The National Board of Revenue has exempted Bangladesh Telecommunications Company Limited (BTCL) from paying 15% value added tax (VAT) on the portion of its revenue sharing with foreign companies, NBR officials said.
They said the state-run company was paying 15% VAT on its total service fees collected from the local clients as well as on the revenue share that has led to a double taxation scenario.
To avoid the double taxation, the NBR on Sunday exempted BTCL from paying 15% VAT on the amount of the revenue share for outgoing international calls, internet bandwidth service, satellite channel service and Inmarsat services companies, officials added.
The NBR issued the order following a request from BTCL to exempt them (BTCL) from deducting tax at source on payment to foreign countries as it was creating revenue losses for the country.
According to a letter, BTCL said it is entitled to share one of its revenue portion collected from the clients for outgoing international calls with the destination countries that led to double taxation which needs to be exempted.
The NBR issued a Statutory Regulatory Order that said as the banks deduct 15% VAT on the amount of
revenue sharing following the provisions of Value Added Tax Act 1991, which results in double taxation, NBR is exempting BTCL from paying 15% Vat on revenue sharing to avoid double taxation.
