Business operations become complicated when anyone wants to expand their business overseas. Foreigners need to follow Bangladeshi corporate norms and regulations if they want to do business here. When foreign business entrepreneurs expand the business into Bangladesh, many choose to send their local employees to the overseas market.
These expatriate employees who are working for the short or long term can find this process complicated because they had to focus on the laws of both the home country and the foreign land. There is a possibility of an increase in tax burden depending on their assignment.
This is especially true for foreign employees in Bangladesh. For this many companies use a process called tax equalization to reduce the variation in taxes caused by foreign assignments. Azuwa Resources assist foreign employees in every process of tax equalization with their expert knowledge and experience.
BIDA for Foreign Work Permit
About 12,000 foreigners receive permission each year to work in Bangladesh, according to Bangladesh Investment Development Authority (BIDA) data. Foreigners mostly from India, Pakistan, South Korea, Sri Lanka, China, Taiwan, and some European, African countries are currently working in Bangladesh.
They are working in non-government organizations (NGOs), education institutions, hotels, restaurants, garments, hospitals, and other sectors. Any company that is employing foreign nationals needs to take prior permission from BIDA.
Nevertheless, foreign employees face complexities in maintaining tax processes. Bangladesh has a different policy for taxation. So, Azuwa Resources help in this process to make the taxation process easier for foreigners. Income tax is payable by an individual on overall income from all sources excluding exempt income.
Foreign nationals are generally taxed only on income earned from working in Bangladesh and on foreign income received from Bangladesh sources. Non-residents are taxed only on income accrued, received, or deemed to accrue or be received in Bangladesh.
Consequently, their income residing outside Bangladesh is not taxable in the country. Through tax equalization expatriates are taxed on income earned for working in Bangladesh wherever that may be paid and on foreign income received from Bangladesh sources.