may trigger a tax filing requirement.

Permits and Licenses

• Drug, Fire, and Environmental Licenses: Those holding drug licenses, fire licenses, or environmental clearance certificates are required to file.
• Gas Connections: Individuals with commercial or industrial gas connections, or residential gas connections in city corporation areas, must file.
• Watercraft Survey Certificates: Owners of rented watercraft, such as launches, steamers, fishing trawlers, cargo, coasters, or dumb barges, need to file if they have survey certificates.
• Brick Production Permits: Individuals with permission to produce bricks from the Department of Environment or District Administration Office must file.

Educational and Property Matters

• School Admissions: Parents enrolling their children or wards in English medium schools in city corporations, district headquarters, or municipalities are required to file.
• Electricity Connections: Those with electricity connections in city corporations or cantonment board areas must file.
• Agency or Distributorship: Individuals holding agency or distributorship agreements with companies are subject to tax filing.
• Firearm Licenses: Individuals possessing firearm licenses need to file tax returns.
• Letters of Credit: Opening letters of credit for import purposes may trigger a filing requirement.

Financial Accounts and Investments

• Post Office Savings Accounts: Accounts exceeding 5 lakh taka require tax filings.
• Fixed Deposits: Fixed deposits of more than 10 lakh taka necessitate filing.
• Savings Certificates: Purchasing savings certificates worth more than 5 lakh taka may trigger a filing obligation.

Elections and Shared Economic Activities

• Elections: Participation in municipal, upazila, district council, city corporation, or national assembly elections may require filing.
• Shared Economic Activities: Individuals involved in shared economic activities by providing resources like motor vehicles, space, accommodation, or others must file.

Income and Remuneration

• Salaries and Allowances: Individuals receiving salaries or allowances for managerial, administrative, or supervisory positions are required to file.
• Commission and Fees: Income from commission, fees, or other sources through mobile banking, electronic money transfer, or mobile phone account recharge may trigger filing.
• Professional Services: Individuals receiving payments for advisory, consultancy, catering, event management, manpower supply, or security services must file.
• Government Payments: Receiving more than 16,000 taka monthly from the government through Monthly Payment Order (MPO) requires filing.
• Insurance Agency Certificates: Individuals holding insurance agency certificates must file tax returns.

Interest and Foreign Transactions

• Interest Income: Interest earned from fixed deposits, bank deposits, treasury bonds, savings certificates, government bonds, insurance, etc., may require filing.
• Foreign Currency Accounts: Maintaining or earning foreign currency accounts may necessitate filing.
• Foreign Income: Receiving royalties, prizes, or other income from foreign entities may trigger a filing requirement.
• Goods and Services: Income from providing or selling goods or services may require filing.
• Government Property: Receiving land, houses, or other property from government or semi-governmental organizations through payment may necessitate filing.

Government Benefits and Exemptions

• Social Security Programs: Benefits from government social security programs may require filing.
• Utility Bill Exemptions: Exemptions or benefits received for paying bills to government or semi-governmental organizations for electricity, gas, water, telephone, internet, satellite TV, mobile phones, property tax, etc., may trigger filing.
• Local Tax Exemptions: Exemptions or benefits received for paying local taxes may require filing.
• Foreign Company or Individual Income: Income from foreign companies or individuals may necessitate filing.
• Government or Semi-Governmental Income or Benefits: Income or benefits from government or semi-governmental organizations may trigger filing.
• Agreements with Foreign or Government Entities: Entering into agreements with foreign entities or government or semi-governmental organizations may require filing.

Note: This information provides a general overview of individuals required to file mandatory income tax returns in Bangladesh. It is essential to consult the specific tax laws and regulations for the most accurate and up-to-date guidance.