The National Board of Revenue (NBR) has offered a set of incentives in the form of income tax exemptions to organisers and participating countries in the recently concluded ICC U19 Cricket World Cup 2016 in order to promote and facilitate the growth of sports in Bangladesh.
Exemption of income tax and deduction of tax at source have been offered by the income tax wing of the NBR under several forms of earnings in a circular signed by NBR Chairman Md Nojibur Rahman on February 28.
Bangladesh hosted the ICC U19 Cricket World Cup 2016 from January 27 to February 14, and 16 countries participated in the tournament.
The countries are South Africa, New Zealand, Pakistan, England, Australia, Bangladesh, Sri Lanka, West Indies, India, Scotland, Afghanistan, Zimbabwe, Namibia, Canada, Fiji and Nepal.
The NBR authorities offered tax exemptions for earnings of non-resident Bangladeshis employed by the International Cricket Council (ICC), ICC Development International (IDI) Limited and ICC’s associate organisations during the tournament as representatives, agents, officials, staff and media workers.
The earnings eligible for tax exemptions include salary, allowance, gratuity, daily allowance and refundable costs, the circular said.
The NBR also exempted income tax to players, coaches, trainers, doctors and officials of any participating country, except Bangladesh, on any income including match fee, prize money or any other reward received during the tournament.
The ICC, IDI and ICC’s associate organisations were exempted from any income including commercial sale of title and income eligible for refund that they received in Bangladesh.
Bangladesh Cricket Board (BCB) and the ICC’s local organising committee were also offered the special tax privilege on any income given by the ICC or the IDI after the end of the tournament. The types of income include dividend, service charge, royalty or any other earnings.
The BCB, local organising committee of the ICC, associate organisations of the ICC and the participating countries were given the tax exemption facility on the import of all products required for the tournament.
In addition, the local organising committee of the ICC in Bangladesh or the BCB was exempted from deduction of source tax on salary paid to any Bangladeshi resident from the fund given by the ICC or IDI.
Usually, a person responsible for making any payment classified as “salaries” shall deduct tax, at an average rate, on the amount at the time of making such payment, according to Section 50 of the income tax ordinance 1984.
The NBR has provided special tax exemption facilities for Bangladesh Cricket Board to hold international tournaments such as Asian Cup and Under 19 Cricket competition in line with the prime minister’s policy to promote sports, culture and tourism in the country, said NBR Chairman Nojibur.