The NBR has set a new definitions for the types of advertisements and content disseminated through non-resident entities. Quoting the National Board of Revenue (NBR), Bangladesh Bank has said that if any advertisement is carried out using ‘digital marketing’ or internet, i.e. if any advertisement is carried out on social media or website or any content is promoted or marketed, it will be considered as digital marketing. Any content or advertisement broadcast on any television or radio channel shall not be considered as digital marketing.
As a result, from now on, foreign companies like Facebook-YouTube will have to pay a tax of 15 percent to take home the income from advertisements published through the use of the Internet in Bangladesh. Besides, the foreign companies have to pay 20 percent tax on income from ‘Television-Radio’ to take the income home. Banks will deduct this amount while paying the bill.
In a circular issued by Bangladesh Bank on Monday (May 8), it is mentioned that the banks should deduct a maximum of 20 percent tax for remittances to non-resident organizations in the form of remittances from advertisements distributed through foreign organizations. Bangladesh Bank has given new instructions to the banks to deduct tax at the rate of 15 percent in ‘Digital Marketing’ category and 20 percent in ‘Advertising Broadcasting’ category while sending money abroad.
As far as ‘advertisement broadcasting’ is concerned, only the broadcasting of any advertisement on any television or radio channel shall be considered as advertisement broadcasting. Any advertising broadcast using the Internet, i.e. any advertisement broadcast on social media or website or promotion or marketing of any content shall not be considered as advertisement broadcasting.
The circular states, ‘Banks will not be able to deduct tax at different rates from different customers for sending remittances to non-resident institutions till next June.’
