Until now, the NBR has exempted non-resident firms having no offices in the country from filing income tax returns

Global tech giants such as Google and Facebook are likely to come under the tax net from the next fiscal year as the authorities plan to make submission of returns mandatory for the firms that have no physical presence in Bangladesh but are doing business here.

Until now, the National Board of Revenue (NBR) has exempted non-resident firms having no offices in the country from filing income tax returns.

But this could change from the next fiscal year, starting on July 1, as the exemption is expected to be withdrawn as part of an initiative planned to collect taxes from digital service providers.

The lifting of the waiver will make it compulsory for digital multinational companies, which are doing business in Bangladesh by providing various services without setting up any physical office, to submit the statements of their income originating here, finance ministry officials said.

"What we see is that the business of tech companies is growing in Bangladesh. So, regular filing of tax returns by the firms with no office will allow us to tap into the expanding digital economy," said one official.

At present, global technology companies can secure value-added tax registration from the NBR without opening offices in Bangladesh.

Last year, a number of tech biggies, namely Google, Facebook, Amazon and Microsoft, received VAT registration, enabling the revenue authority to ensure compliance of the firms under the rule framed in 2019.

In October 2021, the High Court also directed the government to take steps to collect taxes, VAT and other charges on the revenues generated by the companies in the country.

It also said the companies must complete their VAT registration with the NBR – a process that is mandatory under the Value Added Tax and Supplementary Duty Act, 2012.

The finance ministry official said the latest measure to bring tech companies under the rule of mandatory submission of tax returns has been considered in line with the High Court directive.

Various countries have already brought multinational tech companies under their tax net.