The National Board of Revenue has asked its field offices to make sure that the authorities deduct 10% income tax at source on payment of honorarium against services such as attending meetings or trainings.
With the budget for fiscal year 2015-16, the government imposed 10% tax on honorarium paid to persons for attending board meetings or annual general meetings of the government, semi-government, non-government and international organisations in Bangladesh, autonomous bodies, banks and insurance and limited companies.
The field offices, however, have wrote to NBR that there are confusions on implementing the decision.
In such a situation, the income tax wing of NBR on March 6 issued a clarification signed by its second secretary Md Jashimuddin Ahmed to effect the decision.
According to the clarification, 10% source tax will be applicable to any payment including meeting fee and honorarium paid to any person for attending meeting as resource person or trainer for any trainings.
No tax, however, will be applicable to daily and training allowance or any other payment made to the trainees.
The NBR has sent the clarification to all of its income tax commissioners across the country. A copy of the clarification was also sent to general manager, Human Resources Department 1 (regulations desk) of Bangladesh Bank for their concern.