Tax For Shares
NBR sets issue price as base for tax collection
The National Board of Revenue has recently informed the Dhaka Stock Exchange that the issue price of shares of a company approved by the stock market regulator would be considered as the base price for tax payment by the shareholders. A DSE web post on Tuesday said the tax would be collected at the rate of 5 per cent on the difference between transfer value and cost of acquisition of the securities or mutual fund units.
If the paid up issue price is more than the approved issue price, it will not be considered in collecting tax at source, it added.
‘Sometimes there arises confusion over the base price for tax calculation as price of shares varies from hand to hand. The NBR has cleared the confusion. Now, the company stipulated price of shares will be the base price for tax calculation no matter at what price the holders bought the shares,’ said a DSE official.
-With New Age input
