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TIN must for property transfer valued at Tk 0.1m or above

Trade licence fees hiked


FE Report | Published: June 16, 2019 09:22:09 | Updated: June 17, 2019 16:34:48


Picture used for illustrative purpose only — Collected

Buyers and sellers of immovable properties have to mention their tax identification numbers (TINs) while transferring their assets if the deed value is Tk 0.1 million or above, according to the budget document.

The Finance Bill-2019 said the provision will be applicable to the transfer of properties in city corporation areas, cantonment board and district municipal towns.

Buyers and sellers will have to furnish the TINs in the property transfer certificates on a mandatory basis from the upcoming fiscal year (FY), said the bill.

The provision will be applicable to both the sellers and buyers of land, building and apartments in the locations mentioned above.

The finance bill was presented in parliament Thursday.

In the bill, tax at source at the rate of 5.0 per cent has been imposed on rent or use of any vacant land or plant or machinery.

The government has also made the production of the 12-digit electronic TIN mandatory for receiving foreign donations by non-government organizations (NGOs) and microcredit organisations.

Private universities, private hospitals, clinics, diagnostic centres, firms and association of persons will also have to obtain TINs and file withholding tax returns from the upcoming fiscal, the bill said.

From the next fiscal, if tax at source is not deducted in case of the applicable sector, taxmen will restrict all the claimed expenditure of the taxpayers and impose tax on it.

Advance sales and deposits should be transacted through the banking channel otherwise it would be considered income of the taxpayers.

Also, advance house rent over Tk 0.2 million should be transferred through the banking channel, otherwise that amount would be considered taxable income.

According to the provision, the advance house rent should be adjusted within five years or the tenure of the contract between tenants and owners, whichever is lower.

In case of failure of adjustment in the entire amount of advance rent within the time frame, the rest of the amount would be considered income of the house owners.

In the bill, tax on renewal of trade licences has been increased for traders of Dhaka and Chattogram city corporations, pouroshova and district towns.

The move will increase the cost of holding trade licences.

Traders in Dhaka and Chattogram city corporations will have to pay Tk 3,000 instead of Tk 500 for the renewal of trade licences.

The tax has been set at Tk 2,000 increasing from Tk 300 for traders in any other city corporations, Tk 1,000 instead of Tk 300 for traders in any municipal district headquarters and Tk 500 increasing from Tk 100 for traders in any other municipality in the country.

The bill has imposed 5.0 per cent tax at source on house rent, hotel room rent, convention hall, conference centre, community centre, restaurant and other space rent.

Tenants like companies and other organisations specified in the income tax law will deduct the tax while the payment of rent to house property owners.

The provision will not be applicable to individual tenants.

doulot_akter@yahoo.com

 

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