Tax waiver extended for twin bourses
Dhaka and Chittagong stock exchanges will get a full tax waiver for the current fiscal year too.
The National Board of Revenue offered the benefits following the finance minister’s instruction to consider the bourses’ demand for full tax exemption, instead of partial exemption.
The NBR issued a notice on April 25 revising a previous circular that provided gradual tax reduction to the demutualised stock exchanges for the first five years of demutualisation.
Before demutualisation, the stock exchanges were non-profit cooperatives owned by the exchange members, and were not subject to corporate tax.
But with demutualisation, which is a way of separating management from ownership, the bourses were converted into profit-oriented companies in 2013, owned by shareholders, and were subject to 35 percent corporate tax.
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