On 6 August 2026, the National Board of Revenue (NBR) of Bangladesh published a revised jurisdictional order governing tax deduction and collection at source (TDS/TCS). This directive supersedes the previous instruction issued under the same memo number and date, reflecting an administrative update to clarify the territorial authority of tax officials responsible for enforcing withholding tax provisions under the Income Tax Act 2023 and the Value Added Tax and Supplementary Duty Act 2012. The order aims to eliminate jurisdictional overlaps between regional tax offices, ensuring that taxpayers and withholding agents interact with a single designated authority for source tax compliance, thereby reducing disputes and enhancing revenue certainty.
Key Takeaways
- Clear Territorial Demarcation: The order assigns specific geographic zones to each Deputy Commissioner of Taxes (DCT) and Assistant Commissioner of Taxes (ACT), linking their authority to the registered address of the withholding agent. This eliminates ambiguity where multiple offices previously claimed jurisdiction over the same taxpayer, particularly for companies operating across multiple locations.
- Streamlined Compliance for Withholding Agents: Businesses required to deduct or collect tax at source—such as employers, contractors, and importers—must now submit returns and payments exclusively to the office designated for their principal place of business. The NBR has mandated that all field offices update their records and communicate the changes to registered taxpayers within 15 working days.
- Retrospective Effect and Transitional Relief: Although the order carries the same date as the original memo, it applies prospectively from the date of publication. The NBR has clarified that any assessments or demands initiated under the prior jurisdictional framework before 6 August 2026 remain valid, but future proceedings must follow the new allocation. Taxpayers with pending cases are advised to verify the competent authority to avoid procedural defects.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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