Fiscal Incentives:
1. A publicly traded company enjoys a reduced tax rate of 27.5%, whereas a non-listed company is required to pay 37.5% income tax.
2. A mobile phone operator company which offers at least 10% of its shares in the IPO, enjoys a reduced tax rate of 35%, whereas a non-listed mobile phone operator company is required to pay 45% tax.
3. Capital Gain from transfer of Stock and Shares of listed companies is tax free in the hands of assessee.
4. Investment in Primary and Secondary Market share is eligible for Investment Allowance.
5. Interest on SEC approved debentures up to Tk. 20,000 is tax exempted.
6. Dividend from Mutual Fund or Unit Fund up to Tk. 25,000 is exempted.
7. Any income of Mutual Fund is tax exempted in the hands of issuers.
8. Tax on dividend in the hands of corporate assesses (20%) is treated as the final discharge of tax liability on dividend income.
9. A member of Stock Exchange is subject to 0.025% tax on the value of securities traded, which is supposed to be treated as the final discharge of tax liability.
Other Incentives:
1. A sharp decline in bank rate resulting in fall of interest rate in bank deposits is acting as an incentive to invest in securities market.
2. Allowing foreign investors to participate in IPO and right issue without any regulatory restrictions.
3. Withdrawal of all regulatory restrictions on International Portfolio Investors
for investing in the secondary securities market.
4. Withdrawal of ceiling on holding of International Portfolio Investors.
This page is last updated on 10 June, 2009